Blog
June 21, 2024
Registered representatives in the securities industry play a crucial role in guiding clients through complex financial landscapes, helping them make informed decisions about their investments. Despite their best efforts, these professionals can sometimes face frivolous claims from clients. Such claims, even when baseless, can tarnish a registered representative’s record on BrokerCheck, potentially impacting their career […]
June 20, 2024
In the ever-evolving landscape of financial planning, premium financing has emerged as a strategy that some high-net-worth individuals and businesses use to pay for substantial life insurance policies without liquidating their assets. While this approach can appear attractive, it carries significant risks and potential pitfalls that investors should carefully consider. The allure of retaining cash […]
June 19, 2024
Errors and Omissions (E&O) insurance is a critical component of risk management for financial advisors. This specialized form of liability insurance protects advisors from claims of negligence, mistakes, or omissions in the professional services they provide. Here, we discuss various aspects of E&O insurance that financial advisors should consider to ensure comprehensive coverage. The Importance […]
June 18, 2024
In recent years, Wells Fargo Advisors has faced significant scrutiny and legal action for its role in a widespread fraudulent scheme to open unauthorized customer accounts. This scandal not only impacted countless customers but also led to the unfair termination of numerous financial advisors and bankers. At Bakhtiari & Harrison, we are dedicated to defending […]
June 17, 2024
For stock brokers, purchasing a retiring broker’s book of business can be a strategic move to expand their client base and increase assets under management (AUM). However, this process involves careful consideration of various factors to ensure a successful transition. In this post, we will discuss the critical elements to consider when evaluating the selling […]
June 16, 2024
Learning about the stock market and understanding how to invest for your future is a smart financial decision. The earlier you start, the more likely you are to meet your financial goals, whether it’s saving for college, buying a home, or planning for retirement. Teens, don’t dismiss this because these goals may seem far off. […]
June 15, 2024
Elder Abuse Awareness Day, observed annually on June 15th, is a critical opportunity to shed light on the unfortunate and often underreported issue of elder abuse. At Bakhtiari & Harrison, we are committed to protecting the most vulnerable members of our society, particularly senior citizens who may fall victim to financial exploitation by unscrupulous financial […]
Colorado investment fraud attorneys at Bakhtiari & Harrison are focused on the representation of Colorado based clients in complex arbitration, litigation, and related legal services in matters involving the securities industry. The firm’s partners have extensive experience in securities, employment and regulatory matters. Our focus is on delivering strategic and creative client-centric solutions. Colorado Investment […]
June 14, 2024
For financial advisors, achieving client goals requires more than investment expertise. It involves a thorough understanding of each client’s unique financial situation, continuous communication, and diligent portfolio management. A key aspect of this process is ensuring that a client’s material information, such as income, net worth, age, and life changes, is regularly updated and accurately […]
June 13, 2024
In April 2022, the investment landscape shifted dramatically when GWG Holdings declared bankruptcy, significantly impacting investors, particularly those with GWG L Bonds. At Bakhtiari & Harrison, a leading law firm in Beverly Hills foucsing on FINRA arbitrations, we are dedicated to offering our expertise, guidance and robust representation to investors adversely affected by these events. […]
June 12, 2024
In the rapidly evolving landscape of financial services, maintaining compliance with regulatory standards is paramount. For FINRA registered persons, the use of text messages to communicate with clients presents significant challenges from a compliance standpoint. At Bakhtiari & Harrison, our experienced FINRA securities attorneys emphasize the importance of adhering to best practices to mitigate these […]
The FINRA Investor Education Foundation (FINRA Foundation) has released a new report, The machines are coming (with personal finance information). Do we trust them? This report highlights the intersection of technology and Financial literacy. As the landscape of personal finance evolves, understanding the role of technology, including artificial intelligence, becomes increasingly essential for consumers. The integration […]
