Fraudsters take advantage of Oklahoma investors through misleading advertisements, false reports of investment performance, and schemes like commodities scams. Your broker may also engage in many other violations of FINRA Rules, like recommending unsuitable investments that lose money.
If you’ve been a victim of investment fraud, you need to consult with an Oklahoma securities fraud lawyer to evaluate your case and ensure you get the best possible settlement in arbitration.
Oklahoma Securities Regulations
Federal securities laws contain antifraud provisions which many states codify in their own blue sky laws. These laws empower state regulators to protect local investors from fraudulent securities offerings and unethical broker behavior.
The Oklahoma Department of Securities enforces the state’s securities laws, and also provides investor education so Oklahomans can identify potentially fraudulent investments.
Some brokers also hold insurance licenses, allowing them to sell you products like variable annuities or variable universal life insurance (VULs). The Oklahoma Insurance Department regulates the insurance industry through its Anti-Fraud Unit, prosecuting embezzlement and other forms of insurance fraud.
Oklahoma Uniform Securities Act
The Oklahoma Uniform Securities Act of 2004 is the primary law that protects Oklahoman investors from securities fraud, which it defines as:
- To employ a device, scheme, or artifice to defraud;
- To make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statement made, in the light of the circumstances under which it is made, not misleading; or
- To engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
Section 1-411 of the Act also allows the Department of Securities to revoke a broker’s registration in the state if they are found to have been convicted of a securities-related crime in the past ten years, suspended or barred by the SEC or FINRA, or failed to supervise another agent who violated the Act.
Brokers have an incentive not to disclose their regulatory history, especially to prospective clients—but you can see your broker’s history of investor disputes and regulatory actions on BrokerCheck.
What Types of Cases Does an Oklahoma Securities Fraud Lawyer Handle?
Broker misconduct can take many forms, and Oklahoma investment fraud attorneys have experience with common FINRA rule violations:
- Unsuitable investment recommendations: Brokers have an obligation to recommend investments that suit an investor’s risk tolerance, tax status, investing experience, and other details described in their investment profile.
- Excessive trading: Executing a large quantity of trades (also known as churning an account) generates trading fees and commissions for the broker, but cuts into client profits.
- Misrepresentations or omissions: Brokers may fail to disclose material facts, such as an investment’s fees or features, or misrepresent facts about an investment.
- Unauthorized trading: Brokers can only execute discretionary trades in pre-approved discretionary accounts; otherwise, they need authorization from their client for every trade.
Oklahoma Commodities Fraud
Commodity pools allow investors to pitch in to a fund that invests in commodities futures and options. The operators may claim to have insight into the future market activity of oil and natural gas or agricultural products like corn, soy, and beef.
However, managers of commodity pools may also misappropriate investors’ funds or make exaggerated claims about their funds’ performance to encourage investors to invest.
Besides commodities pool fraud, Oklahoma commodities fraud lawyers also take on other types of scams involving commodities:
- Commodities scams of various kinds often involve precious metals, like gold and silver, and prey on investors’ desire for long-term financial security.
- Forex trading (foreign exchange trading) involves betting on the future value of foreign currencies, and can be complex and high-risk. It’s vital to verify your broker’s registration in the National Futures Association database and choose a broker who trades on a CFTC-approved exchange platform to avoid getting scammed.
- Cryptocurrency is a common target for fraudulent schemes, such as pump-and-dumps or Ponzi schemes. The complexity of crypto and the fear of missing out can lead investors into losing everything.
You can learn more about commodities scams from the Commodity Futures Trading Commission.
Securities Law Enforcement in Oklahoma
Investigations by the Department of Securities also lead to enforcement actions by other regulators, such as the Oklahoma Attorney General’s prosecution of a couple who defrauded Oklahoma investors of nearly $500,000 by soliciting them to invest in shell company ICON Financial Group LLC.
The Oklahoma Department of Securities lists its most recent enforcement actions online.
Carbon Farms and Super Woman Productions
On March 18, 2025, the Oklahoma Department of Securities ordered Carbon Farms and Retreat, LLC, Super Woman Productions, LLC, and their CEO Kylynn Coleman Dempsey to cease and desist from offering and/or selling unregistered securities.
The Department of Securities alleged that membership interests in these two companies qualified as unregistered securities under the Oklahoma Uniform Securities Act and that Kylynn Coleman Dempsey had acted as an unregistered agent transacting securities business.
Notably, the Department of Securities further alleged that the respondents made untrue statements about these membership interests, including that investors would receive 300% or greater returns on their investment.
Consent Order with Edward Jones
On December 20, 2024, Edward Jones & Co., L.P. entered into a Consent Order with the Oklahoma Department of Securities.
The firm had allegedly offered a prorated offset of investment advisory fees for clients who paid front-end sales loads for Class A shares of mutual funds in the two years before switching from a brokerage account to a Guided Solutions investment advisory account.
However, the firm allegedly failed to fully offset these loads for some clients, causing investors to pay more in expenses.
The firm consented to pay an administrative fine of $320,754.72 to the Oklahoma Department of Securities Investor Education Revolving Fund.
How Can I Recover Investment Losses in Oklahoma?
When you open a brokerage account, you’ll likely sign an investment contract that requires you to resolve any future disputes through FINRA arbitration. The Financial Industry Regulatory Authority (FINRA) offers arbitration as a faster and lower-cost alternative to civil court.
However, that doesn’t mean you don’t need representation. Oklahoma investment fraud lawyers are knowledgeable about securities law and the arbitration process, and will be well-equipped to take on your case.
Who Are the Oklahoma Securities Fraud Lawyers at Kurta Law?
Kurta Law is a national law firm with headquarters in New York City. Our experienced securities attorneys regularly secure settlements for Oklahoma residents.
If you have questions before proceeding with your case, contact us for a free case evaluation at (877) 600-0098 or info@kurtalawfirm.com.