Securities Lawyer

A securities lawyer represents investors who lost money because of broker misconduct, investment fraud, or a brokerage firm's failure to supervise. At Weltz Law, those claims are pursued in FINRA arbitration, the private forum where most disputes between investors and brokers are decided.

Weltz Law is a national securities law practice that works inside the FINRA dispute resolution forum. Our securities lawyers represent individual investors, retirees, trusts, estates, non-profits, and small businesses. Cases are handled in house, from the first account review through the final hearing.

This page is the starting point for our securities practice within our broader practice areas. Each section below links to a page with more detail on that claim or product.

What Does a Securities Lawyer Do for Investors Who Lost Money?

A securities lawyer reviews your account records to see whether your losses may trace back to misconduct by a broker or brokerage firm. When the facts support a claim, our securities attorneys file it in FINRA arbitration. From there, they build the evidence, pick arbitrators, handle discovery, and present the case.

Securities law is the set of rules that governs how investments are sold, recommended, and managed. Brokers and the firms they work for must follow those rules. When they do not, investors may have a claim.

Not every loss is a claim, though. Markets drop. Good investments sometimes lose money.

The question our securities law attorneys ask is different. Was the investment right for you? Were the risks explained honestly? Did someone trade your account without permission or ignore red flags? Those answers decide whether a claim may exist.

What Securities Claims Do Our Securities Lawyers Handle?

Our securities lawyers handle claims for broker misconduct, negligence, fraud and misrepresentation, and churning. The work also covers breach of fiduciary duty, breach of contract, alternative investment losses, and state securities law violations. Many cases include more than one of these claims.

Start with the area closest to your situation:

• Broker misconduct: Unauthorized trading, over-concentration, margin abuse, theft, and failure to supervise. See our broker misconduct page.
• Broker negligence: Unsuitable recommendations, failure to diversify, failure to execute trades, and careless account handling. Read about broker negligence claims.
• Fraud and misrepresentation: Lies, hidden risks, Ponzi schemes, pump and dump schemes, embezzlement, and elder financial abuse. Learn about fraud and misrepresentation claims.
• Churning and excessive trading: Trading an account too often to earn commissions. See churning and overtrading.
• Breach of fiduciary duty: A broker putting their own interests ahead of yours. Read about breach of fiduciary duty.
• Breach of contract: A firm or broker failing to follow the account agreement. Learn about breach of contract claims.
• Alternative investment losses: REITs, private placements, annuities, structured products, and other complex products. See alternative product securities.
• Alternative product scams: Products sold with false promises or hidden structures, such as certain Delaware statutory trusts. Read about alternative product scams.
• State securities law claims: Claims under state laws that protect investors, often called blue sky laws. Learn about blue sky law claims.

If you are not sure which category fits, that is normal. Sorting it out is part of the first review.

What Are the Warning Signs of Securities Fraud or Broker Misconduct?

Warning signs include losses that do not match the market, trades you never approved, heavy trading, missing paperwork, and promises of guaranteed returns. Any one of these is worth a closer look. Several together are a stronger signal that something may be wrong.

Some signs show up on your statements. Losses far worse than the overall market. A lot of trades you do not remember discussing. Fees and commissions that keep climbing. Statements that do not match what your broker told you.

Others show up in how the broker behaves. Pressure to invest quickly. Promises of unusually high or "guaranteed" returns. Complex strategies nobody will explain clearly. Delays when you ask to withdraw money. Frequent changes in who manages your account.

Here's the part most investors don't realize until much later. The new account form may list your goals and risk tolerance differently than you remember. That one document can shape the whole case. Our page on the most common claims of stockbroker negligence covers more warning signs.

Which Investment Products Lead to the Most Securities Claims?

Complex, high-fee, and hard-to-sell products lead to many securities claims. These include non-traded REITs, private placements, variable annuities, structured products, hedge funds, and oil and gas programs. Ordinary stocks and bonds can also lead to claims when sold or concentrated unsuitably.

Products that often show up in our securities attorneys' cases include:

• Non-traded REITs: Real estate investment trusts that are not listed on an exchange and can be hard to sell. See REIT losses.
• Private placements: Private offerings with limited disclosure and high risk. Read about private placement losses.
• Variable annuities: Insurance products with investment features, high fees, and surrender charges. Learn about variable annuities.
• GPB Capital and suspended private funds: Funds that stopped paying distributions or froze redemptions. See GPB Capital losses.
• Hedge funds: Private funds with complex strategies and limited transparency. Read about hedge fund fraud.
• Ponzi schemes: Fake investments that pay earlier investors with new investors' money. Learn about Ponzi scheme losses.

The product is rarely the whole story. What matters is whether it fit the investor and whether the risks were explained honestly.

Where Are Securities Claims Against Brokers and Brokerage Firms Decided?

Most securities claims against brokers and brokerage firms are decided in FINRA arbitration, not in court. Nearly every brokerage account agreement includes an arbitration clause. FINRA arbitration is a private process where a panel of one or three arbitrators hears the case and issues a binding award.

FINRA stands for the Financial Industry Regulatory Authority. It oversees brokerage firms and runs the arbitration forum. Learn more about what FINRA is and how FINRA arbitration works.

FINRA arbitration is usually faster and less formal than a court case. Customers generally have the right to an all-public panel, meaning arbitrators without close ties to the securities industry. The tradeoff is finality, since an award can be challenged only on narrow grounds.

For a closer look at claims in the forum, visit our FINRA attorney page.

What Is the Difference Between Securities Fraud and Broker Negligence?

Securities fraud involves intentional lies or hidden facts meant to mislead an investor. Broker negligence involves carelessness, such as recommending something unsuitable without proper research. Both can support a claim. Fraud usually requires more proof about what the broker knew and intended.

