When it comes to safeguarding your investments and ensuring compliance with the complex regulations governing securities, having a trusted legal partner by your side is essential. At Bakhtiari & Harrison, we focus on providing top-tier legal services as Beverly Hills FINRA Securities Attorneys.
Why Choose Bakhtiari & Harrison as Your Beverly Hills FINRA Securities Attorneys?
- Comprehensive Legal Expertise:Our team of experienced attorneys has in-depth knowledge of FINRA regulations and securities law. We handle a wide range of issues, including compliance, arbitration, litigation, and enforcement actions. Our expertise extends to representing clients in disputes involving broker-dealers, registered investment advisors (RIAs), and investors.
- Personalized Legal Strategies:At Bakhtiari & Harrison, we understand that each client’s situation is unique. We provide tailored legal strategies to meet your specific needs and objectives. Whether you are dealing with a compliance review or facing a complex arbitration case, our attorneys will craft a personalized approach to achieve the best possible outcome.
- Proven Track Record:Our Beverly Hills FINRA Securities Attorneys have a proven track record of successfully representing clients in various securities-related matters. We have secured favorable outcomes in numerous FINRA arbitration cases, ensuring that our clients’ rights and investments are protected.
- Client-Centered Approach:We prioritize our clients’ interests and work diligently to provide exceptional service. Our attorneys are committed to maintaining open lines of communication, keeping you informed at every step of the legal process. Your peace of mind and satisfaction are our top priorities.
Our Services
- FINRA Arbitration and Litigation:Our attorneys are skilled in representing clients in FINRA arbitration and litigation. We handle cases involving broker misconduct, unsuitable investment recommendations, unauthorized trading, and more. Our goal is to resolve disputes efficiently and favorably for our clients.
- Regulatory Compliance:We assist broker-dealers and RIAs in navigating the complex regulatory landscape. Our services include compliance audits, internal investigations, and representation in enforcement actions. We help ensure that your firm adheres to all applicable regulations and avoids costly penalties.
- Investor Representation:For investors who have suffered financial losses due to broker misconduct or fraudulent practices, our attorneys provide aggressive representation. We work tirelessly to recover your losses and hold wrongdoers accountable.
- Employment Matters:Our firm also specializes in employment matters within the securities industry. We handle cases involving employment agreements, compensation disputes, wrongful termination, and more. Our attorneys protect the rights of financial professionals and ensure fair treatment.
- Asset Allocation Attorneys
- Asset Theft Attorneys
- Best Interest Standard
- Breach of Fiduciary Duty Lawyers
- Employee Stock Options Law Firm
- Excessive Activity Attorneys
- Margin Trading Law Firm
- Misrepresentations & Omissions Attorneys
- Mutual Fund Fraud Lawyers
- Over-Concentration Attorneys
- Ponzi and Pyramid Schemes Lawyers
- Private Placements Law Firm
- Suitability Attorneys
- Supervision Attorneys
- Unauthorized Trading Lawyers
Understanding California Securities Code Violations in Trading Securities
In the complex world of securities trading, adherence to legal and ethical standards is paramount. California has established a robust legal framework to ensure the integrity of its financial markets and protect investors from malpractices. The following will delve into some common violations under the California Securities Code, including suitability, unauthorized trading, misrepresentations, failure to disclose, and unfair business advantage.
Suitability in California Securities Law
One of the fundamental principles under the California Securities Code is the requirement for investment advisers and brokers to ensure that their investment recommendations are suitable for their clients. According to California Corporations Code § 25216, advisers must consider the client’s financial situation, investment objectives, and risk tolerance when making recommendations. This “suitability” standard mandates a thorough understanding of the client’s needs and the characteristics of the investments being recommended.
A violation occurs when a broker or adviser recommends unsuitable investments, failing to consider the client’s unique circumstances. Such actions can lead to significant financial losses for the client and potential legal liability for the adviser. The California suitability requirement is integral to protecting investors from inappropriate and potentially harmful investment strategies.
