Securities fraud lawyers From Erez Law represent investors seeking to recover losses caused by these violations. Our attorneys pursue claims through FINRA arbitration, AAA and JAMS proceedings, and state and federal litigation on behalf of clients nationwide and internationally.
Securities fraud occurs when investors are misled, deceived, or harmed in connection with the purchase or sale of securities. The misconduct may involve a single broker misrepresenting an investment’s risks, a brokerage firm failing to supervise its representatives, or a broader scheme involving market manipulation or unregistered offerings.
With 20+ years of experience, $300 million recovered, and a 99% success rate, our nationwide investment fraud law firm brings the preparation and resources needed to hold brokerage firms, financial advisors, and other parties accountable.
Contact us today to explore your legal rights and options during a free consultation. Call 305-728-3320 or toll-free 888-840-1571. Hablamos Español. International clients may reach us via WhatsApp at 305-336-8068 (text only).
Why Choose Erez Law for Securities Fraud Claims?
Securities fraud cases are built on documents, not narratives. The outcome depends on whether the investor’s legal team knows how to find the right evidence, interpret it correctly, and present it in a way that moves an arbitration panel or judge.
Focused Entirely on Securities and Investment Fraud
Every case we take involves investor claims against brokerage firms and financial advisors. That singular focus means our attorneys have deep familiarity with the regulatory framework, the products at issue, and the defense strategies these firms rely on.
Thousands of Cases Across Every Major Forum
Our securities fraud lawyers represent investors in FINRA arbitration, AAA and JAMS proceedings, and state and federal court. We select the forum that gives each client the strongest path to recovery based on the specific facts, the parties involved, and the legal theories available.
Discovery That Goes Deeper Than the Surface
Brokerage firms produce thousands of pages of records during discovery. Knowing which documents matter, where supervisory failures leave a trail, and how to connect internal compliance records to the misconduct alleged in the claim is what separates thorough case preparation from paperwork processing. Our “no stone unturned” approach to discovery is the foundation of every case we build.
Results Against the Largest Firms in the Industry
We have represented claims against Merrill Lynch, UBS, Morgan Stanley, Wells Fargo Advisors, LPL Financial, and other major national and regional brokerage firms. These institutions retain experienced defense counsel and dedicate significant resources to every arbitration. Our track record reflects a firm that matches that level of preparation.
Contingency Fee, Free Consultation
Erez Law works on a contingency fee basis, meaning no attorney fees are owed unless we recover for you. Clients are responsible for case-related costs, and the contingency fee is calculated before deducting those costs. Every case begins with a free, confidential review.
Call 305-728-3320 or toll-free 888-840-1571. Hablamos Español. International clients may reach us via WhatsApp at 305-336-8068 (text only).
What Is Securities Fraud?
Securities fraud is a broad legal category that covers deceptive or manipulative conduct in connection with securities transactions.
Federal securities laws, including the Securities Exchange Act of 1934, establish the legal framework governing these claims. SEC Rule 10b-5, the most widely cited anti-fraud provision, prohibits material misrepresentations, omissions of material facts, and fraudulent schemes in connection with the purchase or sale of any security.
In practice, securities fraud takes many forms. Some involve individual broker misconduct within the advisor-client relationship. Others involve firm-wide compliance failures or large-scale schemes that affect hundreds or thousands of investors.
The common thread is that someone with an obligation to act honestly in a securities transaction failed to do so, and investors suffered losses as a result.
How Securities Fraud Differs from Investment Fraud
The terms “securities fraud” and “investment fraud” are often used interchangeably, but they are distinct. Understanding the distinction helps investors evaluate their claims and identify the right recovery path.
Securities Fraud: A Legal Standard
Securities fraud is defined by federal and state securities statutes. A securities fraud claim under Rule 10b-5 requires proof that the defendant made a material misrepresentation or omission, acted with scienter (intent or recklessness), and that the investor relied on that misrepresentation in connection with the purchase or sale of a security. These claims may be pursued in federal court or, in many broker-dealer disputes, through FINRA arbitration.
Investment Fraud: A Broader Category
Investment fraud is a broader, more general term that encompasses securities fraud but also covers misconduct involving investments that may not qualify as securities under federal law. Ponzi schemes, real estate fraud, and certain alternative investment scams may fall under investment fraud without meeting the technical definition of securities fraud.
