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Securities Lawyers Offering Sophisticated Representation

Investors place great trust in financial professionals, but this trust is not always rewarded. When a broker or investment advisor fails to uphold their legal responsibilities, a client can suffer devastating losses. If you are concerned that a financial professional has acted improperly regarding your account, you should contact Varbero Casagrande. Our attorneys, Anthony Varbero and David Casagrande, provide excellent legal representation in claims arising from but not limited to issues such as unsuitability, account churning, and fraud. While we are based in New York and Florida, we advocate for investors nationwide.

Securities Law

Securities include the full range of financial instruments that represent the rights of investors to voting rights, income, and other benefits. Stocks, treasury stocks, bonds, and notes are all securities. When an investor dispute involves an investor and a party registered with FINRA, and the claim is filed, it may be heard in arbitration through the forum provided by FINRA. Cases involving registered individuals or entities can be heard in FINRA arbitration, which is a forum with which our securities attorneys are familiar. When arbitration is required by a written agreement, the dispute involves a member of FINRA, and the dispute involves the securities business of the broker or brokerage firm, it must be arbitrated through FINRA.

Unsuitability

FINRA Rule 2111 mandates that all member organizations must utilize due diligence to learn critical facts related to each customer and order. Broker-dealers must know their clients and their clients’ objectives in investing so that they do not make unsuitable investment recommendations to customers. The suitability of an investment depends on your risk tolerance, your sophistication as an investor, and your stated preferences and goals. For example, if you are an elderly investor trying to maintain your retirement funds, and your investment manager invests a huge proportion of those funds in volatile oil and gas stocks, a securities lawyer may help you bring an unsuitability claim. As an investor, you can make a stockbroker misconduct claim alleging unsuitability if an investment professional fails to follow FINRA Rule 2111.

Failure to Supervise

Financial and securities brokerage firms have a legal duty to supervise their brokers. This is intended to prevent securities law violations. A brokerage firm needs to supervise a broker’s private securities transactions, securities recommendations to customers, and outside business activities. If an individual broker is negligent or acts unlawfully against a client’s interests, and the client suffers damages because of the wrongdoing, the firm may be held accountable for the investor’s losses under a theory of failure to supervise. Under the Securities Exchange Act of 1934, the SEC is authorized to initiate an enforcement action against a legal or compliance professional who does not provide adequate supervision of stockbroker-dealer personnel. This is a factual determination, but also a subjective determination.

Fraud

Fraudulent or deceptive activities that involve stock or commodities markets are known as securities fraud. This can occur when investors are asked to part with their money based on false statements or when a public company makes false statements in financial reports. It may involve insider trading or front running. Federal and state laws prohibit securities fraud. Our securities attorneys can help you determine which laws may best support your claim.

Federal laws that define securities fraud include the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, and the Trust Indenture Act of 1939. The federal offense of securities and commodities fraud covers any artifice or scheme to defraud someone or fraudulently obtain money in connection with securities, commodity options, and commodities, whenever an issuer of a security is required to register or file reports under the Securities Exchange Act of 1934. Under federal and state securities fraud laws, a state’s attorney general has the power to investigate any person, partnership, or corporation that employs a scheme or device to defraud or get money or property through misrepresentations or false pretenses or promises.

Account Churning

Account churning is an unlawful practice under federal laws and industry rules. Churning happens when a broker makes excessive trades on a client’s account in order to create a commission that will enrich them at the client’s expense. This is illegal under the Securities Exchange Act of 1934, which prohibits someone from using deceptive, manipulative, or other fraudulent contrivances or devices to complete securities transactions. Under 17 C.F.R. § 240.15c1-7, “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” include excessive transactions. Similarly, under FINRA Rule 2111, a broker needs to have a reasonable basis to think that a specific transaction is suitable for a client.

Employment Litigation

Employment litigation can arise from disputes related to discrimination, harassment, retaliation, and wages, among other issues. Federal and state laws govern these claims. For example, federal employment laws include Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and the Family and Medical Leave Act (FMLA). However, sometimes a state law may provide a greater range of protections than the corresponding federal law does. We often advocate for clients in front of federal and state agencies and in courts.

