Unregistered Securities
Most stocks, bonds and notes cannot be offered for sale to the public, unless they are first registered with the Securities and Exchange Commission and/or a state regulator. Any security that does not have an effective registration statement on file with the Securities and Exchange Commission is considered “unregistered.” To sell (or attempt to sell) a non-exempt security before it is registered may even be considered a felony.
Exemptions to registration requirements exist under certain circ*mstances. Whether an exemption exists is generally a complex issue of fact and law – one that should be discussed with an attorney knowledgeable in this field.
In recent years, a type of unregistered security that has been foisted upon unsuspecting investors is the “promissory note.” Typically, the Stockbroker or Financial Advisor will present an investment as a private opportunity, only available to a select few. Often, the “promissory note” will represent an investment in a business about which the advisor’s employer (the brokerage firm) is unaware. This is called “selling away” – the sale of an unapproved product.
Investors need to be very careful about whom they choose to do business with, and the investments they agree to purchase. Our office can help you determine whether you have a valid claim related to the purchase of an unregistered security. Please call us at (800) 718-1422.
Typical Securities Claims
Breach of Fiduciary Duty
Fiduciary Duty is a legal obligation of one party to act in the best financial interest of another – to place another’s interests first – to make the client’s interests paramount. Read More
Unsuitability
FINRA's suitability rule states that firms and their associated persons “must have a reasonable basis to believe” that a transaction or investment strategy involving a recommended security is suitable for the customer. This reasonable belief must be based on Read More
Failure to Diversify
Failure to diversify means that a Stockbroker or Financial Advisor fails to recommend an appropriate allocation of one’s assets into different investment asset classes. Read More
Churning
Churning, in its most basic form, occurs when a stockbroker/financial advisor buys and sells securities for and account, without regard for the customer’s investment interests, for the purpose of generating commissions. Read More
Unregistered Stockbrokers and Unregistered Sales Assistants
By law, stockbrokers and certain sales assistants must be registered with FINRA and with state regulators.If they fail to meet this requirement, an investor may have the right to cancel a purchase or sale. Read More
Unregistered Securities
Before securities, such as stocks, bonds and notes can be offered for sale to the public, they first must be registered with the Securities and Exchange Commission and/or a state regulator. Read More
Concentrated Positions
If you have a large percentage of your assets invested in a single stock or bond, a small number of stocks or bonds, or even a single sector of stocks or bonds , then you have a concentrated position. Concentrated positions expose the investor to significantly greater risk Read More
Negligence
Negligence occurs when a financial advisor or stockbroker breaches a general duty of care resulting in damages.Just like the victim of an auto accident may be entitled to sue the driver who was at fault, the victim of a stockbroker’s negligence may also be entitled to seek relief. Read More
Unauthorized Trading
Unauthorized trading is the purchase or sale of securities that a Financial Advisor or Stockbroker makes for a customer without the customer’s permission. The Financial Industry Regulatory Authority (FINRA) has a specific rule that prohibits any Financial Advisor or Stockbroker from making unauthorized securities trades Read More
Breach of Contract
When an investor has an oral or written contract with a financial advisor or stockbroker, and that person breaches their contractual obligations, they may be financially responsible for the breach. Read More
Breach of Third Party Contract
In certain situations, you may be a third-party beneficiary of a brokerage firm’s contract with a regulator, such as FINRA. Read More
Failure to Follow Instructions
As a fundamental element of their relationship with the customer, Stockbrokers/Financial Advisors, as well as registered sales assistants, are required to follow the customer’s instructions. They may be liable if they fail to do so. Read More
ALL SECURITIES CLAIMS