Family Office Attorney — Securities & Investment Disputes – Bakhtiari & Harrison

Securities dispute representation for family offices

Family offices — both single-family and multi-family — manage significant pools of capital on behalf of high-net-worth and ultra-high-net-worth families. Their combination of substantial investable assets, sophisticated financial structures, and trusted adviser relationships makes them a prime target for investment fraud, unsuitable product recommendations, and adviser self-dealing. The complexity of family office financial structures also creates specific legal challenges: multiple accounts across multiple custodians, layered entity structures, significant private securities holdings, and concentrated positions that require specialized expertise to properly evaluate in the context of a dispute.

Bakhtiari & Harrison has represented family offices and their principals in securities disputes for decades. The firm’s Los Angeles headquarters puts it at the center of one of the highest concentrations of family office wealth in the United States — in communities including Beverly Hills, Bel Air, Brentwood, Pacific Palisades, and Malibu. All family office matters are handled with complete discretion, and the firm is experienced in accommodating the privacy requirements of prominent families.

Common investment fraud claims involving family offices

• Private placement fraud: family offices are frequent targets for private placement investments — Regulation D offerings, real estate funds, hedge fund interests, and venture capital deals — with inadequately disclosed risks, embedded conflicts, and excessive fees. Bakhtiari & Harrison has handled significant private placement fraud claims on behalf of family office clients.
• Overconcentration and portfolio mismanagement: advisers managing family office assets have in some cases overconcentrated portfolios in a single security, sector, or product — often the adviser’s own firm’s products. Overconcentration claims are among the most significant in the family office context given the scale of assets involved.
• Hedge fund fraud and misrepresentation: family offices are significant purchasers of hedge fund interests, which carry specific disclosure risks — undisclosed fees, strategy misrepresentation, liquidity misstatements, and performance calculation errors.
• Adviser self-dealing and breach of fiduciary duty: advisers managing family office assets owe a fiduciary duty and are prohibited from self-dealing. Undisclosed conflicts of interest — recommending products in which the adviser has a personal financial stake — are common in the family office context.
• Complex structured product failures: structured notes, principal-protected products, and complex alternative investments have been aggressively marketed to family offices as exclusive solutions carrying inadequately disclosed risks.

FINRA arbitration for family office claims

When a family office’s assets are managed by a FINRA-registered broker or brokerage firm, disputes are resolved through FINRA arbitration — regardless of the sophistication of the investor. FINRA arbitration is private and not public record, which is an important consideration for family offices for whom confidentiality is a priority. There is no cap on damages in FINRA arbitration — the firm’s $54.1 million Citigroup award demonstrates that FINRA panels will award substantial damages, including punitive damages, when the facts warrant it.

When claims are against parties who are not FINRA members — including unregistered investment advisers, private fund managers, and hedge fund operators — court litigation may be the appropriate path. Bakhtiari & Harrison evaluates the optimal forum for family office claims at the initial consultation.

Discretion and confidentiality

All family office matters at Bakhtiari & Harrison are handled with complete discretion. The firm does not disclose client identities, case details, or outcomes without explicit consent. FINRA arbitration hearings are private and not open to the public. Securities litigation can be structured to minimize public exposure where possible. The firm regularly accommodates the specific confidentiality requirements of prominent families and family offices.

Frequently asked questions — family office representation

Can a family office file a FINRA arbitration claim?

Yes. Family offices and their principals — regardless of their sophistication or accredited investor status — have the right to pursue FINRA arbitration claims against FINRA-registered broker-dealers and registered representatives for unsuitable recommendations, misrepresentation, unauthorized trading, and other misconduct. Sophistication does not waive the right to suitable recommendations and honest disclosure. Bakhtiari & Harrison evaluates all family office claims at no charge.

How does Bakhtiari & Harrison handle the complexity of family office financial structures?

Family office claims frequently involve multiple accounts across multiple custodians, complex entity structures, and significant private securities holdings. Bakhtiari & Harrison works with financial experts and forensic accountants to fully map the financial landscape of a family office claim, identify all sources of loss and all potentially liable parties, and build the strongest possible case for recovery. The firm’s experience with high-complexity, high-value claims — including the $54.1 million Citigroup award — gives it the infrastructure to handle family office cases at scale.

Is FINRA arbitration truly confidential for family office matters?

Yes. FINRA arbitration is a private proceeding — not a court proceeding and not public record. The claim, evidence, hearing, and award are all confidential. Bakhtiari & Harrison also maintains strict internal confidentiality protocols for all family office matters. The combination of FINRA’s procedural confidentiality and the firm’s internal practices makes FINRA arbitration the most confidential available path for family office investment disputes.

Does the firm represent multi-family offices and institutional family office structures?

Yes. Bakhtiari & Harrison represents single-family offices, multi-family offices, family trusts, foundations, and other institutional family wealth structures. Claims on behalf of entity clients have the same legal basis as individual investor claims and are handled with the same resources and expertise.

Contact a family office attorney — free consultation

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys review every potential matter at no charge.

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

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