Multi-Million Dollar Advocates Forum
Martindale-Hubbell Client Champion Platinum 2023
American Association for Justice

Securities & Investment Fraud

Securities fraud and investment fraud come in many forms. Securities fraud ranges from deceptive practices, misrepresentations, omissions, intentional misconduct, professional negligence, failure to act in the customer’s best interest, and breach of fiduciary duty. Many investors may not even know or realize they are victims of investment fraud or that they have a legal right to recover their damages. Claims often revolve around faulty products and failures of brokerage and investment firms to conduct the rigorous due diligence required by law. While some cases do involve intentional misconduct by a broker or financial advisor, we understand that there are many cases where brokers and financial advisors themselves have been misled or abused by their own employers.

When a client trusts a financial professional such as a broker or investment advisor, there are always risks that the financial professional or firm take advantage of the clients trust, whether intentionally or through negligent conduct. We are dedicated to fighting aggressively for victims who have been harmed by stockbroker fraud, investment losses, and other damages.

Bixby Law PLLC handles all types of securities claims on behalf of investors. Some examples of the types of claims include:

Unsuitable Investments

Brokers and investment advisors are required to only recommend investments and investment strategies that are suitable for their customer’s risk profile, investment objectives, and needs. Recommendations are also required to be in the customer’s best interest. When an investor is sold an unsuitable investment, the unsuitable recommendation itself may be considered fraud or wrongdoing and the investor may be legally entitled to recover damages.

Various regulations and laws establish suitability obligations. For instance, FINRA Rule 2111 provides that firms and associated persons must meet three main suitability obligations to their customers:

  • Reasonable-basis suitability requires a broker to have a reasonable basis to believe, based on reasonable diligence, that the recommendation is suitable for at least some investors. Reasonable diligence must provide the firm or associated person with an understanding of the potential risks and rewards of the recommended security or strategy.
  • Customer-specific suitability requires that a broker, based on a particular customer’s investment profile, has a reasonable basis to believe that the recommendation is suitable for that customer. The broker must attempt to obtain and analyze a broad array of customer-specific factors to support this determination.
  • Quantitative suitability requires a broker with to have a reasonable basis for believing that a series of recommended transactions, even if suitable when viewed in isolation, is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile.

FINRA’s suitability rules not only require that individual recommendations of securities be suitable, but that any recommended “investment strategy involving a security” be “suitable for the customer.” FINRA Rule 2111. The requirement that investment strategies be suitable is meant to be “broad”, and even covers recommendations of an investment strategy which contains non-security investments, in addition to securities. See FINRA Rule 2111 (Suitability) FAQ.

Not only must initial recommendations of securities or investment strategies be suitable, but any recommendations to hold an investment must be suitable as well. FINRA Rule 2111.03 (“Recommended Strategies. The phrase ‘investment strategy involving a security or securities’ used in this Rule is to be interpreted broadly and would include, among other things, an explicit recommendation to hold a security or securities.”)

Other examples of Securities Fraud and Investment Fraud Claims include:

  • Overconcentration
  • Risky Options Trading Strategies
  • Illiquid Investments
  • Non-Traded REITs
  • Private Placements
  • Limited Partnerships
  • Breach of Fiduciary Duty
  • Misrepresentations
  • Omissions
  • Churning / Excessive Trading
  • Excessive Commissions / Fees
  • Ponzi Schemes
  • Elder Abuse
  • Failure to Supervise
  • Improper Due Diligence
  • Margin & Portfolio / Securities Backed Loans
  • Complex Insurance Products (including Universal Life and Indexed Universal Life)
  • Scams, Theft, and Third Party Fraud

Client Reviews

Michael Bixby is an attorney of honor and integrity. He is a true professional in the courtroom. His commanding performance is only surpassed by his knowledge of legal procedure. Michael's counsel was invaluable from...


Michael Bixby is a true gem. A lawyer with immense integrity and devotion to his clients. I could not be more grateful for the legal work he did for me.


Michael Bixby was a great help in solving my attempt to recover some of my lost retirement funds. He and his Firm did a wonderful job for me and in the end made every effort to get my recovered monies available to me...


My wife and I contacted Michael Bixby about a matter where we felt we had been wronged by a former financial advisor resulting in significant investment losses. We had sought advice from other sources and were told that...


I would like to thank attorney Michael Bixby for taking my case. With his team he recovered money that I considered lost to me. I pray I never have this problem again but would recommend him and his team to all.


Michael Bixby did every thing he said he will do. He would keep you informed on everything . And on a timely basis. And he did not draw it out over a long time. I was very please with him and I would used him again.


Thank you very much for the quality of service and dedication given to my case when you represented me. Michael Bixby and team are very responsible, organized, and efficient with great knowledge on the subject of...


My siblings and I were very happy with Michael Bixby's legal leadership in resolving our FINRA case. He did a great job explaining our case's strengths and challenges to us, and offered his guidance and expertise in ways...


I engaged Michael Bixby to pursue an investment fraud claim. He and his staff were most courteous and helpful. They were successful in getting a timely settlement. I would not hesitate to consult them again if the need...


My claim was handled in a very professional manner. The process was explained in advance, and I was kept in the loop. My questions were answered in a timely manner. I appreciate what was done on my behalf.


Get in Touch

Fill out the contact form or call us at (833) 547-4994 to schedule your free and confidential consultation.
  • Free and Confidential Consultation Free and Confidential Consultation
  • Available 24/7 Available 24/7
  • Lorem Ipsum Dolor Sit No Upfront Fees*

Leave Us a Message