California Investment Fraud Lawyers & FINRA Attorneys

Investment fraud lawyers serving California investors statewide

Bakhtiari & Harrison are California investment fraud lawyers and FINRA attorneys representing investors in FINRA arbitration and securities litigation throughout the state — from Los Angeles and San Francisco to San Diego, Sacramento, the Central Coast, and every California community in between. The firm is headquartered in Los Angeles and has recovered more than $250 million for clients over four decades of practice.

California is the largest securities market in the United States outside New York. The state’s concentration of entertainment industry wealth, Silicon Valley technology equity, agricultural landowner proceeds, military and veteran retirement assets, and public sector pension rollovers creates a diverse investor population that is disproportionately targeted for broker fraud, unsuitable investment recommendations, and investment scheme activity.

California securities law — stronger investor protections than federal law

California investors benefit from protections under both federal securities law and California’s own Corporate Securities Law of 1968 — commonly called the Blue Sky laws — codified in the California Corporations Code. California law provides several advantages for investors pursuing claims:

• Broader liability standard: California Corporations Code § 25401 prohibits any person from offering or selling a security by means of any written or oral communication that includes an untrue statement of a material fact or omits a material fact necessary to make the statements made not misleading. This is a broader standard than the federal antifraud provisions and does not require proof of scienter — intent to deceive.
• Rescission remedy: California law provides a rescission remedy under Corporations Code § 25501, allowing investors to recover their original investment plus interest when a sale was made in violation of § 25401 — regardless of whether the investment has any remaining value.
• Secondary liability: California Corporations Code § 25504 imposes secondary liability on broker-dealers, investment advisers, and other persons who materially assist in a violation — broadening the pool of defendants.
• Three-year limitations period: California state law claims under the Corporate Securities Law have a three-year limitations period from the date of the transaction — longer than some federal securities law claims.

Bakhtiari & Harrison’s California investment fraud attorneys are experienced in asserting California Corporations Code claims alongside federal securities law claims and FINRA rule violations in FINRA arbitration proceedings — maximizing both the legal theories available and the potential recovery for California investors.

Common investment fraud claims for California investors

Bakhtiari & Harrison pursues the following claim types in FINRA arbitration and California state and federal court on behalf of California investors:

• Broker fraud and misrepresentation: false statements or omissions of material fact in connection with the sale of a security (California Corporations Code § 25401 and federal securities law).
• Unsuitable investment recommendations: recommendations that do not match the client’s age, risk tolerance, financial situation, or investment objectives (FINRA Rule 2111 and Regulation Best Interest).
• Unauthorized trading: transactions executed without the client’s prior knowledge or approval (California Corporations Code § 25235).
• Churning: excessive trading to generate commissions at the client’s expense (California Corporations Code § 25218).
• Overconcentration: failure to diversify a portfolio, exposing the client to catastrophic loss in a single security, sector, or product.
• Failure to supervise: the brokerage firm’s independent liability when it fails to detect or prevent a broker’s misconduct (FINRA Rule 3110).
• Elder financial fraud: exploitation of elderly investors through unsuitable recommendations, unauthorized trading, or variable annuity abuse.
• Ponzi and pyramid schemes: fraudulent investment schemes paying earlier investors from new capital. California has been the location of numerous significant Ponzi scheme prosecutions.
• Private placement fraud: misrepresentation in the sale of unregistered Regulation D securities, a particularly common claim type in California’s active accredited investor market.
• Non-traded REIT and structured product failures: high-commission illiquid products that have been aggressively sold to California investors in every market segment.

How FINRA arbitration works for California investors — step by step

1. File a Statement of Claim. The process begins when Bakhtiari & Harrison files a Statement of Claim with FINRA on your behalf. The claim sets out the facts, the legal theories, and the damages you are seeking. The respondent — typically the brokerage firm and the individual broker — has 45 days to answer.
2. Select the arbitration panel. For claims over $100,000, a three-arbitrator panel is appointed. The selection process involves ranking lists of candidates. Bakhtiari & Harrison has appeared before California-based FINRA arbitrators for decades and brings deep familiarity with the regional arbitrator pool.
3. Complete discovery. Both sides exchange documents and information relevant to the claim. In FINRA arbitration, discovery is more streamlined than in court, but account statements, trade confirmations, suitability questionnaires, internal firm communications, and supervisory records are all typically produced.
4. Attend pre-hearing conferences. A FINRA case administrator will schedule pre-hearing conferences to set the hearing schedule, resolve procedural disputes, and narrow the issues for the arbitrators.
5. Present your case at the hearing. Both sides present evidence, call witnesses, and cross-examine opposing witnesses before the arbitration panel. Bakhtiari & Harrison’s attorneys are experienced FINRA hearing advocates who have tried complex securities cases to conclusion.
6. Receive the award. After the hearing, the panel issues a written award — typically within 30 days. FINRA arbitration awards are binding and enforceable in California state and federal courts.

