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

North Carolina 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 North Carolina 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 North Carolina Investment Fraud Attorney Can Help You

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

Understanding Securities Code Violations in Trading Securities under North Carolina Law

In the complex world of securities trading, adherence to legal and ethical standards is paramount. North Carolina 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 North Carolina statutes, including suitability, unauthorized trading, misrepresentations, failure to disclose, and unfair business advantage.

Suitability under North Carolina 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 North Carolina suitability requirement is integral to protecting investors from inappropriate and potentially harmful investment strategies.

North Carolina requires investment advisers to act in the best interests of their clients. Under the North Carolina Securities Act, 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 North Carolina Securities Law

The North Carolina Securities Act 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 North Carolina Securities Law

Similarly, under the North Carolina Securities 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 North Carolina Law

North Carolina’s Securities 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 North Carolina Securities Laws

In North Carolina, similar protections are provided under the North Carolina Unfair and Deceptive Trade Practices Act, 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 North Carolina Code Violations in Trading Securities

Several other common violations under relevant North Carolina statutes include:

Churning: Excessive trading in a client’s account primarily to generate commissions for the broker. This violates fiduciary duties under North Carolina’s Securities Law.
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 North Carolina 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 North Carolina’s Securities 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 North Carolina’s Securities Law.
Failure to Supervise: Supervisors failing to adequately oversee the actions of brokers, leading to various forms of misconduct. This is addressed under North Carolina’s financial regulations.

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

North Carolina 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 North Carolina, including Charlotte, Raleigh, Greensboro, Durham, and Winston-Salem, as well as clients in neighboring states. We will work tirelessly in pursuit of financial compensation for your investment losses.