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Protecting Your Broker-Dealer License with a FINRA Defense Lawyer in Boston

Facing FINRA Trouble? Protect Your Broker-Dealer License in Boston

You’ve, worked tirelessly to build your career in the financial services industry. But, now you’re facing allegations from FINRA that could jeopardize everything. It’s, a stressful situation, no doubt. However, take a deep breath. With, the right legal defense strategy, you can protect your broker-dealer license and reputation.At, Spodek Law Group, we understand what’s at stake. Our, Boston FINRA defense lawyers have over 25 years of experience defending brokers, investment advisers, and firms against regulatory actions. We’ll, fight aggressively to keep your license and career intact.

What is FINRA and Why Do I Need a Defense Lawyer?

FINRA, the Financial Industry Regulatory Authority, is a powerful self-regulatory organization. It, oversees virtually every broker-dealer firm doing business in the United States. FINRA’s, mission is to protect investors by enforcing securities laws and industry rules.If, FINRA suspects you violated its regulations, it can initiate an investigation. Potential, violations include:

  • Unsuitable investment recommendations
  • Excessive trading or churning
  • Misrepresentation or omission of facts
  • Unauthorized trading
  • Selling away or private securities transactions
  • Forgery or falsifying documents
  • Misappropriation of funds
  • Failure to supervise employees

Even, if the allegations seem minor, the consequences of a FINRA disciplinary action can be severe. Sanctions, may include:

  • Significant fines and monetary penalties
  • Suspension from working in the industry
  • Permanent bar from associating with FINRA members
  • Revocation of your broker-dealer license

A, FINRA bar or suspension can derail your career and cost you millions in future earnings. That’s, why you need an experienced securities defense attorney in your corner from the very start.

Our Battle-Tested FINRA Defense Strategies

At, Spodek Law Group, we’ve handled hundreds of FINRA cases over the past 25+ years. We, know the tactics regulators use and how to counter them effectively. Our, attorneys customize a strategic defense for each client’s unique situation.Some, of our proven FINRA defense approaches include:Challenging the Allegations EarlyWe, quickly analyze FINRA’s claims to identify any weaknesses or lack of evidence. If, appropriate, we’ll make a persuasive Wells Submission arguing why charges shouldn’t be brought.Negotiating Favorable SettlementsIn, some cases, the best outcome may be negotiating a settlement on favorable terms. Our, lawyers are skilled negotiators who have resolved many FINRA cases through settlements.Vigorous Defense at FINRA HearingsIf, the matter proceeds to a FINRA disciplinary hearing, we’ll mount an aggressive defense. We, cross-examine FINRA’s witnesses, present exculpatory evidence, and make compelling legal arguments.Appealing Adverse FINRA DecisionsEven, if FINRA rules against you, we can appeal the decision to the SEC and federal courts if necessary. Our, attorneys have extensive experience with the appeals process.No, matter which path your case takes, our focus is always protecting your livelihood. We, explore every possible avenue to mitigate potential sanctions and keep you in business.

Why Choose Spodek Law Group for Your FINRA Defense?

There, are many reasons why brokers and firms in Boston trust Spodek Law Group:Proven Track Record of SuccessOur, firm has achieved numerous favorable outcomes in FINRA cases over the past 25+ years. We’ve, negotiated settlements avoiding permanent bars, overturned disciplinary decisions on appeal, and more.Respected by RegulatorsFINRA, the SEC, and other regulators know our attorneys as skilled, ethical advocates. This, reputation works to our clients’ advantage during negotiations and hearings.Focused Securities Law PracticeSecurities regulation is our sole focus at Spodek Law Group. We’re, immersed in this complex area of law daily, giving us an edge over generalist firms.Nationwide RepresentationWhile, based in Boston, our FINRA defense lawyers represent clients nationwide. We’re, admitted to practice before FINRA, the SEC, and federal courts across the U.S.Attentive Client ServiceYou’ll, receive the personal attention of a senior attorney, not an associate or paralegal. We, keep you informed and address your questions promptly.When, your career and finances are on the line, you need the most experienced and capable legal counsel. At, Spodek Law Group, protecting brokers’ livelihoods is our passion and purpose.

