What is a Securities Attorney?

A securities attorney helps investors determine whether their losses resulted from normal market conditions or from misconduct such as unsuitable investment recommendations, unauthorized trading, excessive commissions, misrepresentation, or failure to supervise. At Kurta Law, we exclusively represent investors—not brokerage firms—and we help clients nationwide pursue recovery through FINRA arbitration and other legal remedies.

Whether you’re unsure if you have a case or you’ve already suffered significant financial losses, our team can review your account, explain your options, and help you determine the best path forward.

What Does a Securities Attorney Do?

A securities attorney represents investors who believe they were harmed by the misconduct of a broker, financial advisor, investment adviser, or brokerage firm. Unlike corporate securities lawyers who help companies issue stock or comply with SEC regulations, investor-focused securities fraud attorneys investigate financial misconduct and pursue recovery for individual investors.

At Kurta Law, we help clients evaluate losses involving stocks, bonds, mutual funds, annuities, private placements, structured products, non-traded REITs, alternative investments, and many other investment products.

Our FINRA attorneys routinely investigate claims involving:

• Unsuitable investment recommendations
• Unauthorized trading
• Excessive trading (churning)
• Misrepresentation and omission
• Failure to supervise
• Overconcentrated portfolios
• Selling away
• Breach of fiduciary duty

Every case begins with a structured review of your account records, communications, investment recommendations, and supporting documents. Many investors are surprised to learn that what appeared to be “bad luck” may actually involve violations of securities regulations.

When Should You Hire a Securities Attorney?

Many investors wait too long before speaking with a securities fraud attorney because they assume investment losses are simply part of investing. While market losses certainly happen, losses caused by broker misconduct may be recoverable.

You should consider speaking with a securities attorney if:

• Your broker recommended investments that didn’t match your goals.
• You discovered trades you never authorized.
• Your account generated unusually high commissions.
• Your portfolio became heavily concentrated in one investment or sector.
• Your broker guaranteed returns or minimized risks.
• Important fees, surrender charges, or liquidity restrictions weren’t explained.
• Your financial advisor stopped communicating after significant losses.
• You learned your broker has disciplinary disclosures or customer complaints.

Even if you’re unsure whether misconduct occurred, a Kurta Law investment loss attorney can review your account and identify potential violations that aren’t immediately obvious.

The sooner a securities fraud attorney reviews your records, the easier it may be to preserve evidence and evaluate your available recovery options.

7 Ways a Securities Attorney Helps Investors

1. Determine Whether You Have a Viable Claim

Many investors don’t know whether they actually have a legal claim. Brokerage statements can be confusing, investment products are increasingly complex, and brokerage firms often insist that market conditions—not misconduct—caused the losses.

A FINRA attorney evaluates whether your broker complied with FINRA Rules, SEC regulations, and other legal obligations.

2. Investigate Broker and Firm Misconduct

Investment losses rarely tell the whole story, which is why you need an expert to do a deep dive into your records. 

Experienced securities fraud attorneys investigate:

• account statements
• trade confirmations
• emails
• text messages
• marketing materials
• account opening documents
• investor profiles
• risk tolerance questionnaires

They also review the brokerage firm’s supervisory responsibilities to determine whether the firm itself may share liability.

3. Identify Violations of Securities Laws and FINRA Rules

Experienced securities fraud attorneys understand how securities regulations apply to real-world investment recommendations.

For example, brokers generally must recommend investments consistent with a client’s investment profile under FINRA Rule 2111. Brokerage firms must also establish supervisory systems designed to detect misconduct under FINRA Rule 3110.

Your investment attorney compares your financial circumstances with your broker’s recommendations to determine whether those obligations were violated.

4. Investigate Complex Investment Products

Many investment fraud cases involve products that most investors have never heard of before purchasing them.

Examples include:

• Non-Traded REITs
• Business Development Companies (BDCs)
• Private Placements
• Structured Products
• Variable Annuities
• Private Credit Funds
• Hedge Funds
• Alternative Investments

Experienced securities attorneys often recognize these products because they’ve handled similar claims involving the same investments or brokerage firms.

Rather than starting from scratch, they understand the risks, disclosures, fees, and common issues associated with many complex investment products.