Why the Distinction Matters
The legal theories available, the forums where claims may be filed, the statutes of limitations, and the burden of proof all differ depending on whether a claim is framed as securities fraud, common law fraud, negligence, or breach of fiduciary duty.
A securities fraud lawyer evaluates which legal theories apply and which forum gives the investor the strongest path to recovery.
Common Securities Fraud Claims We Handle at Erez Law
Securities fraud claims arise from a range of misconduct. Some involve individual broker behavior. Others involve systemic failures at the firm level.
Misrepresentation and Omission of Material Facts
A broker or advisor who misrepresents the risks, fees, performance history, or fundamental characteristics of an investment may be liable for securities fraud. The same applies when material information is omitted entirely.
Failure to Supervise
Brokerage firms are required to supervise the activities of their registered representatives. When a firm fails to implement adequate supervisory procedures, ignores red flags in broker conduct, or allows problematic trading patterns to continue unchecked, the firm itself may bear liability for resulting investor losses.
A failure to supervise claims holds the institution accountable, not just the individual broker.
Unsuitable Investment Recommendations
Brokers are generally expected to make recommendations consistent with a client’s risk tolerance, objectives, and time horizon under the rules that apply to the account. Suitability claims arise when an advisor disregards these factors, placing investors in products that serve the broker’s compensation interests rather than the client’s financial goals.
Churning and Excessive Trading
Churning occurs when a broker engages in excessive buying and selling to generate commissions at the investor’s expense. The trading activity benefits the broker while eroding account value through unnecessary transaction costs. Quantitative analysis of turnover ratios and cost-to-equity ratios can reveal whether trading crossed the line into churning.
Unauthorized Trading
Trades made without the investor’s authorization, such as in a non-discretionary account or outside the scope of any trading authority, may constitute unauthorized trading. These claims focus on whether the broker had actual authority to execute the transactions in question.
Selling Away
Selling away involves a broker recommending or facilitating securities transactions outside the brokerage firm’s oversight. These transactions may involve unapproved products, unregistered securities, or private offerings that bypass the firm’s compliance review and can reduce investor protections, though firms may still face liability depending on the facts.
Breach of Fiduciary Duty
Certain financial advisors owe a fiduciary duty to their clients, requiring them to act in the client’s interest rather than their own. A breach of fiduciary duty claim arises when the advisor places personal financial interests above the obligations owed to the investor.
FAQs for Securities Fraud Lawyers
A FINRA arbitration claim is a private dispute resolution proceeding filed by an investor to recover financial losses from a broker or brokerage firm. An SEC complaint is a regulatory matter reporting potential violations of securities laws. SEC complaints may lead to enforcement actions and penalties, and while investors sometimes receive distributions in SEC cases, an SEC complaint is not the same as filing a claim to recover your own losses
Deadlines depend on the forum and the type of claim. FINRA has a six-year eligibility rule. Federal Rule 10b-5 claims have strict time limits: generally, two years from discovery (or when it should have been discovered) and a limit of five years from the violation, though the analysis can be fact-specific. State deadlines vary. Consulting a securities fraud attorney promptly helps preserve all available options.
Yes. Brokerage firms have a duty to supervise their registered representatives. When a firm fails to implement adequate compliance procedures, ignores warning signs, or allows misconduct to continue, the firm may be held liable through a failure to supervise the claim. This theory of liability is one of the most common in FINRA arbitration.
A broker’s departure from a brokerage firm does not eliminate the investor’s ability to file a claim. In many cases, the brokerage firm itself remains liable under failure to supervise theories regardless of whether the individual broker is still employed there. Claims may be filed against both the broker and the firm, and FINRA arbitration proceedings may move forward even if the broker has changed firms or left the industry entirely.
Investors may represent themselves, but FINRA arbitration involves procedural rules, discovery requirements, arbitrator selection strategy, and damages calculations that may significantly affect the outcome. Brokerage firms retain experienced defense counsel for every claim. A securities fraud attorney familiar with the process may help level that imbalance.
Securities Fraud Beyond the Broker-Client Relationship
Not all securities fraud originates from an advisor-client relationship. Broader schemes may affect investors who have never had a direct relationship with the wrongdoer.