Common FINRA Violations and Disciplinary Proceedings

To, better understand how we can defend your broker-dealer license, let’s look at some common FINRA rules violations:Suitability ViolationsFINRA’s, suitability rule requires that brokers have a “reasonable basis” to believe an investment is suitable for the customer. This, considers the client’s investment profile, including factors like:

Christine Twomey
Christine Twomey
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Brendan huisman
Brendan huisman
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
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
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
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
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
Very professional, very transparent, over all a great experience
Bee L
Bee L
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
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.
  • Age
  • Financial situation and needs
  • Tax status
  • Investment objectives
  • Risk tolerance
  • Investment experience and knowledge

Suitability, allegations often stem from selling complex or high-risk products to investors who may not fully understand them. Our, attorneys analyze the specific investments, client profiles, and disclosures made.We, may argue that the investments were suitable based on the information known at the time. Or, we may show that the client’s investment profile was inaccurate or misrepresented.Excessive Trading or ChurningChurning, refers to excessive buying and selling of securities in a client’s account. This, generates commissions for the broker while disregarding the client’s investment objectives.To, prove churning, FINRA must show the broker exercised control over the account and traded excessively. Our, defense may include:

  • Demonstrating the trading was appropriate for the client’s goals
  • Showing the client approved or directed the transactions
  • Arguing the broker lacked actual control over the account

Misrepresentation or Omission of FactsBrokers, must be fully truthful when making statements or providing information to clients. Misrepresenting or omitting key facts can lead to FINRA charges.We, scrutinize all communications and disclosures made to the client. Often, there are plausible explanations or the alleged omissions were immaterial.Unauthorized TradingExecuting, trades in a client’s account without their knowledge or approval is a serious violation. However, FINRA’s burden of proof is high here.Our, defenses may include showing the client previously granted discretionary authority. Or, we may have evidence the client knew about and approved the trades.Outside Business ActivitiesFINRA, requires brokers to provide written notice before engaging in any outside business activities. This, is a common source of allegations.We, analyze whether the activities truly required disclosure under FINRA’s rules. There, are certain exemptions, such as personal investments and non-securities businesses.Failure to SuperviseBroker-dealers, must establish supervisory systems to ensure compliance with regulations. Supervisors, can face charges for failing to reasonably supervise employees.Potential, defenses include showing the supervisory procedures met industry standards. Or, we may argue the supervisor wasn’t aware of the misconduct despite proper supervision.These, examples illustrate the complexity of FINRA disciplinary cases. Having, an experienced securities lawyer to navigate the rules and build a strong defense is crucial.

The FINRA Disciplinary Process Explained

If, FINRA initiates an investigation against you, it’s critical to understand the disciplinary process:1. Investigation StageFINRA, may request documents and information, or take sworn testimony in an on-the-record interview (OTR). It’s, essential to be strategic and have legal counsel during this stage.2. Potential Wells NoticeAfter, the investigation, FINRA may issue a Wells Notice indicating its intention to file charges. This, is your opportunity to make a persuasive Wells Submission arguing against charges.3. Complaint and HearingIf, FINRA proceeds, it will file a formal disciplinary complaint commencing the hearing process. This, is essentially a courtroom trial with witnesses, evidence, and legal arguments.4. FINRA Hearing Panel DecisionThe, hearing panel will issue a written decision determining any violations and sanctions. Sanctions, may include fines, suspensions, bars, or other disciplinary measures.5. Potential AppealsYou, can appeal an adverse decision to FINRA’s National Adjudicatory Council (NAC). Further, appeals can be made to the SEC and federal courts if needed.Having, an experienced FINRA lawyer from the outset is vital. We, can provide strategic guidance, leverage our insights into FINRA’s practices, and build the strongest possible defense.

Don’t Risk Your Livelihood – Hire a Top FINRA Defense Firm

There’s, one reason you’re on this website – you’re looking for an elite criminal defense law firm. 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 difficulties and challenges of going through a case.If, you’re accused of violating FINRA rules, schedule a consultation with our securities lawyers today. We’ll, provide candid advice about your options and the best path forward.Sometimes, prosecutors will only be fair if you respond with force. 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 legwork to be familiar with every single detail. Our, firm has excellent work ethics, and we constantly hold meetings to discuss and address all 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 assist. Our, attorneys work hard to find a solution, irrespective of the circumstances.Many, clients are embarrassed by their situation and don’t speak openly about the alleged issue. We, encourage open dialogue and recommend full transparency so we can provide the best legal advice.The, Spodek Law Group handles cases nationwide from our offices in Boston, New York City, and Los Angeles. If, you’re facing a FINRA investigation or disciplinary action, take the first step and call us today at (888) 564-5890.

