Malibu Investment Fraud Attorneys & FINRA Lawyers

Investment fraud lawyers serving Malibu

Malibu’s investor community reflects the community’s unique economic profile. The city’s 21-mile coastline is home to a concentration of entertainment industry executives, successful entrepreneurs, real estate professionals, and high-net-worth retirees whose accumulated wealth creates specific investment fraud exposure. The entertainment industry’s social networks and deal-making culture create vulnerability to private placement fraud — investment schemes that leverage celebrity and entertainment industry credibility to promote unsuitable or fraudulent investments through trusted professional networks.

Malibu’s accredited investor community is also a consistent target for complex structured product misrepresentation. Brokers who market structured notes, auto-callable products, and complex alternative investment strategies to Malibu investors frequently rely on the community’s general financial sophistication as a defense — arguing that investors understood what they were buying. Bakhtiari & Harrison’s FINRA arbitration experience with sophisticated investor claims specifically counters this defense by focusing on the actual disclosures made and the suitability of the recommendation in the context of the investor’s specific financial profile.

The broader Pacific Palisades, Topanga, and Malibu Canyon communities share similar investor demographics — a concentration of creative industry professionals, technology entrepreneurs, and real estate investors whose private investment activity creates specific private placement fraud exposure. Real estate investment fund misrepresentation targeting Malibu-area investors has generated FINRA arbitration claims throughout the Los Angeles market.

Investment fraud and misconduct claims we handle

• Unsuitable investment recommendations: recommendations inconsistent with the investor’s risk tolerance, financial situation, or objectives violate FINRA Rule 2111 and Regulation Best Interest.
• Broker fraud and misrepresentation: material misstatements and omissions in connection with investment recommendations are actionable under federal securities law and FINRA rules.
• Unauthorized trading: executing transactions without prior client authorization violates the account agreement and FINRA rules.
• Churning and excessive trading: excessive trading to generate commissions at the investor’s expense is a suitability violation.
• Overconcentration: failing to maintain adequate diversification in a single security, sector, or product is a suitability violation.
• Product failure: unsuitable recommendations of non-traded REITs, structured notes, variable annuities, leveraged ETFs, and private placements.
• Elder financial fraud: financial professionals who exploit elderly investors face enhanced liability under California elder financial abuse statutes and federal law.
• Failure to supervise: brokerage firms bear independent liability under FINRA Rule 3110 when supervisory failures allow broker misconduct to cause investor harm.

Why choose Bakhtiari & Harrison as your Malibu investment fraud lawyers

• $250 million+ recovered. Four decades of results for investors in FINRA arbitration and securities litigation, including a $54.1 million award against Citigroup Global Markets.
• California-admitted attorneys. Ryan Bakhtiari and David Harrison are both admitted in California and have represented California investors for over four decades.
• Former FINRA NAMC Chairman. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee from 2013 to 2017.
• Former Morgan Stanley in-house counsel. David Harrison spent years as Morgan Stanley Dean Witter in-house counsel and began his career as a Series 7-licensed representative at Shearson Lehman Brothers.
• FINRA hearings near you. FINRA arbitration hearings are held at the venue nearest the claimant’s residence.
• Contingency fee representation. No recovery, no fee. Initial consultations are free.

For Los Angeles coverage visit the Los Angeles Investment Fraud Lawyers page. For statewide California coverage visit the California Investment Fraud Lawyers page.

Frequently asked questions — Malibu investment fraud lawyers

Can I represent myself in FINRA arbitration if I live in Malibu?

You are not required to have an attorney, but representing yourself against a brokerage firm’s dedicated FINRA defense counsel is a severe disadvantage — particularly for Malibu investors whose high-value claims attract the most experienced and well-resourced brokerage firm defense teams in Los Angeles. Bakhtiari & Harrison represents Malibu investor claimants on a contingency fee basis — no financial barrier to qualified representation exists.

What damages can I recover in a Malibu investment fraud claim?

Prevailing investors recover compensatory damages — the difference between what a suitable investment would have returned and what you actually received — plus consequential damages and prejudgment interest. In cases involving fraud or willful misconduct, FINRA panels can award punitive damages. California’s elder financial abuse statutes provide additional remedies for qualifying cases. Bakhtiari & Harrison evaluates the full range of recoverable damages in every initial case review.

What evidence do I need to bring a Malibu investment fraud claim?

Your account records are the most important starting point — monthly statements, trade confirmations, account opening documents, and correspondence with your broker. For private placement claims, offering memoranda, subscription agreements, and any written projections are critical. You do not need a complete record to begin. Bakhtiari & Harrison pursues additional records through FINRA’s discovery process, including internal supervision records not publicly available.

What is Regulation Best Interest and how does it apply to Malibu investors?

Regulation Best Interest (Reg BI), effective June 30, 2020, requires broker-dealers to act in the best interest of retail customers — considering cost, risk, and reasonably available alternatives. For Malibu investors, Reg BI is particularly relevant where brokers recommended high-commission complex products or alternative investments when lower-cost alternatives existed. The fact that an investor is sophisticated or accredited does not eliminate the broker’s obligation to act in the investor’s best interest under Reg BI.

Contact our California investment fraud lawyers — free consultation

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys evaluate every potential investor claim at no charge. Investor cases are handled on a contingency fee basis — no recovery, no fee.

Call: (800) 382-7969 | Contact Us