Market Manipulation and Stock Price Manipulation
Market manipulation involves artificial inflation or deflation of a security’s price through deceptive trading activity, false information, or coordinated schemes. “Pump and dump” operations, in which promoters inflate a stock’s price before selling their own holdings, are among the most common examples. Investors who purchased shares at manipulated prices may have claims for recovery.
Insider Trading Consequences for Investors
Insider trading occurs when individuals trade securities based on material, nonpublic information. Insider trading is mainly handled through SEC enforcement and criminal cases, and private civil claims are limited and depend heavily on the specific facts. These cases often involve complex tracing of trades and information flow.
Unregistered Securities Offerings
Many securities offerings must be registered with the SEC unless they are sold under a registration exemption. When unregistered securities are sold without proper disclosure, the investors who purchased them may have rescission rights or fraud claims. These cases frequently overlap with private placement fraud and selling away claims.
Where Are Securities Fraud Claims Filed?
The appropriate forum for a securities fraud claim depends on who committed the misconduct, the nature of the claim, and the terms of any account agreement.
FINRA Arbitration
Most claims between investors and broker-dealers proceed through FINRA arbitration. Under FINRA Rule 12200, member firms generally must arbitrate when a customer requests it, and the dispute relates to the firm’s business or its registered representatives. The award is binding, with very limited grounds for appeal.
Our securities fraud lawyers have handled thousands of FINRA arbitration cases. We prepare every claim as though it may proceed to a full hearing, because that preparation drives outcomes at every stage.
AAA and JAMS Arbitration
Claims against registered investment advisors or other parties outside FINRA’s jurisdiction may proceed through the American Arbitration Association or JAMS. Our attorneys represent investors across all three arbitration forums.
Federal and State Courts
Securities fraud claims under Rule 10b-5 may be filed in federal court. State securities statutes provide additional avenues for recovery in state court. Litigation may be appropriate when the claim involves parties outside FINRA’s jurisdiction, when class action mechanisms apply, or when statutory remedies offer advantages not available in arbitration.
How Our Securities Fraud Lawyers Build Cases
The defense teams retained by brokerage firms evaluate the opposing law firm before making any settlement assessment. Investors represented by attorneys with a track record in securities arbitration and litigation receive different treatment than those without experienced counsel.
At Erez Law, our case-building approach follows a discovery-driven methodology at every stage.
- Account and trading analysis: Every case begins with a detailed review of account records, trading patterns, and the regulatory framework governing the advisor’s conduct.
- Discovery and document investigation: Our attorneys examine compliance files, supervisory records, internal communications, and transaction histories to identify the evidence that establishes liability and drives case value.
- Damages modeling: The appropriate measure of loss may include net out-of-pocket losses, market-adjusted losses, excessive fees and commissions, interest, and in limited circumstances, punitive damages. Our team presents a clear, defensible calculation tailored to the facts of each claim.
This process reflects the same preparation our attorneys apply whether a case resolves through settlement or proceeds to a full hearing before an arbitration panel.
Who Do Securities Fraud Lawyers Represent?
Erez Law represents individuals, families, and entities affected by securities fraud and broker misconduct.
- Individual investors harmed by misrepresentation, unsuitable recommendations, or unauthorized trading
- Retirees and seniors whose savings were placed in inappropriate or high-risk securities
- Trusts, estates, and pension plans affected by fiduciary failures or advisor negligence
- Family partnerships and family offices with complex, multi-account portfolios
- Ultra-high-net-worth individuals targeted for large-scale misconduct
- International investors harmed by U.S.-based brokers and brokerage firms
Our attorneys represent clients throughout the United States, Puerto Rico, and internationally, including investors across Latin America. We handle claims in English and Spanish.
When Something Went Wrong, a Securities Fraud Attorney Can Help Prove It
Most investors who contact a securities fraud lawyer already sense that something is not right. The account lost more than it was supposed to. The advisor’s explanations stopped adding up. The statements told a story that didn’t match the promises.
Turning that instinct into a provable claim requires evidence, analysis, and a legal strategy built for the forum where the case will be heard. That is the work our attorneys do every day.
Erez Law has tried over 50 cases to award in FINRA arbitration and secured the largest sanctions award in FINRA arbitration history against Morgan Stanley. If the numbers in your account do not match the promises that were made, a free case review is the fastest way to find out where you stand.
Call 305-728-3320 or toll-free 888-840-1571. Hablamos Español. International clients may reach us via WhatsApp at 305-336-8068 (text only).