The attorneys of Baskin PLC represent Arizona clients in litigation and arbitration proceedings in front of the Financial Industry Regulatory Authority (FINRA), the American Arbitration Association (AAA), the Securities and Exchange Commission (SEC), state securities regulators such as the Arizona Corporation Commission, as well as state and federal courts. We have a unique and diverse background prosecuting and defending securities matters that gives us the insight few others have.  Our firm features one of a select group of Arizona securities attorneys to have obtained a 7-figure award in an NASD (now FINRA) arbitration. We believe we have the only Arizona attorney over the past 30 years to have twice obtained attorneys’ fees against our state securities regulators when they have overstepped their bounds.  We have also prevailed and been awarded attorneys’ fees against a brokerage firm that overzealously attempted to attach a client’s assets.

We help investors recover money they have lost due to:

  • Investment adviser misconduct
  • Securities fraud, misrepresentation and churning
  • Selling away, which means selling investments not approved by the brokerage firm
  • Stockbroker fraud and misconduct
  • Unsuitable investments based on the investor’s age, risk tolerance or other factors

Our attorneys also represent stockbrokers, financial advisers, promoters and other investment professionals who are accused of fraud and misrepresentation. We defend investment professionals in administrative and civil proceedings and also from criminal charges arising from alleged securities fraud

Stockbrokers must follow the “know your customer” rule and recommend investments that are suitable in light of their customers’ age, financial condition, tax status, investment objectives, other investments and investment experience, time horizon, risk tolerance and liquidity needs. Stockbrokers must also place their customers’ interests ahead of their own, disclose risks and fees, recommend an appropriate investment strategy, and offer only products approved by their firm. At its core, the stockbroker-customer relationship is about trust.

Our Phoenix stockbroker fraud attorneys represent both investors and stockbrokers when that relationship has gone awry. We have enjoyed great success representing victims of stockbroker fraud; our firm includes one of only a handful of Arizona attorneys to have obtained a 7-figure NASD (now- FINRA) arbitration award from an Arizona panel. We also represent individuals who have been named as Respondents in arbitrations. We believe we have the only Arizona attorneys to have successfully prevailed and been awarded attorneys’ fees against a brokerage firm that unsuccessfully attempted to attach a client’s assets.

 

Our attorneys prosecute and defend claims arising out of alleged stockbroker fraud and misconduct, such as:

  • Churning, unauthorized trading, misrepresentations, omissions and other types of securities fraud
  • Disclosure failures
  • False and misleading disclosures
  • Licensing issues
  • Negligence and fraudulent misrepresentation
  • Negligent or otherwise inadequate supervision of securities professionals
  • Penny stock fraud
  • Ponzi schemes
  • Portfolio pumping
  • Selling away, which means selling investments not approved by the brokerage firm
  • Theft of client funds
  • Unsuitable investments based on the investor’s age, risk tolerance or other factors

In addition to matters involving customer disputes with brokerage firms, our Phoenix stockbroker fraud attorneys handle employment law matters including termination, discrimination and raiding cases.

Investment advisers have a great deal of discretion and control over customer’s money. With this discretion comes a high level of responsibility, called a fiduciary duty, which is owed to the customer.

Investment advisers are typically compensated based on a percentage of the assets under management, rather than on transactions. As a result, the interests of the investment adviser and the customer are supposed to be aligned. Those interests are not aligned, however, when the investment adviser:

  • Picks the wrong investment
  • Misrepresents the risks of an investment
  • Charges excessive markups and advisory fees
  • Funnels a customer’s money to hedge funds or other investments set up by the investment adviser to serve the adviser’s interests rather than the customer’s
  • Does not disclose conflicts or the details of the relationship between the investment adviser and the investment being offered
  • Places numerous customers in the same investment, regardless of their differing financial circumstances
  • Runs Ponzi schemes

Our attorneys represent both customers and investment advisers in claims arising out of alleged investment adviser fraud and misconduct in Phoenix.

There are many different ways a stockbroker or investment adviser can commit securities fraud, from recommending an unsuitable investment to misrepresenting an investment, to stealing from a client. Our Phoenix securities fraud attorneys prosecute and defend claims arising out of alleged violations of federal and state securities laws.

