Texas Investment Fraud Lawyers & FINRA Attorneys

Investment fraud lawyers serving investors throughout Texas

Texas is the second most populous state in the country and one of the largest investment markets in the United States. The state’s economy spans energy, technology, financial services, healthcare, real estate, and manufacturing — creating a large and diverse investor community that includes energy industry executives, technology professionals, real estate investors, retirees, and high-net-worth entrepreneurs. Texas investors face the full spectrum of broker misconduct that generates FINRA arbitration claims nationally, with specific patterns tied to the state’s dominant industries.

Bakhtiari & Harrison represents Texas investors throughout the state. Ryan Bakhtiari is admitted in Texas — giving Texas investors direct access to Texas-admitted counsel, not just an out-of-state firm with no Texas bar connection. FINRA arbitration hearings for Texas investors are held at the Dallas FINRA hearing location at 12801 N Central Expressway and the Houston FINRA hearing location at 1980 Post Oak Blvd.

Investment fraud and misconduct claims we handle

• Unsuitable investment recommendations: brokers who recommend investments inconsistent with an investor’s risk tolerance, financial situation, or investment objectives violate FINRA Rule 2111 and Regulation Best Interest.
• Broker fraud and misrepresentation: material misstatements and omissions in connection with an investment recommendation 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 actionable as a suitability violation and a breach of the duty of care.
• Overconcentration: failing to maintain adequate diversification in a single security, sector, or product is a suitability violation.
• Product failure: unsuitable recommendations of complex or illiquid products including non-traded REITs, structured notes, variable annuities, leveraged ETFs, and private placements.
• Elder financial fraud: financial professionals who exploit elderly or vulnerable investors face enhanced liability under federal and state elder financial abuse statutes.
• Failure to supervise: brokerage firms bear independent liability under FINRA Rule 3110 for failing to adequately supervise their registered representatives.

Texas cities — investment fraud lawyers near you

Texas investment fraud lawyers at Bakhtiari & Harrison represent investors throughout the state of Texas. For city-specific information visit the pages for Houston, Dallas, Fort Worth, San Antonio and Austin. The firm also represents investors throughout El Paso, Lubbock, Amarillo, and all other Texas communities.

Suitability in Texas Securities Law

One of the fundamental principles under the Texas Securities Act is the requirement for investment advisers and brokers to ensure that their investment recommendations are suitable for their clients. According to Texas Administrative Code, Title 7, Part 7, Chapter 139, Rule §139.16, advisers must consider the client’s financial situation, investment objectives, and risk tolerance when making recommendations. This “suitability” standard mandates a thorough understanding of the client’s needs and the characteristics of the investments being recommended.

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 Texas suitability requirement is integral to protecting investors from inappropriate and potentially harmful investment strategies.

Unauthorized Trading in Texas

Unauthorized trading is explicitly prohibited under the Texas Administrative Code, Title 7, Part 7, Chapter 139, Rule §139.15. This section mandates that brokers obtain explicit consent from clients before executing trades on their behalf. Unauthorized trading involves executing transactions without the client’s knowledge or approval, breaching the fiduciary duty that brokers owe to their clients.

This violation can result in severe financial consequences for the client and disciplinary action against the broker, including fines, suspension, or revocation of their license. Ensuring that clients are fully aware of and approve all transactions is critical to maintaining trust and compliance with Texas securities regulations.

Misrepresentations Under Texas Securities Law

Texas Securities Act, Section 4007.101 addresses misrepresentations and omissions of material facts in the sale of securities. Brokers and advisers are prohibited from making false statements or omitting crucial information that could affect an investor’s decision-making process. Texas investment fraud lawyers Bakhtiari & Harrison are experienced with misreprsentations claims. Misrepresentations can include false claims about the financial health of a company, the risks associated with an investment, or the expected returns.

Investors rely on accurate and complete information to make informed decisions. Any deviation from this standard undermines market integrity and can lead to significant investor harm. Violations of Texas § 4007.101 can result in civil liabilities, including rescission of transactions and monetary damages.

Failure to Disclose Material Information

Failure to disclose material information is closely related to misrepresentations and is governed by the same section, Texas Securities Act, Section 4007.101. This provision requires full and fair disclosure of all relevant information that an investor would need to make an informed decision. Failure to disclose such information is considered fraudulent and deceptive.

Material information can include details about the financial performance of an investment, potential conflicts of interest, or any other fact that could influence an investor’s decision. Transparency is essential in the securities industry, and failure to uphold this standard can lead to legal action and penalties.

