Advisor Misconduct Attorneys – Bakhtiari & Harrison
What is advisor misconduct?
Advisor misconduct occurs when a broker, financial adviser, or brokerage firm acts in a way that violates the legal and regulatory duties owed to an investor. These duties include the obligation to recommend only suitable investments, to execute transactions as authorized, to disclose material information honestly, to supervise registered representatives effectively, and to act in the client’s best interest under Regulation Best Interest. When these duties are breached, investors have the right to pursue recovery through FINRA arbitration or securities litigation.
Bakhtiari & Harrison has represented investors against every major broker-dealer in the United States. The firm brings decades of FINRA arbitration experience — including Ryan Bakhtiari’s service as Chairman of the FINRA National Arbitration and Mediation Committee — to every advisor misconduct case.
Groundbreaking results
- $54.1 million FINRA arbitration award against Citigroup Global Markets (2011): Ryan Bakhtiari served as co-lead counsel. Reported by the Wall Street Journal as the largest FINRA arbitration award ever levied against a major Wall Street brokerage in favor of individual investors. The award included $17 million in punitive damages.
- Represented multiple professional athletes defrauded by financial advisor Darryl M. Cohen, including Lauren Holiday, Jrue Holiday, Chandler Parsons, and Courtney Lee, in claims involving nearly $10 million in investment losses. An Ernst & Young report found professional athletes reported nearly $600 million in fraud-related losses from 2004 to 2019.
- $250 million+ recovered: Over four decades of FINRA arbitration and securities litigation on behalf of investors nationwide.
- Lead class action counsel: The firm and its partners have served as lead class action counsel in federal and state court.
Common advisor misconduct claims
Bakhtiari & Harrison represents investors in the following advisor misconduct claim types:
Suitability and Regulation Best Interest violations
Under FINRA Rule 2111 and Regulation Best Interest, brokers must recommend only investments that are suitable for the specific investor based on age, risk tolerance, financial situation, and investment objectives. Violations of these standards are among the most common investor claims.
Broker fraud and misrepresentation
False statements or omissions of material fact in connection with the sale of a security — actionable under California Corporations Code § 25401 and federal securities law.
Transactions executed in a client account without prior knowledge or approval.
Excessive trading and churning
Excessive trading to generate commissions at the client’s expense, without regard to the client’s investment objectives.
Failure to diversify a portfolio, exposing the client to catastrophic loss in a single security, sector, or product.
The brokerage firm’s independent liability under FINRA Rule 3110 when it fails to detect or prevent a broker’s misconduct.
Investment advisers registered as RIAs owe a fiduciary duty to their clients. Breach of this duty — including conflicts of interest, self-dealing, and failure to act in the client’s best interest — is actionable.
Direct misappropriation of client funds or securities by a registered representative.
Exploitation of elderly investors through unsuitable recommendations, unauthorized trading, variable annuity abuse, or direct theft.
Excessive or unsuitable use of margin that exposes the investor to losses beyond their stated risk tolerance.
Product failure claims
Many advisor misconduct cases involve failed investment products. Bakhtiari & Harrison represents investors in claims involving non-traded REITs, structured notes, variable annuities, private placements and alternative investments, leveraged and inverse ETFs, and the full range of securities products on the Product Failure page.
High-net-worth and sophisticated investors
Bakhtiari & Harrison has particular depth in representing high-net-worth investors — including entertainment industry professionals, business owners, executives, and family offices — whose complex financial situations make them disproportionate targets for investment fraud, unsuitable private placements, and hedge fund misconduct. All high-profile matters are handled with complete discretion.
Why choose Bakhtiari & Harrison
- $250 million+ recovered. Four decades of results for investors throughout California and nationwide.
- FINRA rulemaking experience. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee — the body that writes the rules governing FINRA arbitration. This institutional knowledge is a direct strategic advantage in every case.
- Inside knowledge of brokerage firm defenses. David Harrison spent years as Morgan Stanley in-house counsel. The firm knows how major broker-dealers build their defenses — and how to defeat them.
- Contingency fee representation. No recovery, no fee. Initial consultations are free.
Frequently asked questions — advisor misconduct
How do I know if my financial adviser committed misconduct?
Common warning signs include unexplained losses inconsistent with your stated risk tolerance, account activity you did not authorize, products you do not fully understand, resistance when you ask for clear explanations of fees and performance, and recommendations that seemed to benefit the adviser more than you. Bakhtiari & Harrison evaluates all potential claims in a free initial consultation — there is no charge to discuss your situation.
What is the deadline to file a FINRA arbitration claim for advisor misconduct?
Under FINRA Rule 12206, claims must be filed within six years of the events giving rise to the dispute. California investors may also have state law claims with shorter limitations periods — some as short as two years from discovery of the loss. Contact Bakhtiari & Harrison promptly — time limits are strictly enforced.
What is the difference between FINRA arbitration and a lawsuit?
Most brokerage account agreements require investors to resolve disputes through FINRA arbitration rather than court. FINRA arbitration is typically faster and less expensive than court litigation, and proceedings are private — not public record. Bakhtiari & Harrison represents investors in both FINRA arbitration and state and federal court securities litigation.
Does Bakhtiari & Harrison take advisor misconduct cases nationwide?
Yes. The firm represents investors in all 50 states. Ryan Bakhtiari is admitted in California, New York, Texas, the District of Columbia, and multiple federal courts. FINRA arbitration hearings are held near the claimant’s location — distance is never a barrier.
Contact a securities fraud attorney — free consultation
Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys review every potential case at no charge.
Investor cases are handled on a contingency fee basis — no recovery, no fee.
Call: (800) 382-7969 | Contact Us