5. Gather Evidence That Supports Your Claim

Brokerage firms rarely admit wrongdoing voluntarily. Your FINRA attorney develops evidence showing how the broker’s conduct contributed to your losses by organizing documents into a timeline that clearly demonstrates what happened.

This often includes identifying inconsistencies between what your broker promised and what the investment actually delivered.

6. Represent You During FINRA Arbitration

Most investor disputes are resolved through FINRA arbitration rather than traditional court litigation. An experienced securities attorney prepares the Statement of Claim, manages discovery, works with expert witnesses when appropriate, presents evidence during hearings, and advocates for your interests throughout the arbitration process.

Because FINRA arbitration differs significantly from civil litigation, experience in this forum matters.

7. Negotiate Settlements

Many investment fraud claims settle before the arbitration hearing concludes. When settlement opportunities arise, your FINRA attorney evaluates whether the proposed amount fairly compensates you for your losses and negotiates on your behalf.

The goal isn’t simply reaching a settlement—it’s pursuing the best possible outcome based on the facts of your case.

How Do You Know If You Have a Securities Fraud Claim?

One of the biggest misconceptions investors have is believing that every investment loss is simply the result of market volatility. In reality, many successful investment fraud claims begin with losses that initially seemed like ordinary market declines.

You may have a claim if your losses resulted from:

• unsuitable investment recommendations
• misleading sales presentations
• unauthorized trading
• excessive commissions
• excessive concentration in one investment
• omitted risk disclosures
• conflicts of interest
• failure to supervise

It’s important to contact a securities fraud attorney immediately, because there are time limits for filing claims. Many investors don’t discover these issues until months—or even years—after purchasing an investment.

Brokerage firms frequently deny wrongdoing when investors first raise concerns. That doesn’t necessarily mean your claim lacks merit. An experienced investment loss attorney can independently evaluate your account records and determine whether misconduct contributed to your losses.

Common Types of Securities Fraud Cases

Every investment fraud case is unique, but experienced securities attorneys tend to see many of the same patterns of misconduct. Understanding these common violations can help you recognize when investment losses may be more than simply the result of market performance.

Unsuitable Investment Recommendations

One of the most common reasons investors seek help from an investment loss attorney is that they were sold investments that never matched their financial goals in the first place.

Before recommending an investment, brokers must understand their client’s age, financial situation, investment objectives, liquidity needs, tax status, and risk tolerance. Recommendations that ignore these factors may violate FINRA Rule 2111.

Learn more about unsuitable investment recommendations and how they may affect your right to recover losses.

Unauthorized Trading

Investors should never discover trades they didn’t approve. Unauthorized trading occurs when a broker buys or sells securities without the client’s permission or exceeds the authority granted under the account agreement. Even if the broker believes the trade will benefit the client, unauthorized trading can violate FINRA Rules and expose both the broker and brokerage firm to liability.

If you notice unfamiliar transactions on your account statements, review our guide to unauthorized trading.

Churning

Some brokers generate commissions by buying and selling investments far more frequently than necessary. Known as account churning, this practice benefits the broker while exposing investors to unnecessary transaction costs and increased risk. Excessive trading may be difficult to recognize because individual trades can appear legitimate when viewed in isolation.

A  Kurta Law investment loss attorney can evaluate whether your trading activity served your financial objectives or primarily generated commissions.

Misrepresentation and Omission

Investors rely on brokers to explain investment risks honestly. Problems arise when brokers exaggerate potential returns, minimize risks, omit important information, or describe speculative investments as safe alternatives.

Many successful claims involve misrepresentation and omission rather than outright fraud.

Failure to Supervise

Brokerage firms are responsible for supervising the activities of their registered representatives. Under FINRA Rule 3110, firms must establish supervisory systems designed to detect misconduct before investors suffer significant losses.

When firms fail to monitor recommendations, review communications, or investigate red flags, they may share responsibility for investor losses. Learn more about failure to supervise claims.

Overconcentration

Diversification is one of the fundamental principles of investing. Unfortunately, some brokers place too much of a client’s portfolio into a single stock, sector, or investment product. If that investment declines significantly, investors may suffer losses that could have been avoided through proper diversification.

Visit our page on overconcentration to learn more.

Selling Away

Some brokers recommend investments that were never approved by their brokerage firms. Known as selling away, these outside investments often avoid the firm’s supervisory process, increasing the risk of fraud.

