Davie Securities Litigation Attorneys

argument with stock brokerInvesting in securities like stocks or bonds is difficult for most people to handle on their own, which is why they often hire brokers and other investment professionals to help them. Unfortunately, some investment professionals engage in fraud that causes consumers to lose money.

If you have been a victim of securities fraud, you should consider contacting a Davie securities litigation attorney to discuss your legal options. The attorneys at Gordon & Partners offer a free, no obligation legal consultation and have detailed knowledge of federal and state laws on securities fraud. If you have a viable case, we are prepared to pursue all the money you lost.

Our lawyers take cases on contingency, which means we are not compensated unless we make a recovery on your behalf.

Contact Gordon & Partners today by calling us at 1 (855) 722-2552.

What is Securities Fraud?

There are many different types of securities you can invest in, including stocks, stock options, debt securities (corporate and government bonds), mutual funds, investment contracts, or mineral royalties or leases, among others.

Securities fraud involves a variety of actions meant to deceive or manipulate investors like you. Fraud can be committed by a variety of people and entities, including:

  • Stock brokers
  • Financial advisers
  • Corporations
  • Investment banks
  • Brokerage firms
  • Analysts
  • Private investors
  • Employees of a corporation

Our Davie securities litigation attorneys have detailed knowledge of many types of securities fraud. Some of the most common, include:

Fraud-on-the-Market

This happens when a company misrepresents or fails to disclose information about a company's financial performance to inflate the market price of a security and an investor uses this information to make a decision about buying or selling company stock.

If you were not given information or were given fraudulent information before you bought or sold a security, and you lost a substantial amount of money, you may be able to hold the company accountable.

Broker Churning

This happens when a broker gets a client to keep trading a stock to generate fees or commissions. This is a violation of the broker's duty as a fiduciary. Fiduciaries have a legal obligation to do what is in the best interests of their clients, not themselves.

You may be more at risk of broker churning if your broker has control of your account and can conduct trades without you. If you are receiving an excessive amount of notices about trades made in your account, it could be warning sign of churning. In most cases, your broker should be buying and holding securities instead of constantly buying and selling as this is usually the best way to grow your account.

Unsuitability

This occurs when a broker chooses unsuitable investments, given the information you have provided about your risk tolerance, financial state and future financial goals. Brokers have an obligation to obtain enough information to recommend appropriate investments. They should also continually evaluate your needs, as they may change.

If you lost money because your broker made unsuitable investments, our Davie securities litigation lawyers may be able to pursue the funds you lost. We may also be able to pursue other forms of compensation. This could include disgorgement, which is a measure of the money gained from fraud. Any fines paid because of fraud could be included in disgorgement as well.

Schedule a free legal consultation with a securities litigation lawyer in Davie today.

State and Federal Law on Securities Fraud

Securities fraud is illegal under federal law (Securities Act of 1933, Securities Exchange Act of 1934) and state law in Florida (Chapter 517 of Florida statutes).   

Federal Laws on Securities Fraud

The purpose of the Securities Act of 1933 is to provide full and fair disclosure of financial information about securities and prohibit deceit, misrepresentations and other types of fraud when securities are sold.

The act requires various pieces of information about securities to be disclosed to the U.S. Securities and Exchange Commission (SEC) during the registration process, including:

  • Description of the security
  • Financial statements certified by independent accountants
  • Information about the management of the company offering to sell the security

This information helps enable investors like you to make informed judgments about whether to purchase a security. The SEC requires companies to provide accurate information, but it does not guarantee accuracy.

Unfortunately, some companies and other entities that sell securities do not provide accurate information when registering securities. This is a common example of securities fraud.