 

Securities fraud cases can include:

  • Churning: Excessive trading to generate fees and commissions
  • Failure to diversify: The market consists of many investment areas, and if your stockbroker fails to advise you to diversify, you could end up paying the price if your investment performs poorly.
  • Misrepresentations and omissions: If a stockbroker is going to sell an investment, he or she must disclose everything about it. If your stockbroker doesn’t tell you the truth or leaves things out, he or she could be committing securities fraud.
  • Selling away: Your stockbroker cannot sell investments that are not approved by the brokerage firm.
  • Unauthorized trading: Unless you have given your stockbroker written permission to trade for you, he or she must get your permission for each trade before making it.
  • Unsuitable investments: Your stockbroker is required to recommend suitable investments based on your age, risk tolerance and other factors

When you hire a broker to invest your money, your broker is required to recommend suitable investments based on your age, income, liquidity needs, health, financial condition, tax situation, time horizon, financial savvy, risk tolerance and investment goals. If you do not provide this information, your broker is required to ask you. This is known as the “know your customer” rule.

 

Our Phoenix unsuitable investment attorneys prosecute and defend claims arising out of unsuitable investments. Examples of unsuitable investments due to stockbroker negligence include:

 

  • Investing the money of an elderly person in high-risk stocks. If the investments decline in value, the customer may not have enough time to recover the money.
  • Over-concentrating clients’ investments in one asset class Selling highly speculative investments, alternative investments and/or private placements when the customer does not understand the investments
  • Selling illiquid investments such as real estate when the customer needs steady monthly income
  • Investing retirement funds in a variable annuity
  • Selling investments not sponsored or approved by the brokerage firm (selling away)

When an investment firm fails to supervise a stockbroker, it may create liability. Brokerage firms, investment advisors, and stock brokers all have a responsibility to follow an array of United States Securities and Exchange Commission (“SEC”), Financial Industry Regulatory Authority (FINRA) and state laws and/or rules. You may have made unsuccessful investments and now realize that you need an attorney experienced in investment law and regulations related to the securities industry. You may have a case involving failure to supervise by your securities advisers if you suspect:

  • A stock broker did not adequately advise an investor of risks
  • An adviser was not adequately trained and invested investor assets inappropriately or without authority
  • The brokerage firm did not adequately supervise communications to investors about securities
  • The brokerage firm was unaware of a broker’s irresponsible or vicarious investments
  • Your broker engaged in selling away from the brokerage firm.
  • A broker engaged in churning to create unnecessary fees

Financial institutions in Arizona-and throughout the United States-have an obligation to supervise their advisers and brokers. Many investment firms and brokerage houses have hundreds and maybe even thousands of employees.  In such cases, they must be diligent in their supervision. You may need an Arizona securities attorney to get the justice you deserve if you suspect failure to supervise has occurred.  Contact our law firm.

Accused of failure to supervise? Need a law firm focused on stocks and securities in Arizona?

We also represent clients who are charged with improperly supervising their financial advisors, and we have attorneys who have long defended brokerage firms, registered representatives and investment advisors. If you have been accused of stockbroker fraud, insider trading, recommending unsuitable investments or failure to supervise-we have the experience to guide you through the complexities of Arizona and federal financial regulations and law.

Before a stockbroker can recommend or sell an investment to a customer, the investment must be approved by the brokerage firm. Many times, however, stockbrokers sell investments that have not been approved. This is known as “selling away” from the firm. When a stockbroker does so, the customer may have a cause of action if the investment loses money.

 

Our attorneys have long prosecuted and defended selling away claims in arbitration and litigation.

 

There are many reasons why a stockbroker may sell securities not approved by the firm. Here are some examples:

  • To make private placements in securities not held or offered by the firm
  • To earn commissions from the promoter of the investments and not have to share them with the brokerage firm
  • To sell investments associated with the broker’s outside business activities that are separate from the firm

Stockbrokers often invest in the outside activity or are actually the promoters of the investment. Brokerage firms have a duty to supervise stockbrokers and ensure they sell approved investments. Each case is different, but many times stockbrokers use their firm’s e-mail address, meet with clients at the firm to discuss the outside investment or brazenly sell an investment without attempting to conceal it from the firm. If the brokerage firm fails to properly supervise and does not detect sales of unapproved products, the firm could be held responsible for investment losses.

Prosecutors are becoming increasingly aggressive in their pursuit of conviction related to financial crimes. If you have been arrested, convicted, or feel that you may soon be arrested for accusations of a white collar crime in Phoenix-including hedge fund investment fraud-you deserve a law firm with the resources to rigorously defend your rights. Aggressive prosecuting attorneys can only be answered by aggressive white collar criminal defense attorneys.

