Investors are often the victim of fraud carried out by financial professionals they trust—like a Rhode Island man who allegedly claimed to be a financial advisor and defrauded a couple out of $140,000.
While investment losses can leave you reeling, it’s crucial to contact a securities attorney right away. A Rhode Island investment fraud lawyer can evaluate your case and help you seek recovery through FINRA arbitration and other paths.
Rhode Island Investment Fraud Lawyer
If you’ve lost money through investment fraud, a Rhode Island securities fraud attorney can take on the brokerage firm on your behalf. Their knowledge of securities regulations and the formal processes of civil litigation and other avenues to recovery are crucial to building a strong case that proves your losses are the result of misconduct.
Understanding Rhode Island Securities Laws
The Rhode Island Uniform Securities Act establishes the state’s standards for the securities industry and empowers investors by providing several ways to hold professionals accountable for fraud and exploitation.
The Role of the Rhode Island Uniform Securities Act
The Rhode Island Uniform Securities Act describes licensing requirements for brokers and investment adviser representatives, prohibited practices in the securities business, and guidelines for the penalizing violations.
Chapter 50 of the Rhode Island Code of Regulations supplements the Uniform Securities Act, expanding on the licensing and registration requirements and exemptions for brokers, investment adviser representatives, and securities offerings.
Rhode Island Securities Division Enforcement Actions
The securities industry in Rhode Island is regulated by the Department of Business Regulation, Securities Division. The Securities Division lists its recent enforcement actions online, including actions taken against firms and individual brokers.
For example, on December 20, 2024, the Securities Division entered into a consent order with Edward D. Jones & Co., L.P., alleging that the firm did not have procedures reasonably designed to detect that certain qualifying investors’ Class A mutual fund front-end loads were not fully offset by prorated advisory fees.
Edward D. Jones & Co. consented to pay a fine of $320,754.72 to the General Fund of the State of Rhode Island.
Blue Sky Laws in Rhode Island
As a blue sky law, the Rhode Island Uniform Securities Act protects investors by enabling regulators to penalize brokers who make untrue statements or omit material facts about investments. If an issuer or sales agent manipulates the facts or hides the risks associated with an investment, you can pursue legal action under Rhode Island law.
Broker-Dealer and Investment Adviser Regulations in Rhode Island
Brokers and investment adviser representatives (IARs) must be licensed by the State of Rhode Island, or qualify for an exemption from licensure, before they can practice in the state.
The state has the authority to revoke or suspend their licenses if they engage in dishonest or unethical conduct, and can bar them from conducting business in Rhode Island. These regulatory actions and any past investor disputes become part of your broker’s BrokerCheck record, which is publicly accessible for investors.
Securities Registration and Exemptions in Rhode Island
When your broker recommends an investment, they have an obligation to inform you about that product’s features, fees, and potential risks and returns. This generally includes providing you with an investment’s prospectus or other documentation provided by the issuer.
Private placements aren’t required to register with state or federal regulators, and by extension aren’t required to follow the same rules as public investments. However, even private placements come with documentation concerning their risks and other financial information.
Common Types of Securities Fraud in Rhode Island
Not all forms of securities fraud involve complicated schemes—fraudulent conduct can be as simple as omitting material facts about an investment so it better appeals to investors. Rhode Island securities attorneys track down evidence of misconduct by investigating account statements, communications between you and your broker, and other records that can hide deceptive practices.
Misrepresentation in RI
Brokers have an obligation to accurately represent an investment’s features, including its risks, limitations, and potential returns. Misrepresenting or omitting material facts about an investment is a common type of misconduct for brokers, issuers, and other financial professionals.
Churning in RI
Some brokers may engage in trading that quickly generates commissions and excessive trading fees that cut into your profits. Identifying excessing trading can require a detailed examination of trading records to evaluate the suitability and timing of each transaction and your broker’s overall strategy.
Insider Trading in RI
Anyone can make investment decisions based on public information, but when traders take advantage of tips from insiders about mergers, upcoming Initial Public Offerings (IPOs), and other events affecting the market, that’s insider trading. This gives insiders an unfair advantage over other investors.
Margin Disputes in RI
Margin trading allows you to borrow money from your firm in order to purchase securities. While this can potentially amplify your returns, it also increases your losses if your broker exercises unauthorized use of margin.
If your investments fail to perform, the brokerage firm may make a margin call, requiring you to either add funds or securities to your account to reach the maintenance margin or liquidate the investments in your account.
Elder Financial Exploitation in RI
Older adults are more vulnerable to financial exploitation by brokers and other people with access to and authority over their accounts. Many scammers use manipulative tactics to gain elderly investors’ trust, tricking them into investing in fraudulent schemes or handing over their account information.
Legal Remedies for Securities Fraud Victims in Rhode Island
When you suffer investment losses, a securities fraud lawyer can help you determine which legal remedy is best for your case. Each option has its own requirements and advantages, but your case will benefit from thorough documentation and evidence no matter which method you choose.