June 11, 2024
Interest rates are a critical lever in the economic machinery, influencing a myriad of financial and economic variables. Over the past few years, fluctuations in interest rates have had profound effects on various sectors, including the stock market, real estate (both commercial and residential), derivatives, and startups. This report provides a detailed and sophisticated analysis […]
June 7, 2024
As a FINRA-registered representative, it’s crucial to understand when a customer complaint necessitates a disclosure and when it does not. Many firms, unfortunately, adopt a blanket policy of filing a disclosure for every complaint received, without considering whether it meets the specific criteria set by FINRA Rule 4530 and Form U4. This over-cautious approach can […]
June 6, 2024
When a financial advisor recommends taking a portfolio margin loan, there are several potential problems and risks that clients should be aware of: Problems Increased Risk: Market Volatility: Portfolio margin loans amplify the effects of market movements. While gains can be larger, losses can also be magnified, leading to significant financial risk. Margin Calls: If […]
June 5, 2024
In the high-stakes world of finance, women continue to break barriers and excel as stock brokers and financial advisors. Yet, despite their significant contributions, many women in the industry face a pervasive issue: sexual harassment. When brokerage firms fail to prevent wrongful conduct or lack appropriate compliance resources, it can create a hostile work environment […]
June 4, 2024
Variable annuities are a popular investment product that combines the potential for market-based returns with the security of an insurance policy. While they can offer significant benefits for retirement planning, they also come with a range of costs, fees, and risks that investors need to be aware of. This blog aims to provide a comprehensive […]
June 3, 2024
Real Estate Investment Trusts (REITs) offer a way for investors to gain exposure to real estate without the need to directly own, manage, or finance properties. While many are familiar with publicly traded REITs, private REITs like the Blackstone Real Estate Income Trust (BREIT) also play a significant role in the real estate market. What […]
Navigating the securities brokerage industry requires registered representatives (RRs) to manage a host of legal and financial documents. Among these, promissory notes are particularly significant yet often misunderstood. These notes, frequently utilized by brokerage firms, carry considerable implications for the RRs who sign them. Understanding the details of these promissory notes, including their terms, conditions, […]
June 1, 2024
Written and reviewed by David Harrison, Partner — Bakhtiari & Harrison Admitted: CA | NY · Super Lawyers · Former NYC Assistant District Attorney · Former Morgan Stanley In-House Counsel · Series 7 Licensed · Last reviewed: May 2026 First Republic Bank’s preferred shares were noncumulative — meaning if the bank suspended dividends and later […]
If you have suffered investment losses in HPI Real Estate Opportunity Fund IV or other real estate private equity investment funds and 1031 Delaware Statutory Trust (DST) programs from Hamilton Point Investments, LLC, Bakhtiari & Harrison can help you explore your legal options. Why Choose Bakhtiari & Harrison to Pursue HPI Real Estate Fund Losses? […]
Are You a Victim of Aegis Capital Corp.? We all know there are inherent risks in investing in the stock market. But then there are avoidable risks. This is especially true when dealing with Aegis Capital Corp. Many investors have faced problems with this company. At Bakhtiari & Harrison, we help investors recover money defrauded […]
May 31, 2024
At Bakhtiari & Harrison, we are committed to safeguarding the interests of investors, particularly senior citizens who require preservation of capital and liquidity. Recently, we have launched investigations into several Non-Traded REITs also known as Real Estate Investment Trusts that have come under scrutiny due to significant redemption issues and potential misrepresentations by brokerage firms. […]
May 30, 2024
Alternative investments, which encompass a wide range of assets such as hedge funds, private equity, real estate, commodities, and more, are becoming increasingly popular among investors seeking diversification and higher returns. However, these investments also come with unique risks and complexities that require careful consideration. In this blog, we will explore the primary concerns investors […]
May 29, 2024
