Houston Investment Law
The Securities and Exchange Commission, founded in 1934, protects investors and consumers from stock fraud and also investigates private investors believed to be committing securities fraud. Insider trading is an illegal practice using non-public information of a corporation to sell and purchase stocks, bonds, or other financial entities.
The Spencer Law Firm, PC has extensive experience with the securities laws and regulations and with representing investors in claims against the following:
- The issuer of a security
- The promoter of a security that induced the investor to purchase the security
- The broker who recommended certain activity in connection with a security or who managed an investor’s security account
- The broker-dealers who employ and are responsible for supervising the investor’s broker
Probably the most famous case of private investor fraud is that of Bernie Madoff, who initiated a Ponzi scheme that defrauded thousands of people of billions of dollars. Investors like Madoff are required to follow the same securities laws that govern corporations and financial advisors or they face prison terms and fines imposed by the federal government.
Investment laws in Houston
The Private Securities Litigation Reform Act delineates the elements that must be present in a private investor fraud case. These elements include the following:
- The defendant must have made a material misrepresentation or omission
- The defendant must have acted with a wrongful state of mind
- The material misrepresentation or omission was made in connection with the purchase or sale of a security
- The plaintiff or victim relied on the misrepresentation or omission
- The plaintiff or victim suffered an economic loss as a result of the alleged fraud
- The plaintiff or victim can allege and prove loss causation
No matter the amount of your loss, you must file a claim to recover. To maximize the amount of recovery and minimize your losses, your best bet is to seek representation by an attorney skilled in Houston investment laws.
Most claims against brokerage firms go to arbitration since most brokerage agreements require binding arbitration as an element of the brokerage contract. Our Houston investment lawyers at The Spencer Law Firm, PC can help guide you through the arbitration process. Our attorneys also know how to effectively bring securities claims against corporations via class action suits.
