Illinois FINRA & Securities Attorneys

Navigating the complex world of financial investments requires vigilant oversight and a keen understanding of one’s rights and protections under the law. In Illinois, the Financial Industry Regulatory Authority (FINRA) and a robust legal framework serve as guardians for investors. For those seeking to protect their financial interests, turning to a seasoned Illinois FINRA & Securities attorney is a crucial step.

When investors first come to us for our services, they find that they are struggling with understanding the extent of their financial losses and identifying the underlying causes. Our preliminary approach involves a comprehensive forensic analysis of your investment portfolios to help figure out the nature of the losses and whether they stem from broker misconduct. At Stoltmann Law, we specialize in cases related to churning, broker theft, unsuitable investment recommendations by brokers and broker-dealers, failures in broker-dealer supervision, violations of FINRA regulations, and instances of selling away from authorized investment channels.

There are times when investment advisers and broker-dealers might prioritize their commissions over the investors’ risk tolerance by pushing unsuitable investment products. We also handle cases where clients have suffered from churning, unauthorized trades, or have been advised to invest in unsuitable securities. Claims of securities fraud and breaches of FINRA regulations are also among some of the common grievances we address.

Luckily, Illinois investors are safeguarded by a robust framework of industry rules, statutes, and laws specifically designed to prevent this kind of misconduct:

Illinois Securities Department: As the primary regulatory authority under the Illinois Securities Law of 1953, this department is the most important entity in overseeing all securities transactions within the state. It is tasked with registering and monitoring broker-dealers and investment advisers, ensuring their compliance with state laws. The department not only educates investors about their rights and risks but also rigorously audits financial entities and prosecutes fraudulent activities to safeguard public interests.
Consumer Protection Division: Operating under the Illinois Attorney General’s office, the Consumer Protection Division is focused on shielding Illinois residents from deceptive and unfair practices in the marketplace, including the investment sector. This division actively pursues legal action against entities that engage in financial fraud, providing a critical layer of security for individual investors who might be vulnerable to scams.
FINRA and SEC: The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) play important roles at the national level. FINRA helps investors conduct due diligence on brokers through its comprehensive database, facilitating transparency in broker activities and history. Meanwhile, the SEC upholds and enforces federal securities laws, aiming to maintain fair, orderly, and efficient markets and protect investors from corporate abuses.
Illinois Securities Law of 1953: This foundational legal framework sets forth the regulations for securities transactions in Illinois. It prohibits fraudulent activities by brokers and broker-dealers, ensuring they do not engage in practices that could deceive or harm investors. Enforcement of this law involves detailed scrutiny of securities offerings and strict penalties for violations, thereby enhancing the integrity of the financial markets in Illinois.

Despite these protections, the effectiveness of regulatory bodies in actual financial recovery for victims is often limited. Through our experience, we’ve found that most of the fines imposed are not successfully collected or returned to the victims. As a result, most of the investors who suffer from securities fraud in Illinois find it necessary to engage a securities attorney to pursue FINRA arbitration.

The Role of Illinois FINRA & Securities Attorneys

The financial marketplace is filled with risks and opportunities. In Illinois, securities attorneys play an important role when it comes to guiding investors through the challenges and legal intricacies of investment disputes. Here’s how they make a difference:

Expert Guidance on Securities Disputes: Illinois FINRA attorneys specialize in resolving conflicts between investors and brokers or financial advisors. Whether it’s a case of misrepresentation, fraud, or negligence, we have the experience and knowledge to properly navigate through the complexities of securities law to protect your investments.
Advocacy in FINRA Arbitration: Most investment disputes are resolved through FINRA arbitration instead of court trials. Illinois securities attorneys are used to representing clients in these arbitrations, meaning that their case is presented effectively and their rights defended to the best extent possible.
Recovery of Investment Losses: Through meticulous analysis and aggressive advocacy, securities attorneys work to recover losses that clients have suffered due to unethical or illegal investment practices. This may involve recovering funds lost to unauthorized trading, poor investment advice, or fraudulent schemes.

