There are several laws that govern the purchase and sale of securities. The most
commonly recognized laws are the Securities Act of 1933 and the Securities and
Exchange Act of 1934. In Texas, there is also the Texas Securities Act which, in a lot
of respects, parallels these two laws. Below are examples of the types of cases, this
firm is interested in retaining:
Securities Fraud. A broker, investment advisor, or investment promoter can be
held liable for ill-gotten gains or lost profits caused from the sale of securities if the
sale of the securities was perpetrated by fraud. The elements of fraud can be difficult
to prove; however, if you have lost over $50,000 in a personal investment, your case
should be reviewed by an attorney. Contact Us.
Bankrupt Companies - Registration Violations. All securities (common stock,
preferred stock, bonds, etc.) are required to be registered with the Securities and
Exchange Commission before being sold, unless an exemption applies. There are
several exemptions that may apply in the sale of securities. However, these
exemptions are often misunderstood or not followed. This type of violation occurs
most often in small to medium size corporations trying to raise capital and do not
spend the time to follow the rules. These matters get "tucked under table" during the
growing stages and are often overlooked or misunderstood. Unfortunately, many of
these corporations eventually fail and the investors are left out in the cold. If you
have lost a significant amount of money in a failed corporation, it would be
appropriate to consult with an attorney to review your case. Contact Us.
Broker Misconduct. There are several situations a broker may be financially liable
for the losses caused to your account. For example, "overconcentration" of your
account may cause you to incur a significant loss if that one "winner" drops
significantly in value. A broker may also be liable if, he or she made
misrepresentations to you or traded your account excessively (also known as
"churning") and caused you to incur a significant loss. A broker can be liable if he or
she makes a misrepresentation or omits to disclose a material fact regarding an
investment, which causes you to lose money. A broker has a duty to make
recommendations and oversee your account so that your account is consistent with
your investment objectives, risk tolerance, desired tax considerations, and level of
desired investment return. If you suspect broker misconduct, Contact Us to review
your case.
contents of this website should be forwarded to mikeforni@erisa-litigation.com. All Copyrights
Reserved 2004. "WARNING" - This website provides only general information and should not be
relied on any respect. Visitors should consult with legal counsel in order to ensure a thorough
and proper application of the complex rules that are highlighted in this website.
