North Carolina Securities Fraud Lawyer

A North Carolina securities fraud lawyer helps investors pursue recovery when brokers, financial advisors, or investment firms engage in misconduct that leads to financial losses. Investment fraud can happen to anyone, and the consequences are often severe. When deceptive practices erase retirement savings and your financial safety net disappears, it can take years to rebuild financial stability.

State regulators investigate fraud and hold bad actors accountable. Investors also have options to pursue their own claims with the help of an attorney. Many disputes involving brokers and brokerage firms are resolved through the Financial Industry Regulatory Authority (FINRA). The agency offers arbitration that allows investors to seek compensation for losses caused by misconduct.

North Carolina Securities Regulation

The North Carolina Secretary of State enforces securities regulations through the state’s Securities Division. It also provides resources like investor education booklets to educate the public about different investments and the red flags of fraud.

North Carolina State Securities Laws

The North Carolina Securities Act describes prohibited conduct in the securities industry, such as the use of fraudulent schemes, making untrue statements or omissions, or manipulating the market for a security.

Blue sky laws like the North Carolina Securities Act empower state regulators to take on cases of broker fraud and misconduct. The term comes from the idea that fraudulent schemes promise nothing more valuable than “blue sky” to investors.

Portions of the North Carolina Administrative Code also apply to brokers and investment advisers. These define the requirements for registration and prohibit dishonest or unethical practices, from charging unreasonable fees to deceptive advertising.

What Types of Cases Does a North Carolina Securities Fraud Attorney Handle?

Broker misconduct lawyers in North Carolina take on cases involving many kinds of FINRA violations. Some common examples include:

• Unsuitable investment recommendations: When a broker recommends an investment, it needs to be suitable for the investor’s financial situation, as described in the investor’s profile. This includes an investor’s risk tolerance, tax status, and investing goals.

• Excessive trading: Churning leads to high trading fees and generates commissions for the broker, but can severely reduce the investor’s returns.

• Unauthorized trading: Brokers can only exercise their trading discretion in a client’s account if the firm has accepted the account as discretionary and the client has given their approval.

• Misrepresentations or omissions of fact: Material facts about investments include their fees, limitations, and potential risks and returns.
• Elder financial abuse: Seniors and other vulnerable adults are more likely to be financially exploited by their broker.

Cryptocurrencies, Mutual and Hedge Funds

Investment fraud can involve any product and, at times, can be hard to identify. It’s vital for investors to do their own research when investing to avoid getting scammed. Some types of investments have greater risks than others.

A North Carolina securities fraud lawyer will evaluate if you’ve been given all the required facts about these products:

• Some mutual funds earn high commissions for brokers, making them a target for fraud. Managers and brokers can misrepresent the fund’s strategy and expected returns to take advantage of investors.
• Unlike mutual funds, hedge funds have less oversight and disclosure requirements because they are private investments. Hedge funds can be vehicles for embezzlement and insider trading.
• Cryptocurrencies are often the subject of pump and dump scams, where scammers manipulate investors to inflate the price of a cryptocurrency, then sell everything they hold, causing the price to collapse and leaving investors with worthless currency.

Securities Law Enforcement in North Carolina

North Carolina securities regulators work with other state and federal investigators to catch securities fraud. For example, the U.S. Attorney for the Eastern District of North Carolina recently seized $5 million in cryptocurrency, allegedly connected to laundering stolen funds from romance scams.

The North Carolina Securities Division enforces securities regulations through civil proceedings and through regulatory actions like consent orders. You can learn about the Securities Division’s enforcement here.

Recent Enforcements

On May 8, 2024, the North Carolina Securities Division won $125,000 in restitution for North Carolina investors in a civil suit against Darryl York. The state alleged that Darryl York defrauded investors by claiming that he would invest their funds in commodities or use them as collateral for investments. Instead, he used their money for his own benefit or to repay other investors.

On February 23, 2024, Marlin Hershey and Dana Bradley were sentenced in a civil suit alleging that they engaged in a fraudulent investment scheme. The Securities Division assisted in the investigation, which allegedly found that they conspired to defraud investors through unregistered securities offerings. The Securities Division secured more than $333,000 in restitution for investors. The decision also secured combined forfeiture and fines totaling more than $600,000.

On February 7, 2024, the Securities Division entered into a Final Order with TradeStation Crypto following a multi-state investof $29,411.76 and reimburserder alleged that the firm’s Interest Feature, which allowed investors to earn interest on their crypto by letting TradeStation reinvest their assets, constituted a security under North Carolina law and that TradeStation failed to register it appropriately. TradeStation Crypto paid a civil penalty of $29,411.76 and reimbursed investigation costs of $29,411.76.

How Can I Recover Investment Losses in North Carolina?

When you open an account with a brokerage firm, you’ll agree to resolve any disputes through arbitration. The FINRA arbitration process is designed to be a more efficient alternative to civil court. However, arbitration is still complicated, and it’s best to contact a North Carolina securities fraud lawyer to represent you.

Securities law is a highly specialized field. You want an experienced attorney who can present your case effectively and secure the best possible settlement.

Who Are the NC Securities Fraud Lawyers at Kurta Law?

An investment fraud securities lawyer helps investors recover losses through FINRA arbitration and securities litigation when brokers, advisors, or firms commit misconduct. Kurta Law represents North Carolina investors nationwide, and we operate on a contingency fee basis. This means you don’t pay attorney’s fees unless we recover money for you. Look for attorneys with securities litigation & FINRA arbitration experience, a contingency fee option, and a clear plan for evaluating your investments.

Our investment attorneys are ready to represent you in all major North Carolina cities, including:

• Charlotte,
• Raleigh,
• Greensboro,
• Durham
• and Winston-Salem.

If you have questions, contact us for a free case evaluation at (877) 600-0098 or info@kurtalawfirm.com.