Investors are frequently unaware that the investment was never reviewed or approved by the brokerage firm.

What Documents Will a Securities Attorney Review?

Many investors worry they don’t have enough information to determine whether they have a claim. Fortunately, securities attorneys know what records to request and how to identify evidence of misconduct.

During a structured case evaluation, your FINRA attorney may review:

• Monthly account statements
• Trade confirmations
• New account forms
• Investment policy statements
• Risk tolerance questionnaires
• Emails and text messages
• Notes from meetings or phone calls
• Investment prospectuses
• Marketing materials
• Disclosure documents
• Fee schedules
• Internal brokerage firm correspondence obtained during discovery

These records help establish what recommendations were made, what disclosures were provided, and whether the broker’s actions aligned with your investment objectives.

Even if you’re missing some documentation, don’t assume you can’t pursue a claim. Brokerage firms are often required to maintain many of these records, and an experienced securities attorney can help obtain them during the investigation.

Brokerage Firms May Also Be Liable

Many investors assume only their individual broker is responsible for misconduct. In reality, brokerage firms often play a significant role in the events that lead to investment losses.

Brokerage firms are responsible for supervising their representatives, approving investment products, establishing compliance procedures, and monitoring recommendations for potential violations.

Depending on the circumstances, a securities attorney may investigate whether the firm:

• Failed to supervise its broker
• Approved unsuitable investment products
• Ignored warning signs of misconduct
• Failed to conduct adequate due diligence
• Allowed excessive trading
• Failed to investigate customer complaints
• Permitted undisclosed conflicts of interest

Because firms generally have greater financial resources than individual brokers, identifying firm liability can significantly strengthen an investor’s claim.

Why Experience Matters in Securities Cases

Securities law is highly specialized.

Unlike general litigation attorneys, experienced securities attorneys regularly work with FINRA Rules, SEC regulations, brokerage firm procedures, and complex investment products. They understand how brokerage firms defend claims and know what evidence is most persuasive during FINRA arbitration.

At Kurta Law, Jonathan Kurta previously represented brokerage firms before dedicating his practice exclusively to helping investors recover losses. That experience provides valuable insight into how firms investigate complaints, evaluate claims, and develop their defenses.

Our firm also represents investors—and only investors. We never represent brokerage firms or financial institutions, eliminating potential conflicts of interest and allowing us to focus entirely on protecting our clients’ interests.

Jonathan Kurta is also a member of the Public Investors Advocate Bar Association (PIABA), an organization dedicated to improving investor protection and promoting fairness within the securities industry.

If you believe your broker’s recommendations or conduct contributed to your investment losses, speaking with an experienced securities attorney can help you understand your options before important filing deadlines expire.

How Much Does a Securities Attorney Cost?

Many investors hesitate to contact a securities attorney because they assume legal representation will be expensive. Fortunately, that’s rarely the case.

At Kurta Law, we offer free, confidential case evaluations so investors can understand their legal options before making any decisions. If we believe you have a viable claim, we typically represent clients on a contingency-fee basis. That means you do not pay attorneys’ fees unless we successfully recover money on your behalf.

This fee structure allows investors to pursue claims against large brokerage firms without worrying about paying significant legal fees upfront. It also aligns our interests with yours—we succeed only when you do.

During your consultation, we’ll explain how contingency fees work, discuss the strengths of your potential claim, and answer any questions you have about the process.

Why Investors Choose Kurta Law

Choosing the right securities attorney can make a meaningful difference when pursuing an investment fraud claim. Brokerage firms have experienced legal teams, substantial financial resources, and years of experience defending customer complaints. Investors deserve experienced advocates who understand how these firms operate.

Kurta Law focuses exclusively on representing investors. We do not represent brokerage firms, financial advisors, or financial institutions, allowing us to advocate solely for individuals who have suffered investment losses.

Our attorneys help clients throughout the country recover losses involving:

• Stocks
• Bonds
• Mutual funds
• Exchange-traded funds (ETFs)
• Variable annuities
• Non-traded REITs
• Private placements
• Structured products
• Alternative investments
• Business Development Companies (BDCs)
• Hedge funds
• Private credit investments

Jonathan Kurta previously represented brokerage firms before dedicating his practice to helping investors. That experience provides valuable insight into how firms investigate complaints, evaluate liability, and defend claims during FINRA arbitration.