Unauthorized Trading in California
Unauthorized trading is explicitly prohibited under California Corporations Code § 25235. This section mandates that brokers obtain explicit consent from clients before executing trades on their behalf. Unauthorized trading involves executing transactions without the client’s knowledge or approval, breaching the fiduciary duty that brokers owe to their clients.
This violation can result in severe financial consequences for the client and disciplinary action against the broker, including fines, suspension, or revocation of their license. Ensuring that clients are fully aware of and approve all transactions is critical to maintaining trust and compliance with California securities regulations.
Misrepresentations Under California Securities Law
California Corporations Code § 25401 addresses misrepresentations and omissions of material facts in the sale of securities. Brokers and advisers are prohibited from making false statements or omitting crucial information that could affect an investor’s decision-making process. Misrepresentations can include false claims about the financial health of a company, the risks associated with an investment, or the expected returns.
Investors rely on accurate and complete information to make informed decisions. Any deviation from this standard undermines market integrity and can lead to significant investor harm. Violations of California § 25401 can result in civil liabilities, including rescission of transactions and monetary damages.
Failure to Disclose Material Information
Failure to disclose material information is closely related to misrepresentations and is governed by the same section, California Corporations Code § 25401. This provision requires full and fair disclosure of all relevant information that an investor would need to make an informed decision. Failure to disclose such information is considered fraudulent and deceptive.
Material information can include details about the financial performance of an investment, potential conflicts of interest, or any other fact that could influence an investor’s decision. Transparency is essential in the securities industry, and failure to uphold this standard can lead to legal action and penalties.
Unfair Business Advantage in California
Unfair business practices in the securities industry are addressed under California’s Unfair Competition Law (UCL), Business and Professions Code § 17200. This broad provision prohibits any unlawful, unfair, or fraudulent business acts or practices, including those in the securities sector.
Unfair business advantage can manifest in various forms, such as insider trading, market manipulation, or exploiting non-public information for personal gain. These practices undermine market fairness and investor confidence. Violations of California § 17200 can result in injunctions, restitution, and civil penalties, providing robust protection for investors and maintaining market integrity.
Common Code Violations in Trading Securities
Several other common violations under the California Securities Code relate to trading securities, including:
- Churning: Excessive trading in a client’s account primarily to generate commissions for the broker, violating fiduciary duties as outlined in California Corporations Code § 25218.
- Front-Running: Brokers executing orders on a security for their own account while taking advantage of advance knowledge of pending orders from their customers, which can violate California Corporations Code § 25216(a).
- Ponzi Schemes: Investment frauds that pay returns to earlier investors from the new capital contributed by newer investors, rather than from profit earned, falling under fraudulent schemes addressed by California Corporations Code § 25401.
- Insider Trading: Trading a public company’s stock or other securities based on material, non-public information about the company, violating fair market practices as described in California Corporations Code § 25502.
- Failure to Supervise: Supervisors failing to adequately oversee the actions of brokers, leading to various forms of misconduct, which is addressed under California Corporations Code § 25216(c).
If you are in need of a Beverly Hills, California FINRA Securities Attorney, look no further than Bakhtiari & Harrison. Our dedicated team is here to provide the legal support and expertise you need to protect your investments and navigate the securities industry with confidence.
Visit our website to learn more about our services and to schedule a consultation with one of our experienced attorneys. Trust Bakhtiari & Harrison to be your partner in securities law. We are located in the iconic Bank of America building, in the triangle of Beverly Hills on the southeast corner of Wilshire Blvd. and Beverly Drive, just two blocks east of Rodeo Drive and near the Beverly Hills office of Merrill Lynch, our firm is ideally positioned to serve your legal needs.
We represent victims of financial and investment fraud throughout California, including Beverly Hills, Hidden Hills, Los Angeles, Orange County, Pacific Palisades, Palm Springs, Pasadena, San Diego, San Francisco, and other locations. We will work tirelessly in pursuit of financial compensation for your investment losses.