Misled by Your Financial Advisor or About an Investment?
Daren A. Luma represents investors nationwide against brokerage firms and financial advisors in Financial Industry Regulatory Authority ("FINRA") arbitration, and in claims against registered investment advisers ("RIAs") and other bad actors in arbitration and court. Free consultation. You pay no legal fee unless you recover.*
Have you suffered significant losses ($100,000+) in your investment or retirement accounts on stocks, bonds, mutual funds, ETFs, options, hedge funds or other investments?
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Free, confidential consultation
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No legal fee unless you recover*
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Former defense attorney at one of the world's largest law firms and in-house counsel at a major brokerage firm
Experienced, Focused Investment Loss Recovery Attorney
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Strong Reputation — Over 26 years of practice specialized in the financial industry. I’ve achieved successful results in a wide variety of legal forums. Since 2018, I have represented over 400 investment victims and successfully recovered over $130 million for them.
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Individualized Attention — At my firm, unlike some securities litigation firms, you can trust that your case will be handled from start to finish by me instead of being handed off to a lower-level associate without the requisite knowledge or experience.
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Strategic Counsel — With experience as in house counsel within a large brokerage firm and 10 years with one of the largest (defense) law firms in the world, I offer clients a well-rounded perspective on their investment loss issue. From there, my firm develops a comprehensive plan to achieve the best possible outcome.
What Counts as Misrepresentation or Omission by a Broker or Financial Advisor?
If your stockbroker or financial advisor told you something false about an investment, or left out a fact you needed to know, and you lost money as a result, you may have a legal claim. These are called misrepresentations and omissions. They are among the most common reasons investors bring claims against brokerage firms and advisers.
What matters is whether the statement or the missing fact was important: something a reasonable investor would want to know before investing, such as the investment's risk, its costs, how easily it can be sold, or what it is likely to return.
Common examples
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Calling a risky investment "safe," "conservative" or "guaranteed."
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Hiding or playing down fees, commissions or surrender charges.
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Leaving out lock-up periods or redemption limits that keep you from getting your money back. Our article on non-traded BDC redemption limits explains how this happens with non-traded Business Development Companies ("BDCs").
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Selling complex products, such as structured notes and options strategies, without fairly explaining how they can lose money.
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Selling alternative investments, such as non-traded real estate investment trusts ("REITs") and private placements, as if they were low-risk or easy to sell.
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Promising steady income from an investment whose payouts were never secure.
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Recommending investments that do not fit a retiree's needs, which is common in cases of poor retirement advice and senior investor fraud and elder abuse.
Some "investments" are outright fraud from the start. If your money went into a scheme that paid early investors with new investors' money, see our page on Ponzi schemes.
A falling market alone is not a claim. The question is whether you were misled, and whether that caused your loss.
Who Can Be Held Responsible?
More than one party may be responsible for your losses:
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Your broker. The person who made the statement or recommendation.
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The brokerage firm. Brokerage firms must supervise their brokers. A firm can be held responsible for its broker's misconduct and for its own failure to supervise.
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Your investment adviser. RIAs owe their clients a fiduciary duty, which means they must act in your best interest. Misleading you can be a breach of fiduciary duty.
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Others involved in the sale. Depending on the facts, other people or companies who took part in the fraud may also be responsible.
How Are Investment Fraud Claims Brought?
Where your claim is heard depends on who you are bringing it against.
Against a brokerage firm: FINRA arbitration
Most brokerage account agreements require disputes to go to arbitration before FINRA, the regulator that oversees brokerage firms and runs the arbitration forum for disputes with them. A panel of arbitrators, not a judge or jury, decides the case.
Against an investment adviser: arbitration or court
Claims against RIAs usually go to arbitration under the advisory agreement, often before the American Arbitration Association ("AAA") or JAMS. If there is no arbitration clause, the claim may be brought in court.
Against others: court
Claims against other wrongdoers who are not bound by an arbitration agreement are generally brought in court.
At your free consultation, investment fraud lawyer Daren A. Luma reviews your account statements and documents and tells you which path fits your case.
How Long Do I Have to File a Claim?
Do not wait. Under FINRA Rule 12206, a claim is not eligible for FINRA arbitration once six years have passed since the event that gave rise to it.
Other deadlines, including statutes of limitations, can be much shorter, depending on the type of claim and the state. If you suspect your broker or advisor misled you, talk to an attorney now.
What Does It Cost to Hire an Investment Fraud Attorney?
Your first consultation is free and confidential, with no obligation.
Investor cases are handled on a contingency fee basis, with no hourly fees. You pay no legal fee unless you recover.*
Frequently Asked Questions
Do I need to live in New York to work with you?
No. Daren A. Luma, PLLC represents investors nationwide. FINRA offers 69 hearing venues, including at least one in every state, and generally selects the hearing location closest to where you lived when the events happened. Wherever you live, you can start with a phone call.
Can I recover my losses if the market simply went down?
Not on that basis alone. A claim requires misconduct, such as a misrepresentation, an omission or a recommendation that was not in your best interest, that caused your loss. A free case review can help you find out whether you have one.
Do I have to go to court?
Usually not. Most claims against brokerage firms are decided in FINRA arbitration, and most claims against investment advisers go to arbitration under the advisory agreement. Many cases settle before a final hearing.
How long do I have to bring a claim?
Under FINRA Rule 12206, a claim is not eligible for FINRA arbitration once six years have passed since the event that gave rise to it. Other deadlines can be shorter, so contact an attorney as soon as you suspect a problem.
What does it cost to hire you?
The consultation is free. Investor cases are handled on a contingency fee basis, with no hourly fees, and you pay no legal fee unless you recover.* How case costs and expenses are handled depends on the case and the client, and is discussed at your free consultation.
More questions? See our full FAQ.
*Investor cases are handled on a contingency fee basis, with no hourly fees. How case costs and expenses are handled depends on the case and the client, and is discussed at your free consultation.
Attorney Advertising. Prior results do not guarantee a similar outcome. The information on this page is general information, not legal advice. Contacting the firm does not create an attorney-client relationship. Responsible attorney: Daren A. Luma, Daren A. Luma, PLLC, 75 South Broadway, Suite 400, White Plains, NY 10601, (914) 304-4051, dluma@lumalegal.com.