New York Securities Arbitration Resources

In New York, the attorney general plays a larger part in securities fraud investigations than in other states thanks to a law made nearly a century ago. Often considered the financial capital of the United States, New York is home to many banks and brokerages, which means the unique rules for the state apply to brokers doing business within the borders.

It is crucial for investors in New York to be aware of the ways in which the laws of the state differ because they likely impact the process through which securities fraud is investigated and convicted compared to other states.

If you are an investor in New York who has had investments brought to a trial for fraud by the attorney general, you will still want representation on your side to ensure the outcome you seek is carried out.

The securities fraud lawyers at Oakes & Fosher have provided representation for plaintiffs in investment fraud cases for a number of years and can provide you the knowledge and peace of mind you need when a broker or brokerage firm you hired has allegedly taken fraudulent action on your accounts. We are permitted to practice in this state, and across the nation, either directly through the Financial Industry Regulatory Authority (FINRA) or by association with local counsel.

What is Securities Fraud?

In New York, the attorney general must adhere to the Martin Act, a 1921 law which gives them discretion to fight financial fraud. The law is also stronger than most states’ laws regarding financial fraud in that the attorney general’s office, rather than investors, is the only institution that can bring securities law violation claims to court on the investors’ behalf.

Some of the powers the attorney general has in the investigation include:

  • Subpoena witnesses and require them to attend hearings
  • Examine them under oath before either a judge, a court of record, or the attorney general
  • Require them to produce evidence, such any books or papers, deemed relevant to the claim

The role an attorney can play for plaintiffs in New York financial fraud cases may include providing them representation, as well as working on their behalf to ensure an outcome that results in restitution.

Oakes & Fosher is a securities fraud firm that can help New York investors navigate problems associated with fraudulent investment practices made on their accounts. Our attorneys can provide guidance you need to understand the laws as they apply to New York State investors and recompense for damages associated with their investments.

New York Securities Fraud Penalties

Consequences for securities fraud judgments in New York can include either misdemeanors or felonies. A person committing unintentional securities fraud will receive criminal penalties, but these are considered misdemeanor offenses. In contrast, deliberately defrauding investors is seen as a Class-E felony.

Consequences for investment fraud include:

  • Misdemeanor securities fraud – Committing a misdemeanor offense of investment fraud in New York includes a prison sentence ranging from 15 days to one year.
  • Felony securities fraud – Stockbroker fraud in New York that is found to be a felony, rather than a misdemeanor, is considered a Class-E felony and carries a prison sentence with a minimum between one year and sixteen months and a maximum of four years.

In some instances, other federal charges may accompany an indictment of investment fraud. One of these possible charges might include mail or wire fraud if the scheme used communication–such as radio, TV, or mailing out information with the goal of defrauding victims. Other charges might fall under other federal securities laws such as the Securities Exchange Act of 1933, the Securities and Exchange Act of 1934, the 1939 Trust Indenture Act, and the 1940 Investment Advisors Act or Investment Company Act.

In addition to criminal penalties, a broker or brokerage firm may face civil penalties which include payment to compensate the defrauded victims.

New York Stockbroker Fraud Resources

New York’s Investor Protection Bureau – An agency under the attorney general of New York that serves to protect and enforce the Martin Act.

Investor Protection Bureau Complaint Form – The complaint form, provided by the New York attorney general’s offices, gives investors an opportunity to present problems and documentation to the attorney general in order for him or her to open an investigation into broker misconduct. The form includes fields to upload information for the attorney general’s review.

Broker-Dealer And Securities Registration Information Sheet – Details the steps prospective brokers must use to register in the state of New York, including any forms they might have to submit or certifications they must have in order to operate in the state.

Resources for Brokers, Dealers, and Salespersons – Numerous resources for brokers to use, and for investors to familiarize themselves with, in order to comply with securities laws in New York state regarding registering to sell securities as both an individual or a firm.

Financial Industry Regulatory Authority – Used to self regulate the financial industry, which includes securities, FINRA succeeded the National Association of Securities Dealers, Inc. (NASD) as a non-governmental, private entity that the U.S. Securities and Exchange Commission (SEC) oversees.

BrokerCheck by FINRA – A research tool for investors looking for resources the background and/or experience on a broker, BrokerCheck allows investors the opportunity to read information about brokers and firms to better understand their history and any disclosures brought against them.

U.S. Securities and Exchange Commission – With a goal of protecting investors and maintaining financial markets and the economy as a whole, the SEC oversees FINRA and the U.S. financial sector in all its forms.

Contact Our Attorneys

If you have conducted investment transactions in New York state and are concerned your broker or a brokerage firm did not work in your best interest, it is time to take action. Contact the experienced attorneys at Oakes & Fosher today to discuss your case.