Filing a Complaint
If you believe your losses are the result of fraud or misconduct, several Rhode Island authorities are at the ready to investigate your case:
1 Consumer Protection Division of the Rhode Island Attorney General’s Office
- Online Filing: File a complaint online through the Attorney General’s complaint form
- Documentation Required: Upload images, documents, spreadsheets, and other files relevant to your complaint or mail them to the RI Office of the Attorney General, Consumer Protection Division, 150 South Main Street, Providence, RI 02903
- Contact Information:
- Phone: 401-274-4400
- Email: consumers@riag.ri.gov
2 Rhode Island Department of Business Regulation, Securities Division
- Online Filing: File a complaint and upload documents through the Securities Division’s Online Inquiry System
- Documentation Required: Mail all relevant evidence of misconduct to the Rhode Island Department of Business Regulation, Securities Division, 1511 Pontiac Avenue, Cranston, RI 02920
- Contact Information:
- Phone: 401-462-9527 (8:30 a.m. – 4:00 p.m. ET, weekdays)
- Fax: 401-462-9645
- Email: DBR.SecInquiry@dbr.ri.gov
3 Financial Industry Regulatory Authority (FINRA)
- Online Filing: Access through FINRA’s complaint portal
- Documentation Required: Copies of all broker communications and relevant account statements
- Contact Information:
- Senior helpline: 844-574-3577 (9 a.m. – 5 p.m. ET, weekdays)
- Main line: 301-590-6500
- Support center: Available through FINRA’s contact page
You can file complaints with all three of these regulators at the same time, which will establish an official record of your allegations. Remember to keep copies of your documentation and follow up on the status of your complaints to put yourself in a strong position to pursue recovery.
Arbitration
The Financial Industry Regulatory Authority (FINRA) provides investors with a legal remedy in the form of arbitration. FINRA arbitration is designed to be a quicker alternative to civil court, usually providing resolution in 12-18 months.
In arbitration, you can present your case to a panel overseen by a neutral arbitrator. While arbitration is simpler than civil litigation, it still provides a binding decision that all parties must follow.
Mediation
You have the most direct control in mediation, a relatively less formal path to resolution that places you in negotiation with the other party. A neutral facilitator oversees your mediation, and the final agreement you reach will be legally binding for both parties. The mediation process typically takes several months, rather than years.
Civil Litigation
As the most formal avenue for recovery at your disposal, civil litigation is best navigated with a Rhode Island securities fraud attorney. Rhode Island court rules and procedures must be followed closely, and recovery may take years to reach.
Civil litigation also allows you to present your case to a judge and jury, making use of expert witnesses and extensive examination of the evidence to prove your need for recovery. If successful, a civil suit can yield restitution and other damages.
How a Rhode Island Investment Fraud Lawyer Can Help
A Rhode Island securities fraud lawyer will not only have experience investigating investment fraud, but also using their knowledge of securities law to pursue maximum recovery.
Case Evaluation and Evidence Collection
The first step in any path to recovery is collecting and examining the evidence of misconduct. Investment fraud attorneys will pore over financial records, communications, promotional materials, and other documents that may reveal signs of misconduct.
Representation During Arbitration or Litigation
Your attorney will navigate the hearings and other proceedings on your behalf, using your thorough evidence to make a strong argument for your need for recovery.
Negotiating Settlements
In some cases, you may be offered a settlement to resolve your dispute quickly. An experienced Rhode Island investment fraud attorney can evaluate the fairness of your offer and use your evidence to negotiate for damages that better address your losses.
Why Choose Kurta Law as Your Rhode Island Investment Fraud Attorney?
Investment fraud requires a knowledge of Rhode Island’s securities laws as well as the complexities of different investment products. At Kurta Law, we specialize in representing victims of securities fraud and broker misconduct involving a wide range of investments.
Proven Results and Client Success Stories
We know that investment losses can put your financial future in jeopardy. Our attorneys use robust investigative tactics to build a foundation for your personalized legal strategy, and our successes speak for themselves.
Experts on Complex Financial Products
From seemingly-simple mutual funds to complex alternative investments and structured products, our attorneys take on investment fraud across a wide range of financial products. We examine promotional materials and your transactions to uncover hidden fees, misleading language, and other evidence of misconduct.
Free Consultation and Contingency Fee Structure
Investment fraud can be devastating, and the path to recovery may seem daunting. At Kurta Law, your initial consultation is always free, and you’ll only pay legal fees if we succeed in recovering money for you.
Get Expert Guidance from a Rhode Island Securities Fraud Attorney
If you’ve been misled by a broker or lost money to a fraudulent scheme, you don’t have to face the aftermath alone. Our team is here to help you fight for your rights and restore your financial stability. To learn more about the benefits of hiring a Rhode Island securities fraud lawyer, we welcome you to reach out.
We are committed to guiding Rhode Island investors who have been wronged by brokers or fraudulent businesses. Call us at (877) 600-0098 for a free case evaluation, or fill out our online form today.