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FINRA Enforcement Action? Hire a Skilled Defense Lawyer in Chicago
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You’re in Hot Water with FINRA – Now What?
There’s one reason you’re on this website: you’re looking for an elite criminal defense law firm. We‘re focused on providing the highest level of customer service, and case results for our clients. Our New York criminal defense lawyers are focused on servicing a very curated clientele, that expects high class service and exceptional understanding of the law.We have experience handling the toughest legal situations – that require experience, and excellence, in order to get the best possible legal outcomes for our clients. We have over 50 years of combined experience handing legal situations – nationwide, and even internationally. When you’re looking for a criminal defense lawyer, Spodek Law Group is a firm that will be on your radar. Our reputation is well received by other attorneys and members of the media alike.So, what do you do, if you get hit with one of these things?
The Enforcement Process Explained
Wait, what did you say? Sorry, if that didn‘t make sense. Let’s back up.FINRA is the largest self-regulatory organization overseeing broker-dealers and their registered representatives. In fulfilling this role, FINRA investigates potential violations of securities laws and its own rules. If violations are found, FINRA can bring formal disciplinary actions.These actions typically result in sanctions like fines, suspensions, or even permanent bars from the industry. Disciplinary actions are no joke – they can have devastating impacts on your career and livelihood.So how does this whole process work? It’s simple. FINRA’s investigations originate from various sources:
- Routine exams and audits of member firms
- Automated trading surveillance reports
- Tips from investors or whistleblowers
- Referrals from other regulators like the SEC
If red flags are raised, FINRA enforcement attorneys dig deeper. They gather evidence, interview witnesses, and review documents and data. Once the facts are compiled, they decide whether formal charges are warranted.Most cases settle through a negotiated “acceptance, waiver and consent” (AWC) where you admit to violations and agree to sanctions. But, if you contest the allegations, FINRA files a formal complaint kicking off litigation.The case is then heard by an independent hearing panel comprised of a FINRA hearing officer and two industry representatives. Both sides present evidence and legal arguments. If violations are proven, the panel levies sanctions which can be appealed to FINRA’s National Adjudicatory Council and ultimately the SEC and federal courts.It’s a high-stakes process with your entire career on the line. Having the right legal representation is crucial from the very start.
Don’t Try to Tough It Out Alone
Most law firms implement a cookie cutter strategy in order to fight your case, and save their own time. They don‘t look carefully at your situation – they simply want to move on to the next case. At Spodek Law Group, we leave no stone unturned. We do everything possible to win. Everything we do is focused on getting you results. We understand the difficult and challenges of going through a case. If you‘re accused of a crime, schedule a consultation with our criminal attorneys today.Sometimes prosecutors will only be fair if you respond with force to them. Without an attorney advising you, you might accidentally plead guilty when you could’ve won the case. The only way to truly know is to hire a private criminal defense attorney. At Spodek Law Group – we pride ourselves on taking a hands-on approach. It means researching the exact situation surrounding your case, and putting in the leg work to be familiar with every single intimate detail. Our firm has excellent work ethics, and we constantly hold firm meetings in order to discuss and address all of our cases. In the event of an emergency – we have a full team of lawyers available to help you.Regardless of how tough your situation is – we are here to help you. Our criminal defense lawyers work hard to have a solution for you, irrespective of the situation you find yourself in. Many clients are often embarrassed by their situation, and don’t speak openly about their alleged issue. We encourage open dialogue, and recommend full transparency – so we can give you the best possible legal advice.The Spodek Law Group handles cases nationwide. We have offices in NYC and Los Angeles.
Potential Violations FINRA Pursues
So what exactly does FINRA go after? Their disciplinary actions cover a wide range of potential violations by broker-dealers and their associated persons. Some of the most common include:
Suitability Violations
Brokers must have a reasonable basis to recommend investments based on the customer’s financial situation, risk tolerance, and investment objectives. Failure to perform this due diligence is a suitability violation.
Misrepresentation and Omissions
Lying to customers or omitting material facts about investments, risks, or conflicts of interest. This includes leaving out key details in marketing materials or oral communications.
Excessive Trading or Churning
Executing excessive buy and sell transactions in a customer‘s account just to generate commissions. This violates the duty to make recommendations in the customer‘s best interest.
Unauthorized Trading
Executing trades in a customer‘s account without their knowledge or approval. Even if well-intentioned, it‘s a big no-no.
Selling Away or Private Securities Transactions
Participating in undisclosed private securities deals or transactions outside the scope of your firm‘s supervision. Brokers must disclose all such activities.
Improper Use of Funds or Forgery
Misusing or misappropriating customer funds or forging their signatures on account documents or checks. A clear breach of ethics and the law.
Failure to Supervise
Firms must reasonably supervise their brokers’ activities. Lack of proper supervision, procedures, or follow-through can lead to charges against the firm.This is just a sample – FINRA rules cover many other potential violations related to research, trading, operations, anti-money laundering, and more. The bottom line is brokers and firms must deal fairly with customers and maintain high standards of commercial honor.