Bakhtiari & Harrison are investigating Theresa Allen (CRD# 2183693) of First Republic Securities Company and RBC Capital Markets in connection with a customer complaint alleging damages due to unsuitable investment recommendations and/or investor concentration in First Republic Bank preferred stock. Written and reviewed by Ryan Bakhtiari, Partner — Bakhtiari & Harrison Admitted: CA | NY […]
Split dollar insurance is a unique financial arrangement that has gained popularity in corporate and estate planning circles. It’s a flexible and strategic method used by businesses and individuals to manage life insurance policies, offering a range of benefits to both employers and employees. In this comprehensive guide, we’ll delve into the mechanics of split […]
May 28, 2024
It is critical to have an experienced securities attorney review employment related documents. When stockbrokers receive a promissory note or employment forgivable loan proposal from a broker-dealer, it’s crucial to understand that these documents are more than just formalities—they are binding legal contracts with significant financial and professional implications. Signing without a thorough review can […]
May 27, 2024
In the world of investment advisory, the relationships between Registered Investment Advisors (RIAs) and their clients are governed by a series of complex and highly detailed agreements. These documents outline everything from investment objectives to risk tolerance and time horizons, serving as the foundation for the fiduciary relationship between advisors and their clients. Ensuring these […]
May 26, 2024
Board Approves 2023 Annual Financial Report, Adds New Members to Advisory Committees, and Discusses Advanced Analytics Strategic Initiative The FINRA Board of Governors convened for their second meeting of the year on May 8-9, 2024. Key decisions and updates included the approval of the 2023 Annual Financial Report, appointment of new Advisory Committee members, and […]
There are over 18 million veterans in the United States, making them prime targets for fraud. Fraudsters often target groups with shared backgrounds and interests, making veterans and their families vulnerable to investment scams. Some scammers may even pretend to be veterans themselves. Recognizing Fraudulent Investment Schemes Investment fraud comes in many forms, with scammers […]
May 25, 2024
The Financial Industry Regulatory Authority (FINRA) has issued an AWC (Acceptance, Waiver, and Consent) against Juan Carlos Sosa (CRD #4059846), barring him from association with any FINRA member in all capacities. This action comes after Sosa was found to have converted over $331,000 from an elderly customer for his personal use. The case highlights a […]
Bakhtiari & Harrison is currently investigating brokers nationwide who recommended their clients invest in iCap Equity, LLC. This high-risk Regulation D private placement was unsuitable for many investors. iCap Equity, LLC Private Placement Losses Regulation D private placements, like those from iCap Equity, LLC, are often not suitable for conservative and inexperienced investors. Unfortunately, many […]
May 24, 2024
Investing is a significant financial decision, and choosing the financial advisor is paramount to safeguarding your investments. Due Diligence of Financial Advisors Is a Key First Step in the Hiring Process Due diligence is not just recommended; it is essential in today’s complex financial marketplace. The Financial Industry Regulatory Authority (FINRA) provides a vital due […]
May 23, 2024
David Harrison, a distinguished attorney now affiliated with FINRA securities arbitration firm of Bakhtiari & Harrison, recently secured a significant victory in a FINRA arbitration case involving the expungement of a customer dispute from a registered representative’s BrokerCheck records. This case underscores the importance of robust legal representation in protecting the professional reputations of financial […]
May 22, 2024
When starting a new position as a stockbroker, it’s crucial to understand the details of your employment agreement. This document outlines the terms and conditions of your employment and can have a significant impact on your career. One way to ensure that your interests are protected is by having a competent securities attorney, who is […]
May 20, 2024
As a registered representative, your professional reputation is paramount. Unfortunately, frivolous complaints can tarnish your record, affecting your career and client relationships. Understanding your options for removing such complaints is crucial. At Bakhtiari & Harrison, we are here to guide you through this complex process, including navigating FINRA Rule 2080 and recent changes in expungement […]
May 19, 2024
A recent opinion piece in Investment News raises questions about the valuation practices of Blackstone Real Estate Income Trust Inc. (BREIT). Nontraded REITs often rely on internally determined valuations, leading to opacity and potential discrepancies in value. Despite concerns about the broader commercial real estate market, BREIT’s net asset value (NAV) has remained high, raising […]