Unfair Business Advantage in Texas

Unfair business practices in the securities industry are addressed under the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA), Business and Commerce Code, Chapter 17. Texas investment fraud lawyers Bakhtiari & Harrison will work tirelessly in pursuit of your claim. This broad provision prohibits any unlawful, unfair, or fraudulent business acts or practices, including those in the securities sector.

Unfair business advantage can manifest in various forms, such as insider trading, market manipulation, or exploiting non-public information for personal gain. These practices undermine market fairness and investor confidence. Violations of Texas § 17 can result in injunctions, restitution, and civil penalties, providing robust protection for investors and maintaining market integrity.

Common Code Violations in Trading Securities

Several other common violations under the Texas Securities Act relate to trading securities, including:

• Churning: Excessive trading in a client’s account primarily to generate commissions for the broker, violating fiduciary duties as outlined in Texas Administrative Code, Title 7, Part 7, Chapter 115, Rule §115.15.
• 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 Texas Administrative Code, Title 7, Part 7, Chapter 115, Rule §115.16.
• 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 Texas Securities Act, Section 4007.102. Texas investment fraud lawyers Bakhtiari & Harrison will work tirelessly in pursuit of your claim.
• Insider Trading: Trading a public company’s stock or other securities based on material, non-public information about the company, violating fair market practices as described in Texas Securities Act, Section 4008.101.
• Failure to Supervise: Supervisors failing to adequately oversee the actions of brokers, leading to various forms of misconduct, which is addressed under Texas Administrative Code, Title 7, Part 7, Chapter 139, Rule §139.15.

Energy sector investment fraud in Texas

Texas’s energy industry creates specific investment fraud vulnerabilities that are well-documented in FINRA arbitration. Common energy-sector fraud patterns include: oil and gas program fraud — unregistered private placements marketed to Texas accredited investors with false projections and undisclosed conflicts; master limited partnership misrepresentation — unsuitable MLP recommendations based on false “toll road” income stability claims that collapsed when energy prices declined; and energy sector overconcentration — portfolios heavily weighted toward Texas energy companies that produced catastrophic losses in the 2014-2016 and 2020 energy market downturns. Texas investment fraud lawyers at Bakhtiari & Harrison have specific experience with energy sector investment fraud claims and evaluates all such claims at no charge.

Why choose Bakhtiari & Harrison as your Texas 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 — the body that writes the rules governing every FINRA arbitration proceeding.
• Former Morgan Stanley in-house counsel. David Harrison spent years as in-house counsel at Morgan Stanley Dean Witter and began his career as a Series 7-licensed registered representative at Shearson Lehman Brothers.
• State bar admission. Ryan Bakhtiari is admitted in Texas, New York, and the District of Columbia in addition to California — giving investors in these states direct access to admitted counsel.
• FINRA hearings near you. FINRA arbitration hearings are held at the regional location nearest the claimant — investors do not need to travel to California.
• Contingency fee representation. No recovery, no fee. Initial consultations are free.

Frequently asked questions — Texas investment fraud lawyers

Does Bakhtiari & Harrison have Texas bar admission?

Yes. Ryan Bakhtiari is admitted to practice in Texas and in the Southern and Northern Districts of Texas federal courts. This gives Texas investors direct access to Texas-admitted counsel for both FINRA arbitration and federal court securities litigation — not just a California firm appearing pro hac vice.

What is the deadline to file a FINRA arbitration claim in Texas?

Under FINRA Rule 12206, claims must be filed within six years of the events giving rise to the dispute. Texas investors may also have state law claims under the Texas Securities Act with their own limitations periods. Contact Bakhtiari & Harrison promptly — deadlines are strictly enforced.

Where are FINRA arbitration hearings held for Texas investors?

FINRA arbitration hearings for Texas investors are held at the Dallas FINRA hearing location (12801 N Central Expressway, Dallas) or the Houston FINRA hearing location (1980 Post Oak Blvd, Houston), depending on the claimant’s residence. Bakhtiari & Harrison appears at all Texas FINRA hearing locations.

Does Bakhtiari & Harrison represent investors throughout Texas — not just in major cities?

Yes. Bakhtiari & Harrison represents investors throughout Texas — in Houston, Dallas, Fort Worth, Austin, San Antonio, and every other Texas community. FINRA arbitration hearings are held near the claimant’s residence, so distance from the major cities is never a barrier to representation.

Contact our Texas investment fraud lawyers — free consultation

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys evaluate every potential investor claim at no charge. Investor cases are handled on a contingency fee basis — no recovery, no fee.

Investor cases are handled on a contingency fee basis — no recovery, no fee.

Call: (800) 382-7969 | Contact Us