Securities Violations Litigation Overview
The Securities and Exchange Commission (SEC) has been empowered by Congress to investigate alleged violations of federal securities laws, subpoena witnesses and compel the production of documents. The SEC can initiate a hearing against an Investment firm or other entity registered with the SEC to determine liability and can exact sanctions, including censure, limiting the registrant's activities or revoking registration. The hearing is presided over by an administrative law judge who then issues an initial decision, which can be reviewed by the SEC. The SEC has the power to seek injunctive relief for violations of the securities laws in federal court.
In addition to SEC enforcement actions and criminal prosecution by the Department of Justice (for federal securities violations), individuals can initiate private, civil suits against companies or investment professionals alleging violations of the securities laws.
Securities litigation is usually based on key areas of investment violations such as churning, unsuitable investments, unauthorized trading, market manipulation insider trading and fraud misrepresentation and omissions, misappropriations, and investment scams are the most common infractions. When an investor feels that they have been defrauded, securities and investment lawyers can determine whether an investor can recover money and what is the best way to proceed. There are a variety of options but also a number of countervailing measures to prevent frivolous lawsuits therefore investment attorneys should be consulted.
Our law firm will take steps to prevent any future losses. In addition, our investments lawyers will try to persuade the financial services firm that you were damaged and to quantify and substantiate your losses. Depending on the Investment firm, attorney and case, a customer could be made whole at this point. If the firm does not to make an acceptable offer the matter can proceed to either the courts or arbitration.
Many customers sign an arbitration agreement when they open an account. If they signed an arbitration agreement the venue to litigate the matter will be through some arbitration forum. The two most popular are the NYSE and NASD. If an arbitration agreement was not signed, the customer might have the option to litigate in the courts. The majority of cases are heard by an arbitration panel. Arbitration is a faster and cheaper method to litigate. In an arbitration proceeding there are no juries and the rules of evidence do not apply. In addition to the federal securities laws, most states have their own laws addressing some aspect of securities regulation and sales that allow the state's securities commissions to conduct investigations and bring enforcement actions.
The SEC is the primary enforcer of US securities laws. Everystate, however, has its own securities laws and rules, which are called Blue Sky Laws. The Arkansas Securities Department enforces Arkansas securities laws. These laws allow the states to take action against securities violators using state law. It is important that each state's statutes and regulations be reviewed before commencing violation proceedings for what is allowed or not allowed in a state. The language regarding regulations and statutory language may among states may be the same but their interpretation very different.
For these cases it is best to use an investment lawyer with experience in this area.
When your legal matter is one of securities or investment law, we suggest you to contact us at The Hershewe Law Firm to discuss your claim toll-free at 1-877-382-9734. Feel free to also email us your questions about litigation options.