Our firm has represented investors across the United States as well as internationally, helping clients pursue recovery after broker misconduct, unsuitable investment recommendations, unauthorized trading, excessive commissions, and many other forms of securities fraud.

You can also review some of our significant settlements and arbitration awards to learn more about our experience representing investors.

Whether you’re concerned about a recent investment recommendation or losses that occurred years ago, our team can help you understand your options and determine whether your losses may be recoverable.

Frequently Asked Questions

What does a securities attorney do?

A securities attorney represents investors who have suffered financial losses due to broker misconduct, unsuitable investment recommendations, securities fraud, negligence, or violations of FINRA Rules and securities laws. They investigate the facts, gather evidence, evaluate potential claims, negotiate settlements, and represent investors during FINRA arbitration when necessary.

When should I hire a securities attorney?

You should consider speaking with a securities attorney as soon as you suspect your broker or financial advisor acted improperly. Warning signs include unauthorized trades, unsuitable investments, unexplained fees, excessive trading, misleading statements, concentrated portfolios, or recommendations that didn’t align with your financial goals.

Do I need a securities attorney for FINRA arbitration?

While investors are permitted to represent themselves, brokerage firms almost always retain experienced defense attorneys. An investment loss attorney who regularly handles FINRA arbitration understands the applicable rules, arbitration procedures, discovery requirements, and strategies commonly used by brokerage firms.

How long do I have to file a claim?

Many investor claims are subject to the filing deadlines established under FINRA Rule 12206. Because filing deadlines vary depending on the facts of your case, it’s important to speak with a securities attorney as soon as possible if you suspect misconduct.

Can investment losses be recovered?

Not every investment loss is recoverable. Markets naturally rise and fall, and losses alone do not establish misconduct. However, when losses result from unsuitable recommendations, unauthorized trading, fraud, misrepresentation, excessive commissions, failure to supervise, or other regulatory violations, investors may have grounds to pursue recovery.

What should I bring to my consultation?

Helpful documents include account statements, trade confirmations, emails, text messages, investment prospectuses, marketing materials, account-opening paperwork, and any notes from conversations with your broker. If you don’t have every document available, don’t worry. Our team can often help identify additional records needed to evaluate your claim.

What Other Resources Can Help Me Learn About Investment Fraud?

Investors who want to learn more about their rights or research a broker’s background can use several free resources provided by regulators. These resources can help you review your broker’s history, understand FINRA rules, and learn how securities regulations protect investors.

• FINRA BrokerCheck – Search a broker’s employment history, licenses, customer complaints, regulatory actions, and disclosures.
• SEC Investor.gov – Educational resources on investing, avoiding fraud, and protecting yourself from investment scams.
• FINRA Rule 2111 – Read the official suitability rule that requires brokers to recommend investments consistent with a client’s financial situation and objectives.
• FINRA Rule 3110 – Learn about brokerage firms’ supervisory responsibilities and how firms are expected to monitor their registered representatives.
• FINRA Investor Complaint Center – Information about submitting complaints regarding brokers or brokerage firms and available investor resources.

While these resources provide valuable educational information, they cannot evaluate the specific facts of your situation or advise you on whether your investment losses may be recoverable. If you believe your broker or financial advisor violated securities laws or FINRA Rules, speaking with an experienced FINRA attorney can help you understand your legal options.

Speak With a Securities Attorney Today

If you believe your broker, financial advisor, or brokerage firm violated your trust, you don’t have to determine your legal options alone.

Investment losses are not always the unavoidable result of market conditions. In many cases, they stem from unsuitable recommendations, inadequate disclosures, unauthorized trading, excessive commissions, supervisory failures, or other forms of misconduct that may entitle investors to financial recovery.

At Kurta Law, we carefully review your account records, explain your options in plain language, and help you determine whether you have a viable claim. If we move forward together, your investment loss attorney will build a comprehensive case supported by documentation, industry regulations, and years of experience representing investors in FINRA arbitration.

We know how overwhelming investment losses can feel, especially when retirement savings, family wealth, or years of careful planning are at stake. Our goal is to help you understand what happened, hold the responsible parties accountable, and pursue the recovery you deserve.

Contact Kurta Law FINRA attorney today for a free, confidential structured case evaluation. We’ll review your situation, answer your questions, and help you take the next step toward protecting your financial future.