Arizona Broker Fraud Attorney
Before a stockbroker can recommend or sell an investment to a customer, the investment must be approved by the brokerage firm. Many times, however, stockbrokers sell investments that have not been approved. This is known as "selling away" from the firm. When a stockbroker does so, the customer may have a cause of action if the investment loses money.
At the law firm of Bade Baskin Richards, our lawyers prosecute and defend claims arising out of selling away claims in arbitration and litigation. From our law office in the Phoenix suburb of Tempe, we serve clients in Arizona and throughout the southwestern United States. Our attorneys are admitted to practice only in Arizona, and we associate with local counsel to handle cases in other jurisdictions.
There are many reasons why a stockbroker may sell securities not approved by the firm. Here are some examples:
- To make private placements in securities not held or offered by the firm
- To earn commissions from the promoter of the investments and not have to share them with the brokerage firm
- To sell investments associated with the broker's outside business activities that are separate from the firm
Stockbrokers often invest in the outside activity or are actually the promoters of the investment. Brokerage firms have a duty to supervise stockbrokers and ensure they sell approved investments. Each case is different, but many times stockbrokers use their firm's e-mail address, meet with clients at the firm to discuss the outside investment or brazenly sell an investment without attempting to conceal it from the firm. If the brokerage firm fails to properly supervise and does not detect sales of unapproved products, the firm could be held responsible for investment losses.
If you are involved in a case where there is or may be a selling away claim, your choice an attorney to represent you is one of the most important decisions you will make. Lawyer Alan Baskin has more than 20 years of securities law experience, including seven years prosecuting these types of cases administratively, civilly and criminally, first as senior counsel in the Enforcement Section of the Securities Division of the Arizona Corporation Commission, and then as an Assistant Attorney General in the Organized Crime and Fraud Section of the Arizona Attorney General's Office. Bill Richards spent 11 years handling securities industry disputes on behalf of several large brokerage firms, and has broadened his practice to include investor representation.
For More Information About Selling Away
For more information or to schedule a consultation with Phoenix selling-away scheme attorney Alan Baskin, call 888-366-1847 or fill out the contact form on this site.
