Has Your Broker Been Sued For the Same Thing That Has Happened to You

Securities, Precious Metals and Commodities Fraud and Mismanagement FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

The Financial Industry Regulatory Authority (FINRA) is responsible for licensing and overseeing both broker-dealers and account executives to make sure that they comply with the federal securities laws and the rules and regulations adopted by FINRA. If FINRA determines that a broker-dealer or an account executive violates these statutes or regulations, FINRA can institute an “enforcement” action against them. In a small number of these types of actions, the settlement agreement or final decision will order that certain investors be reimbursed for some or all of their losses. However, in the majority of cases, the investor will only have an opportunity to recover his or her losses, if a FINRA arbitration is filed.

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are charged with enforcing federal statutes relating to securities and commodity, respectfully. If the SEC or the CFTC make a determination that such statutes or the rules and regulations flowing therefrom have been violated, each can institute a federal court enforcement action against the guilty parties. In these proceedings, the SEC or the CFTC, as part of the relief requested, may ask the court to order, among other things, disgorgement of ill-gotten gains from the named defendants. If however, there are other individuals involved in the fraud or misrepresentations that were perpetrated upon you, which were not sued by the SEC or CFTC, the only way that you will be able to seek recompense from such individuals is to file your own action, which might include your brokerage firm and/or associated person, if they sold the investment to you.

If after reviewing the information contained in this section of our website, which has been released and published by FINRA, the SEC or the CFTC, to see if you have suffered damages as a result of any of the activity described, immediately contact the law office of Russell Forkey for your initial free consultation.