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Assessing the Viability of Your FINRA Arbitration Case

Clients frequently ask about the feasibility of pursuing legal action against their broker-dealers. A common question is whether it might be more straightforward to resolve the issue directly with the brokerage firm. First, we want you to understand that it is exceptionally rare for broker-dealers to actually acknowledge faults voluntarily. Some might even attempt to stall or weaken your claim, potentially jeopardizing your financial recovery.

Although, like any attorney, we can’t promise a specific result in a securities fraud arbitration, the strength of your claim, the gravity of the alleged misconduct, and other pertinent details influence the outcome of your case. Engaging experienced securities arbitration attorneys from Stoltmann Law is the best path to making sure your rights are vigorously defended. Our legal team is ready to improve your chances of securing compensation by offering expert representation against broker-dealers and their legal teams.

Keep in mind that decisions made by the arbitration panel are typically final, with very limited opportunities for appeal. Effective legal representation is critical from the start, so you need attorneys who not only meticulously assess and understand your financial losses but also skillfully craft and manage your securities fraud litigation.

Illinois Securities Law of 1953

When it comes to your financial investments, having the backing of a dedicated Illinois FINRA & Securities attorney can help you successfully protect yourself. They not only offer defense against potential financial discrepancies but also provide the foresight to avoid such challenges. If you’re navigating the securities market in Illinois, consider securing legal expertise to protect and maximize your financial interests. Contact our team at Stoltmann Law today to ensure your investments are safeguarded by the best legal strategies available.

The Illinois Securities Law of 1953 – 815 ILCS 5/1, et seq., was passed in order to protect Illinois investors from securities fraud. Broader than those protections provided by the federal securities laws and most other state securities laws, the Illinois Securities Act is a true weapon for experienced Illinois attorneys who represent defrauded investors.

It is a violation of the Illinois Securities Law of 1953:

F. To engage in any transaction, practice or course of business in connection with the sale or purchase of securities which works or tends to work a fraud or deceit upon the purchaser or seller thereof.
G. To obtain money or property through the sale of securities by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.

To employ any device, scheme or artifice to defraud in connection with the sale or purchase of any security, directly or indirectly.

815 ILCS 5/12. This is the standard anti-fraud provision and is similar to other securities statutes.

The Illinois Securities Law also states

Every sale of a security made in violation of the provisions of this Act shall be voidable at the election of the purchase exercised as provided in subsection B of this Section; and the issuer, controlling person, underwriter, dealer or other person by or on behalf of whom said sale was made, and each underwriter, dealer or salesperson who shall have participated or aided in any way in making the sale, and in case the issuer, controlling person, underwriter or dealer is a corporation or unincorporated association or organization, each of its officers and directors (or persons performing similar functions) who shall have participated or aided in making the sale, shall be jointly and severally liable to the purchaser as follows:

- for the full amount paid, together with interest from the date of payment for the securities sold at the rate of the interest or dividend stipulated in the securities sold (or if no rate is stipulated, then at the rate of 10% per annum) less any income or other amounts received by the purchaser on the securities, upon offer to tender to the seller or tender into court of the securities sold or, where securities were not received, of any contract made in respect of the sale; or

2) if the purchaser no longer owns the securities, for the amounts set forth in clause (1) of this subsection A less any amounts received by the purchase for or on account of the disposition of the securities.

If the purchaser shall prevail in any action brought to enforce any of the remedies provided in this subsection, the court shall assess the costs together with the reasonable fees and expenses of the purchaser’s attorney against the defendant…815 ILCS 5/13(A) (emphasis added).

The remedy provision is where the Illinois Securities law differs from almost every other state securities law. The provision for the recovery of attorney’s fees, costs, and interest makes the Illinois Securities Law one fo the most punative securities laws in the country. This is good news for Illinois investors. What this means is, if you allege a violation of the Illinois Securities Law and win on that count, the court or arbitrators are bound by law to compensate you for your losses, interest at 10% or whatever rate the investment offered, costs of brining the action, and your attorney’s fees.

