Rex Securities Law-Alabama Stockbroker Malpractice Investment Fraud Attorney
After spending 4 years in the U. S. Air Force, Robert Rex, Esq. obtained his bachelor’s degree in accounting and then graduated from law school, joining the bar associations of Florida and Texas. He practiced as a Certified Public Accountant for six years specializing in tax law with two national public accounting firms.
After a couple of years as in house counsel for an oil and gas exploration company, he commenced his law career and soon discovered that his background in accounting was great preparation for focusing his law practice on the representation of victims of stockbroker malpractice and securities fraud.
In the 1990’s his first investment loss recovery case was the representation of an elderly widow who came into the office because thought something was not right about her investment account. Working with an older lawyer who was one of the leaders in the field of investment loss recovery at the time, after a year of trial preparation and several weeks of arbitration hearings, an arbitration panel awarded $2 million dollars, much to the delight of their client.
Since that time Mr. Rex has represented hundreds of victims of stockbroker malpractice, investment fraud and theft. We understand that losing a substantial amount of your nest egg, especially for the retired and those hoping to be retired is a serious matter.
Our practice is limited to the representation of victims of securities fraud and stockbroker malpractice. We represent clients nationwide and worldwide for victims who have accounts with U. S. registered brokerage firms.
In most cases representation is handled on a contingent fee basis and we do not charge to evaluate a case.
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
The Most Common Types of Securities Fraud & Stockbroker Malpractice
- Unsuitable Investments – Suitability is the most common form of abuse we see.One size does not fit all when it comes to investment recommendations. What may be suitable for a 30-year-old with a high income and a finance background is not suitable for a 75-year-old retiree living on social security and income from a 401K nest egg. The former can afford to take risks that the latter cannot. Brokers have a duty to make recommendations suitable considering the customer’s age, health and level of financial sophistication.
- Churning – Excessive trading (buying/selling) for the purpose of generating commissions is a common abuse. If you are receiving lots of trade confirmations or if your statements are many pages long, you might be a victim of churning.
- Unauthorized Trading – Unless you have granted, in writing, permission for the broker to trade your account without first consulting you on each trade, the broker is required to obtain your permission prior to any purchase or sale in your account.
- Overconcentration – We are all familiar with the saying: “Don’t put all your eggs in one basket” Unfortunately, some stockbrokers are not familiar with the adage. More likely, due to the commissions which can be earned on high commission paying products such as REITs and other alternative investments, the broker violates the adage and puts too high a percentage of the account in a single stock, limited partnership, private placement or other alternative investment, often leading to large losses.
- Misrepresentations and Omissions – While a broker is obligated to provide you with all the facts related to a particular investment, both the good and the bad, as a practical matter, that does not always happen. It is not uncommon for the broker to tell you what he knows you want to hear, “This investment will provide a steady and dependable income stream, kind of like a bond, and an opportunity for some capital gains, 5 or 6 years down the road”, leaving out all the risks associated with the investment.
- Theft – Despite the many steps taken by firms to prevent misappropriation from customer accounts, the unscrupulous broker can still find a way to steal. We have seen it a number of times over the years, including cases where the broker creates fake statements and directs the authentic firm=prepared statements to an address he controls, where he receives and destroys them.
Stockbroker malpractice and securities fraud takes many forms including improper use of margin borrowing, providing inaccurate and misleading broker prepared account summaries, elder financial abuse , breach of fiduciary duty, failure to supervise, breach of contract, negligence, failure to provide prospectus, investment guarantees, unlicensed broker, lack of due diligence, pressure sales tactics, cold calling to gain trust, affinity fraud, Ponzi schemes, pump and dump penny stocks, “I put my Mom in this stock” and selling away.
Securities Regulators in Alabama and Nationwide
The primary role of state and federal securities regulators is to enforce laws regarding securities transactions to ensure truth and fairness and to deter misconduct. The regulators may bring disciplinary and/or criminal action against those violating the securities laws but they do not assist the aggrieved investor with recovery of money.
You will need to hire a lawyer to successfully pursue recovery of losses. We suggest that you hire a lawyer who specializes in this esoteric area of the law, and we suggest that you seek advice regarding your situation before filing a complaint with any regulator.
Why? We say this because we have seen situations where a victim files a regulatory complaint and the regulator is either not interested in the cause or fails to do a thorough job of investigating the matter, leading to a dismissal of the complaint. Remember these regulators are government agencies which are often understaffed, overworked and have no real incentive to prevail.
Should your regulatory claim be dismissed as a result of a cursory review you will create a hurdle you have to later overcome when it is presented as a defense by the brokerage firm. Since regulators aren’t charged with advocating recovery for you, even if they prosecute your claim, they don’t recover money for you and you will still have to hire a lawyer. That is why we advise against filing a regulatory claim prior to pursuing your case in FINRA arbitration.
Alabama Securities Commission – According to their website:
“THE ALABAMA SECURITIES COMMISSION’S MISSION IS TO PROTECT INVESTORS FROM SECURITIES FRAUD AND PRESERVE LEGITIMATE CAPITAL MARKETS IN ALABAMA
The Alabama Securities Commission (ASC) regulates the securities industry in Alabama. The Commission is committed to protecting investors against securities fraud and provides aggressive enforcement actions against any firm or individual who has violated the Alabama Securities Act or other state and federal statutes to the detriment of Alabama investors.
The Alabama Securities Act provides for the licensing and regulation of securities broker-dealers, agents, investment advisers and investment adviser representatives, and financial planners.
The Commission regulates the individual securities through registration. All of the above entities must be registered with the ASC to conduct business in Alabama unless subject to a statutory exemption from registration.
The Commission promotes financial literacy to all citizens and students in Alabama by providing presentations, free information and access to literature for financial education.
You can prepare yourself to make an informed investment decision through Broker Check or contacting the Commission to determine if the representative and firm with whom you wish to do business are properly registered in Alabama. Our staff can also provide free information relating to the disciplinary history (crime, complaints, civil law suits, etc), educational background and work experience of a firm or representative.”
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition, brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
See below for more on FINRA arbitration, which is how virtually all disputes between customers and stockbrokers are resolved.
The North American Securities Administrators Association (NASAA)-According to their website: “The North American Securities Administrators Association (NASAA) represents state and provincial securities regulators in the United States, Canada and Mexico.
NASAA members are the closest regulators to local communities, small businesses and the investing public throughout North America. Members of NASAA have a multifaceted mission of protecting investors from fraud and abuse, conducting investor education, providing guidance and assistance via the established regulatory framework, and ultimately helping power the North American economy by ensuring the integrity of the financial markets.”
FINRA Arbitration
Likely unbeknownst to you at the time, when you opened your brokerage account, contained in the fine print on the account opening documents is a clause whereby you agreed to waive your right to go to court and agreed that any dispute would be resolved utilizing the FINRA Dispute Resolution Services.
FINRA arbitration is generally much quicker and less costly than court litigation. Cases are typically resolved in 12-18 months compared to the several years or more it may take for a commercial case to be resolved in court.
Depending on the circumstances in your case we may be willing to advance some or all of the costs.
Recover Your Investment Losses Now With Rex Securities Law
If you have suffered investment losses in your brokerage account, contact us for a complimentary consultation with an experience securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker dealers.
Representing clients throughout Alabama including, Huntsville, Montgomery, Birmingham, Mobile, Tuscaloosa, Hoover, Auburn, Dothan, Madison and Decatur.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