Anatomy of a FINRA Investigation: What to Expect

So, FINRA has opened an investigation into your activities as a broker or firm. What, exactly does that mean and what should you expect? Here’s, a look inside the FINRA investigative process:The Cause for InvestigationFINRA, investigations can be triggered by various events, including:

  • Customer complaints about sales practices
  • Exception reports identifying potentially problematic trading
  • Referrals from other regulators like the SEC
  • Routine cycle exams or sweeps of firms
  • Your firm’s internal review and self-reporting

Regardless, of what prompts the investigation, you should take it extremely seriously. FINRA, has broad authority and resources to scrutinize your business activities.Information Requests and On-the-Record TestimonyAs, part of the investigation, FINRA will likely request a wide range of documents and records from you or your firm. This, may include:

  • Client account forms, correspondence, and trade confirmations
  • Emails, text messages, and other digital communications
  • Supervisory manuals, policies, and procedures
  • Training materials and compliance records
  • Financial statements and other books and records

FINRA, also routinely takes sworn investigative testimony through On-the-Record (OTR) interviews. These, interviews are similar to depositions, with FINRA staff asking detailed questions under oath.It’s, critical to have an experienced securities lawyer represent you during OTRs. The, testimony you provide can make or break FINRA’s case against you.Potential Charges and Wells ProcessIf, FINRA’s investigation finds potential violations, it will issue a Wells Notice. This, letter indicates the specific rules that may have been violated and gives you a chance to respond.The, Wells process allows you to make a Wells Submission explaining why charges shouldn’t be brought. An, effective Wells Submission can persuade FINRA to drop the matter entirely or reduce potential charges.Crafting, a compelling Wells Submission requires nuanced analysis of FINRA’s allegations and rules. This, is where an attorney’s expertise becomes invaluable.FINRA Disciplinary Complaint and HearingIf, FINRA decides to pursue charges, it will issue a formal disciplinary complaint initiating the hearing process. This, is essentially a courtroom trial with the following components:

  • Opening statements by both parties
  • Witness testimony and cross-examination
  • Admission of documentary evidence
  • Legal arguments from both sides
  • Closing arguments summarizing the case

The, hearing is conducted by a panel of two industry members and one hearing officer. Both, sides can call witnesses, present evidence, and make legal arguments.Having, an experienced FINRA hearing lawyer to zealously advocate for you is crucial. We, handle all aspects of disciplinary hearings, including:

  • Preparing witnesses and evidence
  • Conducting aggressive cross-examination
  • Presenting persuasive legal briefs and arguments
  • Handling appeals if an adverse decision is rendered

While, the FINRA hearing process is complex, we have the skills to mount a formidable defense. Our, goal is to avoid any sanctions that could jeopardize your career.Potential Sanctions and Negotiating SettlementsIf, FINRA finds violations occurred, it can impose a range of sanctions, including:

  • Monetary fines and penalties
  • Suspensions from working in the industry
  • Permanent bars from associating with FINRA members
  • Revocation of broker-dealer or firm registrations
  • Orders to cease certain violative conduct
  • Undertakings to revise policies, procedures, or operations

In, some cases, the most favorable outcome may be negotiating a settlement before charges are brought or after a hearing. Our, attorneys are skilled negotiators who have resolved many FINRA matters through settlements.We, analyze the potential for a negotiated resolution that avoids severe sanctions like permanent bars. If, a settlement is possible, we’ll leverage our insights into FINRA’s practices to secure the best terms.Throughout, the entire FINRA investigative and disciplinary process, our focus is protecting your livelihood. We, explore every possible defense strategy and resolution to keep you in business.

Frequent Questions About FINRA Defense Cases

Facing, allegations from FINRA can raise many questions and concerns. Here, are some frequent inquiries our clients have:What are the most common FINRA rules violations?Some, of the most frequent FINRA violations we see include:

  • Suitability violations for making unsuitable investment recommendations
  • Excessive trading or churning of client accounts
  • Misrepresentation or omission of material facts
  • Unauthorized trading in client accounts
  • Selling away or participating in private securities transactions
  • Failure to reasonably supervise employees and activities

However, FINRA’s rules cover a wide range of conduct. Virtually, any action that violates securities laws or FINRA’s regulations can trigger an enforcement action.How long does the FINRA disciplinary process take?The, timeline can vary significantly based on the complexity of the case. Simple, matters may be resolved in 6-12 months through a settlement.However, cases that proceed to a full disciplinary hearing typically take 12-24 months or longer. This, includes the hearing itself, the time for a decision, and any subsequent appeals.What happens if I receive a FINRA Wells Notice?A, Wells Notice indicates that FINRA intends to recommend filing charges against you. However, it’s not a final determination.You, have the opportunity to make a Wells Submission arguing why charges are unwarranted. An, effective Wells response can persuade FINRA not to pursue charges or limit the allegations.What sanctions can FINRA impose if I’m found liable?Potential, FINRA sanctions include:

  • Monetary fines and penalties up to $1 million for firms and $1 million for individuals
  • Suspensions from associating with FINRA members for fixed periods
  • Permanent bars prohibiting any association with FINRA members
  • Revocation of broker-dealer or firm registrations
  • Orders to cease violative conduct or undertakings to revise procedures

The, severity depends on the nature of the violations, whether the conduct was intentional, and other factors. Our, goal is to avoid any sanctions that could derail your career.

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