Think of it this way. A broker who tells a retiree a risky product is "as safe as a CD," knowing it is not, may have committed fraud. A broker who never bothered to learn the product's risks before recommending it may have been negligent.

Many cases include both claims. Our securities fraud lawyers look at what the broker said, what the broker knew, and what the records show before deciding which claims fit.

Do State Blue Sky Laws Give Investors Additional Securities Claims?

They can. Every state has its own securities laws, often called blue sky laws, that protect investors from fraud and unregistered sales. These state claims can sometimes be added alongside FINRA claims. The rules and remedies vary from state to state.

Blue sky laws got their name from the idea of stopping people who would sell "the blue sky" itself. They often require securities and the people who sell them to be registered with the state.

Some state laws allow remedies such as rescission, which means undoing the purchase and returning the money paid. Our blue sky law claims page explains more.

What Damages Can a Securities Lawyer Pursue in FINRA Arbitration?

A securities lawyer may pursue several types of damages, including out-of-pocket losses, well-managed account damages, market-adjusted damages, interest, and costs. In some cases, attorney's fees and punitive damages may also be requested. The panel decides what, if anything, to award.

Out-of-pocket damages measure what was actually lost. Well-managed account damages compare the account to how it might have performed if handled properly. Market-adjusted damages account for how the overall market moved.

Punitive damages are meant to punish especially bad conduct, not just repay a loss. They are requested in some cases and awarded only in limited circumstances. Read more on our punitive damages page.

No one can predict what a panel will award. What our team focuses on is building a clear record of what happened and what it cost.

Can a Broker Remove a Customer Complaint From BrokerCheck Through Expungement?

A broker can ask a FINRA arbitration panel to expunge, or remove, a customer complaint from their record. Customers may have the right to take part and oppose the request. Expungement matters because BrokerCheck is how future investors research a broker.

BrokerCheck is FINRA's free online database of broker and firm histories. Complaints, regulatory actions, and terminations all appear there.

When a broker tries to erase a complaint you filed, it can feel like your experience is being written out of the record. Our securities lawyers represent customers in these matters. Learn more about expungement.

Can Investors in Any State Work With Our Securities Lawyers?

Yes. Our securities lawyers represent investors nationwide. FINRA arbitration runs hearing locations across the country, and consultations can happen by phone or video. Where needed, our team works with local counsel.

Customer cases are usually heard at a FINRA hearing location near where the investor lived when the events happened. That means you generally do not need to travel far for your hearing.

Our cities and states we help page lists state and city pages with more local information.

What Should Investors Do Right Away If They Suspect Securities Fraud?

Save your records, write down what you remember, and have the account reviewed before making big changes. Acting early protects evidence and keeps deadlines from running out. It also helps you avoid signing anything that could weaken a claim.

A few early steps make a real difference:

• Save everything: Keep account statements, trade confirmations, emails, texts, and letters.
• Write a timeline: Note key dates, conversations, and what the broker told you.
• Read before signing: Be careful with any "account update" form or new risk questionnaire the firm sends.
• Put complaints in writing: A written complaint creates a record of when you raised the problem.
• Get a review: Talk with a securities attorney before deadlines get close.

It is tempting to confront the broker directly. That is understandable. But it often helps to talk with someone outside the firm first.

How Long Does a Securities Claim Take, and What Deadlines Apply?

Securities claims in FINRA arbitration can take several months to more than a year, depending on complexity and settlement talks. The FINRA eligibility rule generally bars claims filed more than six years after the event that caused the dispute. State deadlines may be shorter.

Many investors do not notice a problem right away. Losses build slowly, or a product looks fine until it suddenly freezes.

The question of when the clock started is often disputed. Our securities lawyers check the dates of each trade and recommendation at the very first meeting. Settlement can happen at any stage, often after both sides have exchanged the key documents.

How Do Our Securities Lawyers Handle a Case From Start to Finish?

Our securities lawyers move each case through clear stages inside the FINRA forum. At each step, clients get a plain explanation of what is happening, what choices they face, and what comes next.

The process usually looks like this:

• Account review: Our team reads the statements, trades, and account forms and checks the six-year window.
• Statement of Claim: Our securities attorneys draft and file the written claim that starts the FINRA arbitration.
• Arbitrator selection: Our team researches each name on the arbitrator list before striking and ranking.
• Discovery: Our attorneys request the firm's records, including supervisory files, under FINRA's discovery guide.
• Mediation and settlement: Our team weighs any offer with you, and many cases resolve here.
• Final evidentiary hearing: If the case does not settle, our securities lawyers present it to the panel through witnesses, exhibits, and argument.

Not every case reaches every stage. Some settle within months. Others go all the way to a panel award.

Why Do Investors Choose Weltz Law as Their Securities Lawyers?

Weltz Law focuses on investor claims inside the FINRA forum. Our securities lawyers handle every case in house and represent investors across the country. That focus keeps our attention on the rules, arbitrators, and procedures that decide these claims.

Investors who come to us have often just taken a serious loss. Some are retirees. Some are trustees or business owners responsible for other people's money. All of them want straight answers.

That is what our team aims to give. A plain-language review of what happened, what claims may exist, and what the process will ask of you. You can meet our attorneys to learn more about the team.

Talk With a Securities Lawyer at Weltz Law

If you think a broker or brokerage firm caused your investment losses, the six-year window is already running. A conversation with a securities lawyer can help you understand what happened and whether a claim may exist.

Our securities lawyers represent investors, retirees, trusts, and small businesses nationwide in FINRA arbitration. Bring your account statements, trade confirmations, and a short timeline if you have them. Contact Weltz Law today to talk through your situation.