Why choose Bakhtiari & Harrison as your California investment fraud attorney

• $250 million+ recovered. Four decades of FINRA arbitration and securities litigation results for investors throughout California and nationwide.
• FINRA leadership. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee and as President of PIABA, and is a Super Lawyer 2005–2026. Partner David Harrison is a former New York City assistant district attorney and ex-Morgan Stanley in-house counsel who began his career as a Series 7-licensed registered representative at Shearson Lehman Brothers — giving the firm direct inside knowledge of how brokerage firms build their defenses.
• California Corporations Code expertise. The firm layers California state law claims alongside federal claims and FINRA rule violations — maximizing recovery options for every California investor client.
• Statewide representation. The firm represents California investors in all 58 counties and in FINRA arbitration at both California hearing locations. There is no geographic limitation on the firm’s California practice.
• Contingency fee representation. No recovery, no fee. Initial consultations are free.

California investment fraud lawyers — cities and regions we serve

Bakhtiari & Harrison represents investors throughout California. FINRA arbitration hearings are held near the claimant’s residence, so distance from the firm’s Los Angeles headquarters is never a barrier to representation. Select your city or region below for specific information about the local investor landscape, FINRA hearing location, and how the firm pursues claims in your market.

Los Angeles and Southern California

The Los Angeles page covers the full metro market. On the Westside, the firm represents investors in Beverly Hills, Santa Monica, Brentwood, Pacific Palisades, Malibu, Bel Air, Beverlywood, and Culver City. In central Los Angeles, the firm represents investors in Hancock Park and Hollywood Hills. In the San Fernando Valley, the firm represents investors in Encino, Sherman Oaks, Studio City, Toluca Lake, and Hidden Hills. In the South Bay and San Gabriel Valley, the firm represents investors in Manhattan Beach and Pasadena.

Orange County, Ventura County, and Palm Springs

South of Los Angeles, the firm represents investors in Orange County — including Newport Beach, Irvine, Laguna Beach, and Mission Viejo — and in Ventura County — including Thousand Oaks, Westlake Village, Camarillo, and Oxnard. In the Coachella Valley, the firm represents investors throughout the Palm Springs area, covering Palm Desert, Rancho Mirage, Indian Wells, and La Quinta.

San Diego

The firm represents investors throughout San Diego County — including La Jolla, Del Mar, Rancho Santa Fe, Coronado, and Carlsbad. San Diego’s large military and veteran community and its growing biotechnology sector create distinct investor profiles and fraud patterns addressed on the San Diego page.

San Francisco and the Bay Area

In Northern California, the firm represents investors throughout the San Francisco Bay Area — including Silicon Valley, the Peninsula, Marin County, and the East Bay. Bay Area technology equity, RSU mismanagement, and private placement fraud are the most common claim types in this market.

Sacramento and the Central Valley

In the state capital and surrounding region, the firm represents investors in Sacramento — with a particular focus on state government employees and CalPERS and CalSTRS retirees whose pension rollover assets are frequently targeted. Throughout the agricultural heartland, the firm represents investors across the Central Valley — including Fresno, Bakersfield, Stockton, Modesto, and Visalia.

Central Coast — Santa Barbara, Monterey, and San Luis Obispo

Along the Central Coast, the firm represents investors in Santa Barbara and Montecito, throughout the Monterey Peninsula including Carmel-by-the-Sea and Pebble Beach, and across San Luis Obispo County — including Atascadero, Cambria, Paso Robles, Pismo Beach, Salinas, and San Luis Obispo. In Santa Barbara County, the firm also represents investors in Lompoc, Santa Maria, and Solvang in the Santa Ynez Valley.

Frequently asked questions — California investment fraud

What is the statute of limitations for investment fraud claims in California?

California investors have multiple overlapping limitations periods depending on the specific legal theory. Under FINRA Rule 12206, FINRA arbitration claims must be filed within six years of the events giving rise to the dispute. Under California Corporations Code § 25506, claims under the state securities laws must be brought within two years of discovery of the facts constituting the violation, or five years from the date of the transaction, whichever is earlier. Because the shortest applicable limitations period may control, it is critical to consult a California investment fraud attorney as soon as you suspect a problem.

What makes California securities law different from federal securities law?

California’s Corporate Securities Law of 1968 provides investors with several advantages over federal law alone. California Corporations Code § 25401 imposes liability without requiring proof of intent to deceive — a broker can be liable for an untrue statement of material fact even if the misrepresentation was negligent rather than intentional. California law also provides a rescission remedy under § 25501, allowing investors to return the investment and recover their original purchase price plus interest.

Can I file a FINRA arbitration claim in California against a broker from another state?

Yes. FINRA arbitration is a national forum and jurisdiction is based on the respondent’s FINRA membership, not their physical location. Hearings are held near the claimant’s residence — in California, at the Los Angeles or San Francisco FINRA regional office. Bakhtiari & Harrison represents California investors in claims against broker-dealers and registered representatives located anywhere in the United States.

How long does FINRA arbitration take for a California investor?

FINRA arbitration for California investors typically takes 12 to 18 months from filing to award. Cases involving larger damages, more parties, or more complex legal issues may take longer. Bakhtiari & Harrison manages the full process on behalf of California investor clients from initial filing through award.

Investor cases are handled on a contingency fee basis — no recovery, no fee.

Call: (800) 382-7969 | Contact Us