Rhode Island Investment Fraud Lawyers & FINRA Attorneys

Rhode Island investment fraud lawyers at Bakhtiari & Harrison represent investors in Providence, Newport, Warwick, Cranston, and throughout Rhode Island in FINRA arbitration and securities litigation. Rhode Island’s compact economy — anchored by healthcare and education in Providence, defense and maritime industries along Narragansett Bay, a significant financial services sector, and one of the most concentrated university communities in New England — creates an investor market whose retirement savings and professional investment accounts are managed through national and regional broker-dealer networks. David Harrison is a former Morgan Stanley Dean Witter in-house counsel and former New York City assistant district attorney.

Investment fraud lawyers serving Rhode Island investors

Rhode Island’s investor community reflects the state’s distinctive economic identity. Providence — the state capital and its largest city — is anchored by the Lifespan health system, Care New England, and a major academic medical complex including Brown University’s Warren Alpert Medical School, creating one of New England’s most concentrated healthcare professional investor communities. Hospital executives, physicians, researchers, and administrators whose significant retirement assets and deferred compensation arrangements are managed through national broker-dealer networks face specific unsuitable product recommendations and variable annuity abuse at retirement transition.

Brown University, the Rhode Island School of Design, Johnson & Wales, and a cluster of other major educational institutions create a significant academic investor community in Providence. University faculty with equity compensation from biotechnology and technology spinouts, endowment-adjacent investment relationships, and substantial retirement savings through TIAA and related academic pension systems face the same rollover mismanagement and unsuitable annuity recommendation patterns documented throughout New England’s university investor communities.

Newport’s distinctive economy — shaped by defense operations at Naval Station Newport, a significant wealth management and financial services community serving old New England families, and a prominent tourism and hospitality sector — creates a varied investor demographic. The Naval Undersea Warfare Center and the Naval War College add a significant military professional investor community with specific TSP and retirement savings exposure. Newport’s private wealth management community, serving multigenerational New England families, creates specific trust-based exploitation vulnerability through long-standing adviser relationships. Narragansett Bay’s maritime industry communities add a blue-collar investor demographic whose pension assets and retirement savings face broker misconduct at retirement.

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.
• Variable annuity and product fraud: unsuitable recommendations of variable annuities, non-traded REITs, structured notes, leveraged ETFs, and private placements.
• Elder financial fraud: exploitation of elderly investors subject to enhanced liability under state and federal statutes.
• Failure to supervise: brokerage firms bear independent liability under FINRA Rule 3110 when supervisory failures allow broker misconduct to cause investor harm.

Suitability under Rhode Island 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. Clients should contact our experienced Rhode Island investment fraud lawyers now. The Rhode Island suitability requirement is integral to protecting investors from inappropriate and potentially harmful investment strategies.

Rhode Island requires investment advisers to act in the best interests of their clients. Under Rhode Island Uniform Securities Act (R.I. Gen. Laws § 7-11-501), 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 Rhode Island Securities Law

Rhode Island Uniform Securities Act (R.I. Gen. Laws § 7-11-501) 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 Rhode Island Securities Law

Similarly, under the Rhode Island Uniform Securities Act (R.I. Gen. Laws § 7-11-501), 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 Rhode Island Law

Rhode Island’s Rhode Island Uniform Securities Act (R.I. Gen. Laws § 7-11-501) 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 Rhode Island Securities Laws

In Rhode Island, similar protections are provided under the Rhode Island Deceptive Trade Practices Act (R.I. Gen. Laws § 6-13.1-1), which prohibits deceptive acts and practices in the conduct of business, including securities trading. This includes insider trading, market manipulation, and other unfair practices.

Why choose Bakhtiari & Harrison as your Rhode Island investment fraud lawyers

• $250 million+ recovered. Four decades of results for investors in FINRA arbitration and securities litigation nationwide.
• 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.
• Dedicated experience in FINRA arbitration. Selecting counsel with specific FINRA arbitration expertise is the single most important decision an investor claimant makes. Bakhtiari & Harrison’s practice is dedicated to investor-side FINRA arbitration and securities litigation.
• 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.

Frequently asked questions — Rhode Island investment fraud lawyers