There are also cases when a security is made available even though it has not been properly registered with the SEC. Under Section 5 of the Securities Act, it is unlawful for anyone to directly or indirectly do the following with a security that has not been properly registered:

  • Use any means of transportation or communication in interstate commerce or the mail to sell a security
  • Carry or cause to be carried through the mails or in interstate commerce by any means or instruments of transportation an unregistered security for the purpose of being sold or delivered after being sold

The Securities and Exchange Act of 1934 established the SEC and gave it the authority to prohibit certain types of conduct in the markets. For example, under Section 17 of the law, it is unlawful for anyone to use the mail or any means of transportation or communication in interstate commerce to do the following things when offering or selling a security:

  • Use any device, scheme or artifice to defraud
  • Use a device, scheme or artifice to obtain money or property by means of any untrue statement of material fact or omission to state a material fact
  • Use any device, scheme or artifice to engage in a transaction, practice or course of business that operates or would operate as a fraud or deceit on the person buying the security

Florida Law on Securities Fraud

Chapter 517.301 of Florida statutes prohibits the same actions that are prohibited under Section 17 of the Securities and Exchange Act of 1934. Section 517.311 of the law says it is illegal for any person issuing or selling a security to misrepresent that the security or company offering it has been guaranteed, sponsored, recommended or approved by the state, U.S., or any agency or officer of the U.S.

Florida also requires all non-exempt securities to be registered with the Office of Financial Regulation of the Financial Services Commission. It is also illegal to sell a security without providing the purchaser with a prospectus that meets the requirements of the Financial Services Commission.

Applications for registration of a security must include a variety of information, including:

  • Capitalization of the issuer of the security
  • Balance sheet showing assets and liabilities no more than 90 days before the date the balance sheet was filed
  • The character of the business done by the issuer
  • Detailed statement of the plan the issuer has for doing business

If you were a victim of securities fraud under any of the laws above, contact a Davie securities litigation attorney for a free legal consultation. We may be able to pursue the money you lost due to fraud.

Fill out a Free Case Evaluation form today.

Statute of Limitations on Securities Fraud

Every lawsuit is governed by a statute of limitations. These laws limit the amount of time you have to file a lawsuit and pursue compensation for the damages you have suffered.

The statute of limitations for violations of Florida laws on securities fraud is two years from the time the facts that gave rise to the case were discovered (Florida Statute 95.11(4)(e)). However, claims cannot be filed more than five years from the date the violation occurred. 

Lawsuits concerning violations of federal securities laws in the Securities and Exchange Act of 1934 have the same statute of limitations, which is stated in 28 U.S. Code § 1658.

However, it can be very difficult to determine precisely when the statute of limitations for your case began to run. This is why you should consider working with a securities litigation attorney in Davie.

Contact Gordon & Partners right now by calling 1 (855) 722-2552.

Contact a Davie Securities Litigation Lawyer Now

Securities fraud can be financially devastating for victims because it often involves large sums of money. For example, many people are using retirement funds, life savings or inheritances to invest in securities.

Our Davie securities litigation attorneys understand this and are committed to fighting to recover all the compensation you are entitled. We want fraudsters to be held accountable for violating the law and taking money from you or causing you to lose money.

Schedule a free, no obligation legal consultation today to discuss your case. There is no risk to discuss what happened to you and how we may be able to help. Our skilled attorneys have detailed knowledge of securities fraud and the laws prohibiting this practice.

Contact our securities litigation attorneys in Davie by calling 1 (855) 722-2552.

For a FREE, no-obligation review of your claim, call us at 1 (855) 722-2552 or complete a Free Case Evaluation form to reach us online

Gordon & Partners - For The Injured®

1 (855) 722-2552

Gordon & Partners, P.A.

4114 Northlake Blvd
Palm Beach Gardens, FL 33410
Phone: 561-333-3333

Gordon & Partners - Davie

10650 Florida 84 #210
Davie, FL 33324
Phone: 754-333-3333

Gordon & Partners - Stuart

729 SW Federal Highway #212
Stuart, FL 34994
Phone: 772-333-3333

Gordon & Partners - Miami

The White Building - 2nd Floor
1 Northeast 2nd Avenue
Miami, FL 33132
Phone: 1 (855) 722-2552
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