Commercial Litigation

Commercial litigation includes many types of disputes that arise between businesses or between people involved in managing or operating a business. These can involve contract disputes, business torts, partnership or joint venture disputes, breach of fiduciary duty allegations, shareholder disputes, and intellectual property litigation. Commercial litigation can quickly become expensive if the case proceeds through the courts, and the stakes are often high. In some cases, a contract requires that the parties resolve a commercial dispute through arbitration. In other cases, the parties may voluntarily choose arbitration or mediation.

Consult an Experienced Attorney for a Complex Dispute

If you need a securities lawyer to pursue compensation from a broker or firm, or if you are involved in employment litigation or a commercial dispute, you should contact Varbero Casagrande. We represent clients nationwide from our offices in New York and Florida. Call our New York Office at: (646) 378-4400, or our Florida Office at: (954) 998-7910 or contact us online for a free consultation.

Stock Fraud Arbitration Process
1
Filing Complaint - Once we have determined that we will pursue your case, a Statement of Claim would be drafted. The statement of claim will contain the basic facts about your case and would be filed with the Financial Industry Regulatory Authority, or FINRA. At this time a monetary demand would be put to the broker dealer and broker who serviced your account, as well as a presumption of liability.
2
Choosing Arbitrators - When your Statement of Claim has been filed, both parties rank a list of arbitrators set forth by FINRA. These arbitrators will be the ones who will decide your case. During this process, we will review prior rewards and resumes from the list of arbitrators that were randomly selected by FINRA. Like choosing a jury, both sides will have the opportunity to reject certain arbitrators. When we decide which ones we like, a list is sent to FINRA representing our final selection.
3
Discovery - Before any case goes to arbitration, both sides are required to provide documents that will be used to help defend and prosecute the case. There are deadlines set forth by the arbitrators on when these documents must be turned over to the parties. As a claimant, you will be required to produce your tax returns, account statements and confirmations. Additionally, you will have to give any correspondence between you and the broker dealer, as well as with the broker who serviced your account. We will help and guide you through this process.
4
Mediation / Settlement - Through out the entire discovery process, both sides would make an effort to resolve the case without having to go to arbitration. If both sides are close to settling but cannot agree on a specific amount, often the case would be heard by a mediator. This process is much less costly than arbitration. The mediator’s job is to hear both sides and determine the strengths and weaknesses of the case. He/she will do their best to have both sides compromise and settle the case.
5
Arbitration - If both sides cannot settle, then the case goes to arbitration. Arbitration usually consist of three panel members. An arbitration hearing is very similar to a trial. The hearing will be located where you livid during the time the dispute took place. There is no specific time period on how long a hearing will last. Usually they last three to five days but can go as long a two to three weeks. Within thirty days of the conclusion of the hearing, the panel will rule on the case. After the ruling, the parties have 30 days to comply with the award.
Client Reviews
★★★★★
I was represented by Mr. Varbero and Mr. Casagrande in a FINRA arbitration matter. They both were very professional and knowledgeable about my case. I was very satisfied with the outcome and their expertise. I would highly recommend them to anyone in need of an attorney. C. Sabbio
★★★★★
Thanks to the team of Mr. Varbero and Mr. Casagrande who meticulously prepared the case for my mediation hearing. I am most grateful for their hard work and attention to detail. These factors helped settle the case favorably. J. Heller
★★★★★
As a former Law Enforcement Officer, I’ve dealt with plenty of attorney’s over the last 24 years. Mr. Varbero and Mr. Casagrande were top notch. Very Competent, detailed and they over deliver. Highly recommended by me. W. Fowlkes
★★★★★
I would love to thank you guys for a great job as my lawyer in getting me the best settlement. I am grateful for having you guys represent me. Anyone I know who needs a lawyer, I will send over to the firm. R. Johnson
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Fill out the contact form or call our New York office at (646) 378-4400, or our Florida office at (954) 998-7910, to schedule your free case consultation.