Securities Fraud Attorneys — Bakhtiari & Harrison
Written and reviewed by
Ryan Bakhtiari, Partner — Bakhtiari & Harrison
Admitted: CA | NY | TX | DC | Multiple Federal Courts · Super Lawyers 2005–2026 · Former PIABA President · Former FINRA NAMC Chairman · Last reviewed: May 2026
Bakhtiari & Harrison represents investors who have suffered losses from securities fraud — including Ponzi schemes, pump and dump fraud, misrepresentation by broker-dealers, and investment fraud perpetrated by financial advisors and promoters. Securities fraud claims against FINRA-registered broker-dealers are prosecuted in FINRA arbitration. Claims against investment promoters, fund managers, and non-FINRA parties are pursued in federal and state court. The firm has recovered more than $250 million for clients over four decades. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee from 2013 to 2017 and as President of PIABA. Partner David Harrison is a former New York City assistant district attorney with direct experience prosecuting financial crime. Investor cases are handled on a contingency fee basis — no recovery, no fee.
What is securities fraud?
Securities fraud is any deceptive practice in connection with the purchase or sale of securities that causes investor losses. It is actionable under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 — the primary federal anti-fraud provisions — as well as under FINRA rules and state securities laws. Securities fraud encompasses a wide range of conduct: from Ponzi schemes that fabricate returns entirely, to broker misrepresentation that overstates an investment’s potential while concealing its risks, to corporate accounting fraud that inflates a company’s financial results to support a higher stock price.
The common element is a material misrepresentation or omission — a false statement or a failure to disclose important information — made in connection with a securities transaction, upon which the investor reasonably relied to their financial detriment.
Types of securities fraud Bakhtiari & Harrison handles
Ponzi and pyramid schemes
Ponzi schemes pay returns to existing investors from the capital contributed by new investors rather than from any genuine investment activity. They appear profitable until the flow of new investor capital slows — at which point they collapse, typically destroying the principal of the most recent investors entirely. When a Ponzi scheme is sold through FINRA-registered broker-dealers, investors may have claims against both the scheme promoter and the selling broker for failure to conduct adequate due diligence. For more on Ponzi scheme claims visit the Ponzi Schemes page.
Broker misrepresentation and omission
The most common form of securities fraud in FINRA arbitration is misrepresentation by a registered broker — overstating expected returns, understating risks, mischaracterizing liquidity, or concealing conflicts of interest. These claims are pursued through FINRA arbitration against the selling broker-dealer. For more on broker misrepresentation claims visit the Broker Fraud and Broker Misconduct pages.
Pump and dump fraud
Pump and dump schemes involve artificially inflating the price of a security through false or misleading statements — typically through social media, email campaigns, or paid promotional content — and then selling the inflated shares at a profit, leaving retail investors with worthless stock. Retail investors who purchased securities in pump and dump schemes have claims under Section 10(b) and Rule 10b-5 against the scheme promoters and, where applicable, the broker-dealers who facilitated the transactions.
Investment fund fraud
Hedge fund fraud, private equity fraud, and other investment fund schemes involve misrepresentation of strategy, performance, fees, and liquidity by fund managers. When these funds are recommended by FINRA-registered broker-dealers, both the fund manager and the selling broker-dealer may face liability. For more on hedge fund fraud claims visit the Hedge Funds page.
Private placement fraud
Unregistered securities sold under Regulation D are among the most consistently misrepresented investment products in the retail market. Private placement fraud involves misrepresentation of the offering’s financial projections, use of proceeds, management credentials, or risk profile. FINRA arbitration claims are available against the selling broker-dealer for failure to conduct adequate due diligence on the offering.
Affinity fraud
Affinity fraud targets members of identifiable communities — religious groups, ethnic communities, professional associations, or social networks — exploiting the trust relationships within those groups to promote fraudulent investment schemes. Affinity fraud victims often delay reporting because of reluctance to harm a trusted community member. Bakhtiari & Harrison has represented affinity fraud victims in FINRA arbitration and federal court proceedings.
Securities fraud recovery paths
FINRA arbitration — claims against broker-dealers
When securities fraud is committed by or through a FINRA-registered broker-dealer, the investor’s primary recovery path is FINRA arbitration. FINRA arbitration is faster and less expensive than court litigation, and awards are final and enforceable in federal court. Bakhtiari & Harrison manages the complete FINRA arbitration process on behalf of securities fraud victims.
Federal court litigation — claims against non-FINRA parties
When securities fraud is committed by investment promoters, fund managers, corporate insiders, or other parties who are not FINRA members, claims are pursued in federal court under Section 10(b) and Rule 10b-5. Bakhtiari & Harrison handles both FINRA arbitration and federal court securities fraud litigation, and where appropriate pursues parallel proceedings against multiple defendants.
SEC and FINRA whistleblower programs
Investors with information about securities fraud may be eligible for financial awards through the SEC’s whistleblower program — which pays 10-30% of sanctions over $1 million collected by the SEC based on original information. Bakhtiari & Harrison evaluates whistleblower referrals as part of its securities fraud practice. For more on whistleblower representation visit the Registered Persons page.
David Harrison’s prosecutorial background
David Harrison served as a New York City assistant district attorney before his career in securities law — prosecuting financial crime from the government’s perspective before moving to Morgan Stanley Dean Witter as in-house counsel. This prosecutorial background gives him a direct understanding of how securities fraud investigations are conducted, how evidence is gathered and presented, and how fraud schemes are structured to deceive investors. It is a credential that no amount of civil securities practice can replicate.
Frequently asked questions — securities fraud
What is the difference between securities fraud and broker misconduct?
Broker misconduct covers the full range of violations by registered brokers — suitability violations, unauthorized trading, churning, and misrepresentation. Securities fraud is a specific subset involving intentional deception — a material misstatement or omission made with the intent to deceive. In practice the distinction matters because securities fraud claims have a higher burden of proof (requiring proof of intent) but may support stronger damages including punitive damages. Many FINRA arbitration claims plead both broker misconduct and securities fraud theories. Bakhtiari & Harrison evaluates which theories best fit the specific facts of each case.
How long do I have to bring a securities fraud claim?
Federal securities fraud claims under Section 10(b) must be filed within two years of discovery of the fraud and no more than five years after the violation. FINRA arbitration claims must be filed within six years of the events giving rise to the dispute. State law securities fraud claims may have different periods. Because multiple overlapping deadlines may apply, contact Bakhtiari & Harrison promptly — the shortest applicable deadline governs.
Can I bring a securities fraud claim even if the fraudster has been criminally charged?
Yes — civil and criminal proceedings are independent. A criminal conviction or SEC enforcement action against the fraudster does not automatically compensate civil victims. Bakhtiari & Harrison pursues civil recovery through FINRA arbitration and federal court litigation parallel to and independent of any criminal or regulatory proceedings.
What if the securities fraud was committed by someone I trusted personally?
Affinity fraud — fraud committed by someone within a trust relationship — is actionable on the same legal theories as any other securities fraud. The personal relationship does not reduce the fraudster’s legal liability. Bakhtiari & Harrison has represented affinity fraud victims and understands the specific challenges these cases present, including the reluctance to pursue claims against community members. All consultations are confidential and free.
Contact a securities fraud attorney — free consultation
Contact Bakhtiari & Harrison for a free, confidential evaluation of your securities fraud claim. Our FINRA attorneys evaluate every potential investor claim at no charge. Investor cases are handled on a contingency fee basis — no recovery, no fee.
Investor cases are handled on a contingency fee basis — no recovery, no fee.
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