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

Rhode Island 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 Rhode Island 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 Rhode Island Investment Fraud Attorney Can Help You

If you are located in Rhode Island, have experienced financial loss, and are searching for an investment fraud lawyer, Bakhtiari & Harrison may be able to assist you. We represent Rhode Island 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 Rhode Island Law

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

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. 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.

Common Rhode Island Code Violations in Trading Securities

Several other common violations under relevant Rhode Island statutes include:

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

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

Rhode Island 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 Rhode Island, including Providence, Warwick, Cranston, Pawtucket, East Providence and other areas. We will work tirelessly in pursuit of financial compensation for your investment losses.