The U.S. Securities and Exchange Commission (SEC) is a cornerstone of the American financial system, tasked with a critical three-part mission: Protect Investors Maintain Fair, Orderly, and Efficient Markets Facilitate Capital Formation The Genesis of the SEC The SEC was born out of necessity during one of the darkest periods in American economic history. When […]
May 18, 2024
In today’s digital age, the use of social media and instant messaging apps like WhatsApp has become ubiquitous. Registered representatives, who are responsible for managing client investments and maintaining compliance with financial regulations, face unique challenges when it comes to using these platforms to communicate with customers. While these tools can enhance client engagement and […]
May 16, 2024
Investing in penny stocks can be alluring, especially with promises of significant returns. However, these investments come with high risks. When a financial advisor recommends venturing into such speculative investments, it’s crucial to proceed with caution. This blog post explores the critical steps you should take to safeguard your financial portfolio when faced with recommendations […]
May 14, 2024
In today’s financial landscape, understanding the rules and regulations that govern the interactions between brokerage firms and their customers is crucial for both parties. The Financial Industry Regulatory Authority (FINRA) and its Regulation Best Interest (Reg BI) have been pivotal in ensuring that the financial advice and products offered to customers are in their best […]
May 13, 2024
In the intricate world of investing, the relationship between a stockbroker and their client is built on a foundation of trust, transparency, and adherence to legal and ethical standards. An essential aspect of this professional conduct is the prohibition against stockbrokers borrowing money from their clients. This practice is not only frowned upon but is […]
May 10, 2024
The world of private real estate REITs (Real Estate Investment Trusts) is enticing for investors seeking diversification and steady returns. However, significant dangers inherent in this investment class can have severe consequences for those who are unprepared. This blog aims to illuminate the critical risks associated with private REITs, particularly in due diligence, financial transparency, […]
May 6, 2024
Real Estate Investment Trusts (REITs), a key player in the real estate sector, offer the investing public shares, either through public stock exchanges or as privately held entities. REITs uniquely manage income-producing real estate and are obligated by law to distribute most of their taxable income as dividends to shareholders annually. This setup makes REITs […]
May 5, 2024
Understanding Your Legal Rights After GWG Holdings’ Bankruptcy In April 2022, the financial landscape for many investors changed drastically when GWG Holdings filed for bankruptcy. Particularly impacted were those invested in GWG L Bonds, which have since become notably problematic. At Bakhtiari & Harrison, a premier law firm located in Beverly Hills focusing on FINRA […]
May 4, 2024
Navigating the complexities of Registered Investment Advisor (RIA) fraud requires a law firm with a deep understanding of the financial and legal intricacies involved. Bakhtiari & Harrison has built a robust reputation for effectively handling cases related to RIA fraud, making them a top choice for clients seeking justice in securities industry disputes. Their approach […]
May 3, 2024
In the sophisticated arena of investment adviser management, adviser fraud is a serious concern that can undermine trust and cause substantial financial damage to investors. At the forefront of tackling these complex issues is Bakhtiari & Harrison, a law firm known for its focus on securities industry disputes, particularly those involving Investment Adviser fraud. Their […]
April 4, 2024
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 · First Republic Bank failed in May 2023 and was acquired by JPMorgan Chase — leaving thousands of investors […]
April 1, 2024
The Financial Industry Regulatory Authority (FINRA) has announced disciplinary action against Matt Ward (CRD #2075525), fining him $5,000 and suspending him from association with any FINRA member in all capacities for 15 business days. This action follows findings that Ward exercised discretion in customer accounts without obtaining the necessary written authorization. Background and Findings Concerning […]
March 24, 2024
Four Professional Basketball Players Defrauded of Over $13 Million Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a six-count Indictment charging DARRYL COHEN, BRIAN […]
