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Nevada Investment Fraud Lawyer, Securities Attorney, SEC & FINRA Securities Law Firm, and Breach of Fiduciary Duty Attorney

Nevada Financial Dispute Clients can Rely on Bakhtiari & Harrison to Handle All Types of Litigation and Arbitration Regarding Stock Brokers, Financial Investment Firms, and the Securities Industry.

Bakhtiari & Harrison is a law firm, focused on the representation of Nevada 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.

We represent individuals and institutions in securities arbitration and litigation claims before FINRA (Financial Industry Regulatory Authority, AAA (American Arbitration Association) and other arbitration providers.

How a Nevada Investment Fraud Attorney Can Help You

If you are located in Nevada, have experienced financial loss, and are searching for an investment fraud lawyer, Bakhtiari & Harrison may be able to assist you. We represent Nevada based investors and clients with these and other types of investment fraud and financial advisor misconduct cases.

Understanding Nevada Securities Code Violations in Trading Securities

In the complex world of securities trading, adherence to legal and ethical standards is paramount. Nevada has established a robust legal framework to ensure the integrity of its financial markets and protect investors from malpractices. This blog post will delve into some common violations under the Nevada Securities Code, including suitability, unauthorized trading, misrepresentations, failure to disclose, and unfair business advantage.

Offer, Sale and Purchase of Securities in Nevada

NRS 90.570 governs the ethical and legal conduct associated with the offer, sale, and purchase of securities in Nevada. This statute explicitly prohibits individuals from engaging in fraudulent activities. Firstly, it forbids employing any device, scheme, or artifice to defraud. Secondly, it prohibits making untrue statements of material facts or omitting necessary material facts that would render other statements misleading under the given circumstances. Lastly, it disallows engaging in any act, practice, or course of business that operates, or would operate, as a fraud or deceit upon any person. These provisions are designed to maintain the integrity of securities transactions and protect investors from deceptive practices.

Duties and Fidudiciary Duties of Broker-Dealears and Sales Representatives in Nevada

NRS 90.575 outlines the fiduciary duties of broker-dealers, sales representatives, investment advisers, and their representatives in Nevada. It mandates that these financial professionals must not violate their fiduciary duty towards clients as imposed by NRS 628A.020. The Administrator has the authority to define or exclude specific acts, practices, or courses of business as violations of this fiduciary duty through regulation. Additionally, the Administrator can prescribe methods designed to prevent these financial professionals from engaging in conduct that violates their fiduciary obligations. This statute ensures that fiduciary duties are upheld, safeguarding clients’ interests in financial transactions.

Market Manipulation under Nevada Securities Law

NRS 90.580 addresses the prohibition of market manipulation in Nevada. This statute, reinforcing the general principles of NRS 90.570, prohibits several specific deceptive practices. It forbids quoting fictitious prices for securities and executing transactions that do not alter the beneficial ownership of a security to create a false impression of market activity. Additionally, it prohibits placing orders to buy or sell securities with the knowledge that matching orders will be made to fabricate the appearance of active trading. It also bans the use of any deceptive or fraudulent schemes to manipulate the market and the dissemination of false or misleading information about publicly traded securities. However, transactions and conduct that comply with the Securities Exchange Act of 1934 and the regulations of the Securities and Exchange Commission are exempt from these prohibitions. This statute aims to ensure the integrity and transparency of the securities market, protecting investors from fraudulent activities.

Prohibited Securities and Fraudulent Activity under Nevada Securities Laws

NRS 90.590 explicitly prohibits certain fraudulent activities by investment advisers and their representatives in Nevada. It is unlawful for these individuals, whether acting directly or indirectly, to employ any device, scheme, or artifice to defraud a client. Additionally, they must not engage in any act, practice, or course of business that operates, or would operate, as a fraud or deceit upon a client. This statute ensures that investment advisers adhere to high ethical standards, protecting clients from deceptive and fraudulent practices in their financial dealings.

Common Code Violations in Trading Securities

Several other common violations under relate to trading securities, including:

  1. Churning: Excessive trading in a client’s account primarily to generate commissions for the broker, violating fiduciary duties which can violate Nevada securities laws.
  2. Front-Running: Brokers executing orders on a security for their own account while taking advantage of advance knowledge of pending orders from their customers, which can violate Nevada Securities laws.
  3. Ponzi Schemes: Investment frauds that pay returns to earlier investors from the new capital contributed by newer investors, rather than from profit earned, falling under fraudulent schemes addressed by Nevada securities laws.
  4. Insider Trading: Trading a public company’s stock or other securities based on material, non-public information about the company, violating fair market practices under Nevada securities laws.
  5. Failure to Supervise: Supervisors failing to adequately oversee the actions of brokers, leading to various forms of misconduct, which can violate Nevada securities laws.

Nevada Based Clients Should Contact Our Experienced Securities Fraud Lawyers Now

If you’ve been the victim of investment fraud, contact the securities fraud attorneys of Bakhtiari & Harrison for a free initial consultation. We represent victims of financial and investment disputes throughout Nevada, including Las Vegas and Reno. We will work tirelessly in pursuit of financial compensation for your investment losses.