 

Since such nationally significant cases like HealthSouth, ENRON, and WorldCom, and the passage of Sarbanes-Oxley, prosecutors have become more zealous in their pursuit of charges related to accounting fraud, stockbroker fraud, and a host of other financial crimes. Not every case involves billions of dollars-like the HealthSouth case- but every case deserves rigorous and sophisticated defense by highly experienced attorneys. Contact us if you are the subject of a hedge fund investigation or are worried that you may be.

 

Our hedge fund fraud attorneys have decades of experience involving securities law and all types of financial crimes including hedge fund fraud, which allows them to anticipate your needs and to investigate ways to seek the justice you deserve.

 

If you have been manipulated or encouraged to make an investment that turned out to involve fraud, you may be entitled to compensation.

 

A Ponzi Scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. All Ponzi Schemes are destined to collapse. Ponzi schemes and other financial crimes in Phoenix, Arizona can carry serious consequences. If you have been arrested for suspected involvement in an Arizona Ponzi scheme or pyramid scheme, you need a rigorous defense of your rights by a widely-recognized Phoenix law firm. Similarly, if you believe you have been victimized by a Ponzi Scheme we are uniquely equipped to help.

 

We have a long history of success that has earned us a well-deserved reputation. Our experience with complex state and federal financial law makes us well-prepared to help a variety of clients including those victimized by Ponzi Schemes or under investigation by the SEC, FINRA (Financial Industry Regulatory Authority) and the Arizona Corporation Commission.

 

We serve clients in Arizona and throughout the southwestern United States. Our attorneys are admitted to practice only in Arizona, and we associate with local counsel to handle cases in other jurisdictions.

Our Phoenix insider trading attorneys focus almost exclusively on issues related to financial regulations at the state and federal level. Our experience with civil and criminal cases can be used in your best interests if you face charges of insider trading.

 

We will use our knowledge of securities law and experience to investigate every significant detail of your case. You may be a corporate president, company director, large shareholder, or employee of a company and be accused of insider trading. If you are suspected of insider trading, the SEC or other securities regulators will meticulously study your behavior. They will zealously investigate your paper trail and pursue a conviction. If you are found guilty, you could be prevented from trading securities in the future. Or, you could face penalties of a harsher quality including prison time and massive fines. These accusations carry serious consequences even if you are not convicted.

 

Our insider trading attorneys have vast experience working with multiple agencies, multiple jurisdictions, and multiple administrative bodies that oversee financial regulations in Arizona and throughout the United States. We are more than familiar with the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and state securities regulators such as the Arizona Corporation Commission (ACC). We also have extensive experience with numerous state and federal courts.

 

Minimize the risk of conviction, protect your livelihood, and defend your reputation with an attorneys that has significant experience in securities litigation.

Cases of pump & dump or stock manipulation have a long history in Arizona and often affect thousands of people. Our Phoenix stock manipulation attorneys are more than familiar with a variety of ways that dishonest stockbrokers or other parties may manipulate the value of stock for their own gain. Similar to a Ponzi scheme and other types of stockbroker fraud, the investor is often kept in the dark about the real value of a stock. The Internet has created a new environment for such schemes:

 

  • Shell companies are used to send spam email to make stocks seem more valuable and invite investment
  • Multiple websites may be used to make a stock look more valuable and popular than it truly is
  • Emails are used to encourage investment on “this great new stock before it’s too late”
  • Misled investors purchase the stock and its value is artificially “pumped” up
  • The source of the pump then dumps their stock and leaves investors with valueless stock

Accused of stock manipulation in Phoenix, Arizona or are you a victim of Arizona stock manipulations?

 

We represent clients who have been victimized by “pump and dump” or other market manipulation schemes. Our attorneys can help clients obtain their compensation and justice when they have been the victim of a pump & dump scheme in Phoenix, Arizona.

 

Conversely, our years of experience prosecuting and defending securities cases allow us to help people and companies who have been accused of participating in a “pump and dump” scheme, market manipulation or other securities violations. You may need an attorney with experience defending clients in such cases in state and federal court, and before the SEC, FINRA and state securities regulators.

CONTACT A Skilled Phoenix Securities Litigation and Arbitration Attorney

To schedule a consultation, call 602-812-7977 or fill out our contact form.

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