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Federal Securities Fraud Lawyer

March 21, 2024 Uncategorized

Facing securities fraud or negligence is emotionally and financially catastrophic. Whether you are a broker or investor, it is easy to find yourself in the middle of a federal securities fraud investigation. When this happens, you need to consult with an experienced federal securities fraud lawyer. They will guide you on the best course of action.

Federal Securities Fraud Charges 

Churning 

There are instances when a broker trades excessively to get commissions. Extensive trading is considered illegal when the broker does it outside the investment objectives, financial needs, and resources of the client. You can make a churning claim if you provide evidence that the trading made on your account was excessive and against your previously agreed investment objectives. This especially happens when the broker has control over your trading account. A churning claim is also valid if you can prove that the broker acted in reckless regard to your interests. If you are an investor and you notice many transactions that are counterproductive to your financial gain, you can talk to a fraud lawyer to ascertain if you have a valid claim.

Front running

Front running is also referred to as forward trading. This happens when a broker intentionally delays their client’s order for their financial gain. Securities trading requires one to act fast to profit. There are instances when you may ask your broker to buy a particular stock, mostly in large amounts. Forward trading happens when the broker tactfully delays in order to purchase personal shares. The broker aims to benefit when the stock prices go up. It is hard to prove front-running, especially if you do not have an experienced lawyer. If you have suspicions that your broker or their firm is front-running, a fraud lawyer can help bring this to light. Such a charge requires in-depth investigations. This is best left to fraud lawyers who possess the expertise and resources required to prove your claim and help you recover your money.

Unauthorized Trading

A broker is not authorized to execute a trade without the client’s approval. Brokers are liable for securities fraud if they trade securities without your approval. This is also sufficient ground for the client to sue. When an investor issues an approval, it is best if this is done in written form. This makes it easier to prove that they acted against your wish. It is important to note that there are exceptions to authorized trading. For instance, if the client has a margin account, then the broker can trade based on their discretion. If you find yourself accused of making an authorized trade, then you need to get representation. The same applies to a client.

Christine Twomey
Christine Twomey
2024-03-21
Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.
Brendan huisman
Brendan huisman
2024-03-18
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
Guerline Menard
2024-03-18
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
Keisha Parris
2024-03-15
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko Beauty
Taïko Beauty
2024-03-15
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!
Anthony Williams
Anthony Williams
2024-03-12
Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.
Loveth Okpedo
Loveth Okpedo
2024-03-12
Very professional, very transparent, over all a great experience
Bee L
Bee L
2024-02-28
Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.
divesh patel
divesh patel
2024-02-24
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Omissions and Misrepresentations 

It is unlawful for a broker or brokerage firm to omit or misrepresent facts or material information about stock or security. The information is deemed material if the disclosure would have had an impact on the decision made by the investor. Omissions and misrepresentations refer to inaccurate information or fraudulent research about the investment risks of a particular stock. If a client suffers a loss due to such omission or misrepresentation, then they have ground to file. A fraud lawyer can help you secure the monetary damage owed to you.

Securities Arbitration

In most cases, securities and stock disputes are handled out of court. These disputes are arbitrated. This is often a private session where all interested parties hold a meeting. The sessions can include a panel of experts who assess the claims made. The experts issue a binding decision once they have heard the merits and demerits of the charges. Having a lawyer present in the arbitration is important. The lawyer must be experienced in securities and especially the arbitration bit. In most states, these sessions are led by the Financial Industry Regulatory Authority (FINRA).

It is important to note that these cases are technical and complex. The panel must factually and legally analyze all facts presented. While you may have investment knowledge, this is not enough to present and win a case against a broker or brokerage firm. You stand a better chance if you let a professional lawyer handle the case. They will work to ensure that you recover all damages.

Why You Need a Federal Securities Fraud Lawyer

Facing securities fraud or negligence charges can be emotionally and financially devastating. Whether you are an investor or broker, it is easy to find yourself in the middle of a federal securities fraud investigation. When this happens, you need to consult with an experienced federal securities fraud lawyer who will guide you on the best course of action.

Federal Securities Fraud Charges Explained

There are different types of federal securities fraud charges that one may face. These include churning, front-running, unauthorized trading, omissions and misrepresentations.

Churning: This occurs when a broker trades excessively to get commissions outside the investment objectives agreed upon by the client. If you notice any transactions that do not align with your financial gain as an investor, talk to a fraud lawyer for guidance on whether you have a valid claim.

Front Running: This happens when brokers intentionally delay their clients’ orders for personal financial gain by tactfully delaying purchases until stock prices go up. Proving front running requires in-depth investigations, which require experienced lawyers who possess the expertise and resources required to prove your claim and help recover your money.

Unauthorized Trading: Brokers are liable for securities fraud if they trade without their client’s approval unless there is written consent from the client authorizing them to execute trades at their discretion.

Omissions and Misrepresentations: It is illegal for brokers or brokerage firms to omit or misrepresent facts about stocks or security information deemed material if disclosure would impact investors’ decisions negatively. A fraudulent research report about investment risks could lead investors to make wrong decisions resulting in losses; hence such cases warrant legal action against those responsible.

Securities Arbitration

Most disputes involving stocks and securities are arbitrated out of court through private sessions where all interested parties hold meetings before panels consisting of experts who assess claims made and then issue binding decisions after hearing merits/demerits presented during these proceedings led by the Financial Industry Regulatory Authority (FINRA). Having an experienced securities lawyer present during arbitration is crucial as these cases are technical and complex, requiring factual/legal analysis of all facts presented.

Why You Need a Federal Securities Fraud Lawyer

Federal securities fraud charges can be emotionally and financially devastating. It’s essential to have an experienced federal securities fraud lawyer who will guide you on the best course of action when facing such charges. They possess the expertise and resources required to prove your claim, help recover your money, or defend against false accusations.

Churning: Excessive trading by brokers outside agreed investment objectives could lead to churning claims if proven that they acted recklessly regarding clients’ interests. An investor with suspicions about counterproductive transactions should consult a fraud lawyer for guidance on whether they have valid claims.

Front Running: Brokers intentionally delaying client orders for personal financial gain through forward-trading requires in-depth investigations which require experienced lawyers possessing the expertise/resources necessary to prove claims made while helping recover lost funds.

Unauthorized Trading: Brokers executing trades without written consent from clients authorizing them to do so constitutes grounds for legal action against those responsible unless there are exceptions like margin accounts where discretion is allowed.

Omissions and Misrepresentations: Brokerage firms omitting/misrepresenting material information about stocks/securities deemed important enough disclosure would impact investors negatively and warrant legal action against those responsible since fraudulent research reports could mislead investors into making wrong decisions resulting in losses incurred; hence it’s crucial having an experienced securities lawyer present during arbitration proceedings led by FINRA experts assessing merits/demerits presented before issuing binding decisions after analyzing all facts presented factually/legally.

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Todd Spodek

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RALPH P. FRANCHO, JR

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JEREMY FEIGENBAUM

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ELIZABETH GARVEY

Associate

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CLAIRE BANKS

Associate

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RAJESH BARUA

Of-Counsel

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CHAD LEWIN

Of-Counsel

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