Securities Law Attorney in Long Island, New York
Securities Fraud
Securities fraud can be described as deceptive practices in the stock and commodity markets. Generally, securities fraud occurs when investors are enticed to part with their money based on untrue statements. Securities Fraud is illegal. Examples of securities fraud include:
Providing false information on a company financial statement
Providing false information on the Securities and Exchange Commission (SEC) filings
Lying to the company auditors
Insider trading
Stock manipulation schemes
Churning
Churning occurs when a broker engages in excessive trading in an account, often in an attempt to generate additional fees and commissions. Often times the broker will sell the securities that have appreciated to show a small profit while keeping the losers.
Misrepresentation
Often, a stockbroker or investment advisor may misrepresent material facts by omitting information or by not disclosing risks that may be associated with an investment to the client. In both instances, the investment professional can be held liable if the client experiences losses because the professional failed to give the client proper advice.
Unsuitability
The law imposes a duty upon securities brokers and investment advisors to only recommend securities that they reasonably believe are suitable for the client. The broker's belief must be based upon a reasonable inquiry of the client's investment objectives, financial situation, tax status and any other relevant information known by the broker.
Failure to Execute Orders
Financial advisors and securities brokers have a duty to properly execute client orders. The broker also has a duty to obtain the best price available for the customer. If the customer places an order to sell a security if the price declines to a certain level, the broker is obligated to do so. Failure to meet these obligations results in liability for any resulting losses.
Lawrence M. Gordon, Attorney at Law, P.C. has offices in Bellmore, NY, and assists clients throughout Long Island, including: the north shore of Long Island, The Town Of Oyster Bay, The Town Of North Hempstead, The Town Of Hempstead, The Town Of Huntington, Nassau & Suffolk Counties & throughout the Five Boroughs of The City Of New York.