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Does A Brokerage Firm Really Need An Attorney?

By  of Shustak Reynolds & Partners, P.C. posted on Tuesday, July 22, 2014.

“I hate weekends because there is no stock market.”
Renee Rivkin

Renee Walter Rivkin should have enjoyed the weekends more. Born June 6, 1944, and studied law at the University of Sydney, Rivkin became the youngest member ever of the Sydney Stock Exchange. Over his 30-year career, he developed into a well-known stockbroker and entrepreneur gaining recognition with his publication of the Rivkin Report, in which he would advise what stocks to buy and sell.

In April 2003, following a long-running investigation by the Australian Securities and Investments Commissions, he was found guilty of insider trading.

He took his own life on May 1, 2005.

Jordan Belfort was born in the Bronx and started his career at the L.F. Rothschild firm, before launching the brokerage firm Stratton Oakmont, functioning as a boiler room that employed over 1,000 brokers and was involved in more than $1 billion worth of stock issues. In 1988, Belfort’s firm was shut down and he was indicted for securities fraud and money laundering. He served 22 months in federal prison.

Ponzi schemes, indictments, and stories like Rivkin’s and Belfort’s only aid Hollywood and the court of public opinion. They are ready to capitalize on the stories of illegal brokers and brokerage practices. Unfortunately, tales of illegal dealings often hurt the profile of above-board firms and allow for unnecessary, unreasonable legal allegations from clients to ensue. Furthermore, Wall Street is a mecca for traders ready to make a buck with little regard for ethics, which can easily get the firm in just as much trouble. Now is the time for brokerage firms to arm themselves with the power of the law.

You Can’t Afford To Not Know

Whether you’re dealing with trader misconduct because of civil theft of funds, unauthorized trading, fraudulent asset transfers, or excessive trading, you cannot afford to be ignorant of laws and regulations directly affecting your brokerage firm. Additionally, client allegations that result in hearings before the SEC, FINRA, the NFA and other SRO’s can cripple a firm without the right representation.

We Know The Law

You need a firm with a history of representing broker-dealer firms and registered representatives. Shustak Reynolds & Partners, P.C. understand the complexity of the securities and financial industry. We understand that when there is a dispute or an accusation of fraud, breach of fiduciary duty, churning or other misconduct, the stress can be overwhelming. Let the weight rest on our shoulders. Contact us today.

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