New York Investment Fraud Lawyer, Securities Attorney, SEC & FINRA Securities Law Firm

Bakhtiari & Harrison is a law firm, focused on the representation of New York based clients in FINRA and AAA arbitration, litigation, and related legal 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.

New York Clients Retain Us to Represent Their Interests in Financial Dipsutes Involving the Securities Industry

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 New York Investment Fraud Attorney Can Help You

If you are located in New York, have experienced financial loss, and are searching for an investment fraud lawyer, Bakhtiari & Harrison may be able to assist you. We represent New York based investors and clients with these and other types of investment fraud and financial advisor misconduct cases. Common investment advisor and brokerage firm claims frequently include:

• Asset Allocation
• Asset Theft
• Best Interest Standard – Reg BI
• Breach of Fiduciary
• Employee Stock Options
• Excessive Activity
• Margin Trading or Margin Calls
• Misrepresentations & Omissions of Material Fact
• Mutual Fund Fraud
• Over-Concentration
• Ponzi and Pyramid Schemes
• Private Placements
• Suitability
• Supervisiory Failures
• Unauthorized Trading

Understanding Violations under New York Law

In the complex world of securities trading, adherence to legal and ethical standards is paramount. New York has established robust legal frameworks to ensure the integrity of their financial markets and protect investors from malpractices. This blog post will delve into some common violations under relevant New York statutes, including suitability, unauthorized trading, misrepresentations, failure to disclose, and unfair business advantage.

Suitability under New York Securities Law

A violation occurs when a broker or adviser recommends unsuitable investments, failing to consider the client’s unique circumstances. Such actions can lead to significant financial losses for the client and potential legal liability for the adviser. The New York suitability requirement is integral to protecting investors from inappropriate and potentially harmful investment strategies.

New York requires investment advisers to act in the best interests of their clients. Under New York’s Martin Act (General Business Law Article 23-A, § 352), advisers must not mislead or deceive clients regarding investment suitability. Ensuring recommendations align with clients’ financial goals and risk tolerance is critical.

Unauthorized Trading under New York Securities Law

New York’s General Business Law § 352-c also prohibits unauthorized trading. Brokers must secure client consent before executing any trades. Violations can result in criminal penalties, fines, and the potential loss of licensure.

Misrepresentations Under New York’s Securities Law

Similarly, under the Martin Act, it is unlawful for any person to misrepresent or omit material facts in connection with the sale of securities. This includes false statements about the value or safety of an investment. Violations can lead to severe penalties, including fines and imprisonment.

Failure to Disclose Material Information under New York Law

New York’s Martin Act also mandates full disclosure of all material information to investors. Failure to disclose can result in criminal and civil penalties, aiming to protect investors from fraud and deception.

Unfair Business Advantage under New York Securities Laws

In New York, similar protections are provided under the General Business Law § 349, which prohibits deceptive acts and practices in the conduct of business, including securities trading. This includes insider trading, market manipulation, and other unfair practices.

Common New York Violations

Several other common violations under relevant New York statutes include:

• Churning: Excessive trading in a client’s account primarily to generate commissions for the broker. This violates fiduciary duties under New York’s Martin Act.
• Front-Running: Brokers executing orders on a security for their own account while taking advantage of advance knowledge of pending orders from their customers. This can violate New York statutes.
• Ponzi Schemes: Investment frauds that pay returns to earlier investors from new capital contributed by newer investors, rather than from profit earned. These schemes are addressed by New York’s General Business Law.
• Insider Trading: Trading a public company’s stock or other securities based on material, non-public information about the company. This violates fair market practices as described in New York’s Martin Act.
• Failure to Supervise: Supervisors failing to adequately oversee the actions of brokers, leading to various forms of misconduct. This is addressed under New York’s financial regulations.

Understanding and adhering to these laws and regulations in New York is crucial for maintaining market integrity and protecting investors from fraud and malpractice.

New York Based Clients Should Contact Our Experienced Securities Fraud Lawyers

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 New York, including New York City, Buffalo, Rochester, Yonkers, Syracuse and other areas. We will work tirelessly in pursuit of financial compensation for your investment losses.