California Investment Fraud Lawyers & FINRA Attorneys

Bakhtiari & Harrison are California investment fraud lawyers representing investors in FINRA arbitration and securities litigation throughout the state. The firm is headquartered in Los Angeles and is admitted in California, New York, Texas, and the District of Columbia. Over four decades, Bakhtiari & Harrison has recovered more than $250 million for clients, including a $54 million FINRA arbitration award against Citigroup — the largest FINRA award of 2011.

Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee and as President of PIABA. Partner David Harrison is a former New York City assistant district attorney and ex-Morgan Stanley in-house counsel who began his career as a Series 7-licensed registered representative at Shearson Lehman Brothers. Investor cases are handled on a contingency fee basis — no recovery, no fee. Initial consultations are free.

Why California investors need an experienced securities attorney

California is home to more registered investment advisers, broker-dealers, and FINRA-registered representatives than any other state. The concentration of wealth in markets such as Los Angeles, San Francisco, Silicon Valley, and San Diego — combined with the density of financial product distribution networks — means California investors are disproportionately exposed to investment fraud, unsuitable recommendations, and broker misconduct.

California also maintains its own investor protection layer on top of federal law. The California Department of Financial Protection and Innovation (DFPI) enforces the California Corporations Code alongside federal regulators. California Corporations Code § 25401 prohibits misrepresentations and omissions of material fact in securities transactions. California Corporations Code § 25235 prohibits unauthorized trading. California Corporations Code § 25218 addresses churning and fiduciary violations. These state law claims can be brought in FINRA arbitration or in state court, and in many cases they expand the remedies available beyond what federal law alone provides.

A securities attorney with California-specific experience understands how to deploy both federal and state law claims together — and how to navigate the FINRA arbitration process in California’s regional hearing locations.

What Bakhtiari & Harrison’s California investment fraud lawyers do

Bakhtiari & Harrison represents two distinct client groups across California, each with different legal needs.

For investors who have suffered losses

The firm files and prosecutes FINRA arbitration claims against California-based and national broker-dealers on behalf of investors who have suffered losses caused by broker fraud, unsuitable investment recommendations, unauthorized trading, misrepresentation, churning, overconcentration, and failure to supervise.

For financial professionals facing career threats

The firm also represents registered representatives, brokers, and RIAs based in California who face customer complaints, FINRA regulatory investigations, CRD expungement needs, U5 defamation claims, compensation disputes, and promissory note defenses.

California investor claims — the legal framework

Investment fraud and broker misconduct claims in California are governed by a combination of FINRA rules, federal securities law, and California state law. The following are the most common legal theories Bakhtiari & Harrison uses to pursue recovery for California investors.

Suitability and Regulation Best Interest

FINRA Rule 2111 requires that any investment recommendation be suitable for the specific customer based on their age, risk tolerance, financial situation, investment objectives, and investment experience.

Unauthorized trading — California Corporations Code § 25235

California law explicitly prohibits brokers from executing trades without the client’s prior consent. Unauthorized trading occurs when a broker places transactions in a client’s account without authorisation — regardless of whether those trades were profitable. If you see account activity you did not approve, you may have an actionable claim under California Corporations Code § 25235 and FINRA Rule 2010.

Misrepresentation and material omission — California Corporations Code § 25401

California Corporations Code § 25401 prohibits any person from making an untrue statement of material fact, or omitting a material fact, in connection with the purchase or sale of a security. This state law claim runs parallel to Section 10(b) of the Securities Exchange Act and Rule 10b-5, but California’s remedies — including rescission — can be more favorable to investors in certain cases.

Churning — California Corporations Code § 25218

Churning occurs when a broker executes an excessive number of trades in a client’s account primarily to generate commissions rather than to serve the client’s investment objectives.

Failure to supervise

Brokerage firms operating in California have an independent legal duty under FINRA Rule 3110 to supervise their registered representatives.

The FINRA arbitration process in California — step by step

1. File a Statement of Claim. The process begins when Bakhtiari & Harrison files a Statement of Claim with FINRA on your behalf. The claim sets out the facts, the legal theories, and the damages you are seeking. The respondent — typically the brokerage firm and the individual broker — has 45 days to answer.
2. Select the arbitration panel. For claims over $100,000, a three-arbitrator panel is appointed. The selection process involves ranking lists of candidates. Bakhtiari & Harrison has appeared before California-based FINRA arbitrators for decades and brings deep familiarity with the regional arbitrator pool.
3. Complete discovery. Both sides exchange documents and information relevant to the claim. In FINRA arbitration, discovery is more streamlined than in court, but account statements, trade confirmations, suitability questionnaires, internal firm communications, and supervisory records are all typically produced.
4. Attend pre-hearing conferences. A FINRA case administrator will schedule pre-hearing conferences to set the hearing schedule, resolve procedural disputes, and narrow the issues for the arbitrators.
5. Present your case at the hearing. Both sides present evidence, call witnesses, and cross-examine opposing witnesses before the arbitration panel. Bakhtiari & Harrison’s attorneys are experienced FINRA hearing advocates who have tried complex securities cases to conclusion.
6. Receive the award. After the hearing, the panel issues a written award — typically within 30 days. FINRA arbitration awards are binding and enforceable in California state and federal courts.

Why choose Bakhtiari & Harrison for a California investment fraud case

• $250 million+ recovered. Four combined decades of FINRA arbitration results for investors across California and the nation.
• $54 million Citigroup award. The largest FINRA arbitration award of 2011.
• FINRA leadership. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee and as President of PIABA — the national association of attorneys who represent investors in FINRA arbitration.
• California Corporations Code expertise. The firm understands how to layer California state law claims alongside federal claims to maximise recovery options.
• Contingency fee representation for investors. Investor cases are handled on a contingency fee basis. If there is no recovery, there is no fee. Initial consultations are free.
• Statewide reach. Bakhtiari & Harrison represents California investors from San Diego to the Central Valley to the San Francisco Bay Area, and every community in between.

California locations — find your city

Bakhtiari & Harrison represents investors throughout California. Select your location below for city-specific information about investment fraud representation in your area.

If your city or region is not listed above, contact Bakhtiari & Harrison directly. The firm represents California investors on a statewide basis regardless of location.

Contact Bakhtiari & Harrison — free consultation

California Investment Fraud Lawyers