Under the federal securities laws, in order to prevail, an investor must provide intent to defraud. This can be pretty difficult actually. The good news is, case law in Illinois has clearly interpreted the Illinois Securities Law holding that scienter is not an element of a cause of action. See Foster v. Alex, 213 Ill. App. 3d 1001, 1005-06 (5th Dist. 1991); Allstate v. Robert W. Baird, 756 F.Supp.2d 1113, 1162 (D. Az. 2010); and Schwitters v. Tomlinson, 1996 US Dist. LEXIS 1397*3 (N.D. IL. Feb 9, 1996).

Additionally, only statutory and not equitable defenses may be raised by a defendant for claims under the ISL. See McConnell v. Surak, 593 F. Supp. 1096, 1099 (N.D. Ill. 1984). This is really critical because it means that issues like reasonable reliance on the misrepresentations and whether the investor was comparatively at fault, are not defenses under this statute. Instead, only statutory defenses, like statutes of limitation, are allowed. Under the Illinois Securities Law, the statutes of limitation are three years from the date of the transaction or violation at issue. However, that date can be extended by virture of the discovery rule or other equitable tolling. Still it is never a good idea to sit on your claims, so if you are the victim of investment fraud, you should act quickly and hire an Illinois FINRA attorney.

Last, Illinois has also written a mountain of regulations that go side-by-side with the Illinois Securities law. One of those regulations, Regulation 130.850, states that “No dealer or salesperson shall effect transactions for any customer’s account which are excessive in size or frequency or unsuitable in view of the financial resources of the customer.” (Emphasis Added). The Illinois Administrative Code at 14 Ill. Adm. Code 130.285 provides that “The failure of any dealer or salesperson to comply with Sections 130.810, 130.821, 130.824, 130.825, 130.826, 130.827, 130.850, and 130.851 of this Part shall constitute an inequitable practice in the sale of securities and a fraudulent business practice.” (Emphasis Added). Thus, a violation of Section 130.850 is deemed to be a fraudulent business practice in violation of 815 ILCS 5/12(F) as a matter of law. This is crucial because it means that even unsuitable investment recommendations, as opposed to just flat out fraudulent ones, are violations of the Illinois Securities law. Only the most experienced Illinois securitries and FINRA attorney’s understand the interplay between these regulations and the protections under the statutes.

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Stoltmann Law Offices, P.C. prides itself on aggressively prosecuting investment fraud across the country

Our team of lawyers has decades of experience fighting for investor rights in every forum. We use a hands-on approach with our clients and pride ourselves on being extremely diligent communicators. We understand most of our clients have been victimized once by someone they trusted, so we strive to create and maintain a relationship worthy of our clients’ trust and confidence. If you have any issues with your investments, retirement accounts, IRAs, brokerage accounts, financial advisors, or, if you have a business dispute or need more general guidance with litigation, please contact our firm today. We offer services nationwide, including in Chicago, Los Angeles, New York, Seattle, Atlanta, Dallas, Houston, Las Vegas, Pittsburgh, San Antonio, Phoenix, Minneapolis, St. Louis, Indianapolis, San Francisco, Denver, New Orleans, and Boston.

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Since its inception in March 2005, Stoltmann Law Offices, P.C. has dedicated its practice to representing investors in lawsuits and arbitration claims against brokers, financial advisors, investment advisors, and the companies they work for. Our Chicago investment fraud attorneys offer their clients a combined 35 years of experience fighting for investor rights from offices in Chicago, Illinois and suburban Barrington, Illinois and Downers Grove, Illinois.

The attorneys at Stoltmann Law Offices have dedicated their life’s work to representing investors who have been cheated or defrauded by those professionals they trusted with their hard-earned money and retirement savings, recovering in excess of $200 million for investors over the years.

Illinois FINRA & Securities Attorneys