Hawaii Investment Fraud Lawyers & FINRA Attorneys

Investment fraud lawyers serving Hawaii investors

Hawaii’s investor community reflects the distinctive characteristics of an island economy at the crossroads of North American and Asia-Pacific financial markets. Honolulu — home to the majority of the state’s population and economic activity — has a large community of government employees, military personnel, healthcare professionals at the Queen’s Medical Center and Hawaii Pacific Health systems, and technology and financial services professionals whose investment accounts are managed through the same national broker-dealer networks that generate FINRA arbitration claims throughout the continental United States.

The state’s tourism-driven economy creates specific private placement fraud exposure. Real estate and hospitality investment opportunities — hotel development projects, vacation rental programs, timeshare schemes, and resort development funds — are consistently marketed to Hawaii investors through industry and community networks. These investments frequently involve misrepresented return projections, undisclosed conflicts of interest between developers and promoters, and inadequate disclosure of the illiquidity and risk associated with private real estate securities.

Hawaii’s significant retirement and second-home community draws wealthy mainland investors whose transferred accounts and retirement distributions are targeted at transition points. The geographic isolation of the Hawaiian Islands from mainland financial centers creates additional vulnerability — investors who cannot easily access in-person alternative advisers are more dependent on the broker relationship and less likely to seek second opinions on recommendations. The military communities at Pearl Harbor, Schofield Barracks, and other installations add a significant investor demographic whose TSP and military retirement assets face specific rollover mismanagement exposure.

Investment fraud and misconduct claims we handle

• Unsuitable investment recommendations: recommendations inconsistent with the investor’s risk tolerance, financial situation, or objectives violate FINRA Rule 2111 and Regulation Best Interest.
• Broker fraud and misrepresentation: material misstatements and omissions in connection with investment recommendations are actionable under federal securities law and FINRA rules.
• Unauthorized trading: executing transactions without prior client authorization violates the account agreement and FINRA rules.
• Churning and excessive trading: excessive trading to generate commissions at the investor’s expense is a suitability violation.
• Overconcentration: failing to maintain adequate diversification in a single security, sector, or product.
• Variable annuity and product fraud: unsuitable recommendations of variable annuities, non-traded REITs, structured notes, leveraged ETFs, and private placements.
• Elder financial fraud: exploitation of elderly investors subject to enhanced liability under state and federal statutes.
• Failure to supervise: brokerage firms bear independent liability under FINRA Rule 3110 when supervisory failures allow broker misconduct to cause investor harm.

Why choose Bakhtiari & Harrison as your Hawaii investment fraud lawyers

• $250 million+ recovered. Four decades of results for investors in FINRA arbitration and securities litigation nationwide.
• Former FINRA NAMC Chairman. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee from 2013 to 2017.
• Former Morgan Stanley in-house counsel. David Harrison spent years as Morgan Stanley Dean Witter in-house counsel and began his career as a Series 7-licensed representative at Shearson Lehman Brothers.
• Dedicated experience in FINRA arbitration. Selecting counsel with specific FINRA arbitration expertise is the single most important decision an investor claimant makes. Bakhtiari & Harrison’s practice is dedicated to investor-side FINRA arbitration and securities litigation — not general practice.
• FINRA hearings near you. FINRA arbitration hearings are held at the venue nearest the claimant’s residence.
• Contingency fee representation. No recovery, no fee. Initial consultations are free.

Unauthorized Trading under Hawaii Securities Law

Hawaii Uniform Securities Act (HRS § 485A-501) also prohibits unauthorized trading. Brokers must secure client consent before executing any trades. Violations can result in criminal penalties, fines, and the potential loss of licensure.

Misrepresentations Under Hawaii Securities Law

Similarly, under the Hawaii Uniform Securities Act (HRS § 485A-501), it is unlawful for any person to misrepresent or omit material facts in connection with the sale of securities. This includes false statements about the value or safety of an investment. Violations can lead to severe penalties, including fines and imprisonment. Hawaii’s Hawaii Uniform Securities Act (HRS § 485A-501) also mandates full disclosure of all material information to investors. Failure to disclose can result in criminal and civil penalties, aiming to protect investors from fraud and deception. Hawaii investment fraud lawyers of Bakhtiari & Harrison investigate and prosecute misrepresentation claims.

Unfair Business Advantage under Hawaii Securities Laws

In Hawaii, similar protections are provided under the Hawaii Deceptive Trade Practices Act (HRS § 481A), which prohibits deceptive acts and practices in the conduct of business, including securities trading. Hawaii investment fraud lawyers of Bakhtiari & Harrison investigate and prosecute claims of insider trading, market manipulation, and other unfair practices.

For Honolulu-specific coverage visit the Honolulu Investment Fraud Lawyers page.

Frequently asked questions — Hawaii investment fraud lawyers

Do I need a local Hawaii attorney to bring a FINRA arbitration claim?

No. FINRA arbitration is a national forum — hearings are held at the venue nearest the claimant’s residence, not at the attorney’s office. The most important factor in selecting counsel is specific FINRA arbitration expertise, not geographic proximity. Bakhtiari & Harrison has represented Hawaii investors for decades. Selecting counsel based on FINRA arbitration experience rather than local presence is the decision that most affects your outcome.

How much does it cost to hire Bakhtiari & Harrison for a Hawaii investment fraud claim?

Nothing upfront. Bakhtiari & Harrison represents Hawaii investor claimants on a contingency fee basis — paid only as a percentage of what the firm recovers, and only if it recovers. If no recovery is made, the client owes nothing. The initial consultation is completely free.

How long does FINRA arbitration take for a Hawaii investor?

Standard FINRA arbitration cases take 12 to 18 months from filing the Statement of Claim through the award. Cases with larger damages, multiple parties, or complex financial products sometimes take longer. FINRA’s simplified arbitration — for claims under $50,000 — resolves more quickly. Bakhtiari & Harrison manages every procedural step and keeps Hawaii clients informed throughout the process.

Should I check my Hawaii broker on FINRA BrokerCheck before filing a claim?

Yes. BrokerCheck at brokercheck.finra.org is free and shows a broker’s complete registration history, employment record, and all disclosed customer complaints, regulatory actions, and criminal proceedings. Prior complaints involving similar conduct strengthen your claim and may support punitive damages. Bakhtiari & Harrison reviews BrokerCheck records in every initial case evaluation.

Contact our Hawaii investment fraud lawyers — free consultation

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys evaluate every potential Hawaii investor claim at no charge. Investor cases are handled on a contingency fee basis — no recovery, no fee. Contact us today.

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

Call: (800) 382-7969 | Contact Us