New York City Investment Fraud & FINRA Arbitration Lawyer

A New York Investment Fraud Lawyer With Deep New York City Roots

Daren has lived in the New York metropolitan area his entire life. He attended high school in New York City, at Fordham Preparatory School in the Bronx, earned his law degree at Fordham University School of Law in Manhattan, and worked in New York City for more than 10 years. Today his office is in White Plains, just north of the city. Many investors would rather sit across the table from their lawyer, bring a box of account statements, and talk through what happened. That is available here, by appointment.

New York City neighborhoods we serve

The firm represents investors in all five boroughs, including the Upper East Side, Upper West Side, Midtown, Greenwich Village, Tribeca, the Financial District and Battery Park City in Manhattan; Brooklyn Heights, Park Slope and Bay Ridge in Brooklyn; Forest Hills, Bayside and Douglaston in Queens; Riverdale in the Bronx; and Todt Hill and St. George on Staten Island. The firm also represents investors nationwide.

New York's investor protection laws

New York's securities fraud law, the Martin Act, is enforced by the New York State Attorney General's Investor Protection Bureau, at 28 Liberty Street in Lower Manhattan. The Bureau represents the public, not individual investors, and filing a complaint there does not start a case to recover your money. New York's highest court has held that investors cannot sue under the Martin Act itself, but that it does not bar common-law claims, such as fraud or breach of fiduciary duty, that stand on their own.

Common Investment Fraud and Financial Advisor Misconduct Claims

A falling market alone is not a legal claim. A loss caused by a financial advisor's or firm's misconduct can be. Common claims include:

• Misrepresentation and omission: a false statement, or the failure to disclose an important fact, about an investment's risks, costs, liquidity or returns. Fraud and misrepresentation

• Unsuitable recommendations: investments that did not fit your age, goals, risk tolerance or need for income, a frequent issue in retirement accounts.

• Overconcentration: too much of your money in one stock, sector or product, including a large position in your employer's stock.

• Churning (excessive trading): trading an account mainly to generate commissions.

• Unauthorized trading: trades made without your approval.

• Failure to supervise: a brokerage firm's failure to monitor its financial advisors.

• Breach of fiduciary duty: an advisor putting its own interests ahead of yours. Breach of fiduciary duty

• Complex and alternative products sold without a fair explanation, such as structured notes, options strategies, non-traded real estate investment trusts ("REITs") and private placements. Complex products · Alternative investments

• Financial exploitation of older investors. Senior fraud and elder abuse

• Ponzi schemes and other outright fraud. Ponzi schemes

How an Investment Loss Claim Works

1. Free consultation and document review

Daren reviews your account statements, trade confirmations, account opening forms and any emails or texts with your financial advisor, and tells you whether he sees a viable claim.

2. Choosing the forum

Most brokerage account agreements require FINRA arbitration. Claims against an RIA often go to arbitration before the American Arbitration Association ("AAA") or JAMS, depending on the advisory agreement, or to court. Claims against other wrongdoers may be brought in court, such as New York State Supreme Court or, in some cases, federal court in Manhattan or Brooklyn.

3. Filing and preparing the case

In FINRA arbitration, the case begins with a written statement of claim. The parties then help select the arbitrators, exchange documents, and prepare for a final hearing before a panel of one or three arbitrators, depending on the size of the claim. Many cases settle before the hearing.

4. Where the hearing happens

Under FINRA Rule 12213, FINRA generally selects the hearing location closest to the customer's residence at the time of the events that gave rise to the dispute. New York City is one of FINRA's hearing locations; FINRA's New York office, which has its own hearing rooms, is at Brookfield Place, 200 Liberty Street in Lower Manhattan. For most investors who lived in New York City when the events occurred, the hearing would be expected in New York City. FINRA also has hearing rooms across the harbor in Jersey City. If the closest location were in New Jersey, as it might be for some Staten Island residents, the rule lets you request a location in New York.

5. Deadlines

Under FINRA Rule 12206, a claim cannot be brought in FINRA arbitration once six years have passed since the event that gave rise to it. In New York courts, fraud claims generally must be brought within six years, or two years from when the fraud was or reasonably could have been discovered, if later. Other deadlines can be shorter. If you suspect a problem, talk to a lawyer promptly.

Why Daren's Background Matters

Daren has 26 years of experience in litigation, arbitration and regulatory matters involving the financial industry. He worked for 10 years at one of the largest defense law firms in the world, representing financial firms in litigation, arbitration and regulatory matters, and before that served as in-house counsel at one of the largest brokerage firms. He has seen how brokerage firms review customer complaints and build their defenses, and he now uses that experience for investors. Since founding the firm in 2018, he has represented over 400 clients and recovered over $130mm for investment victims. Prior results do not guarantee a similar outcome. He personally handles each case from start to finish. Daren is a graduate of Fordham University School of Law and is admitted to practice in New York and Massachusetts.

Why New York City investors choose Daren:

• 26 years in this field. He has spent 26 years on financial-industry disputes, including at one of the largest defense law firms in the world and as in-house counsel at one of the largest brokerage firms.

• A lifelong New Yorker. He went to high school and law school in New York City and has always lived in the New York area.

• Personal attention. Daren personally handles each case from start to finish.

• No hourly fees. Investor cases are handled on a contingency fee basis, and the firm is paid only if you recover.*

Fees: Free Consultation and Contingency Fee

Your first consultation is free and carries no obligation. Investor cases are handled on a contingency fee basis, with no hourly fees, and the firm is paid only if you recover.* How case costs and expenses are handled depends on the case and the client, and is discussed at your free consultation.

Frequently Asked Questions

Do I need a lawyer with an office in Manhattan?

No. Investors can hire a lawyer anywhere, and the firm represents clients nationwide. For New York City residents who want to meet in person, the White Plains office is a Metro-North ride from Grand Central.

Will my FINRA hearing be in New York City?

Usually. FINRA generally sets the hearing in the location closest to where you lived when the events happened. For most New York City residents, that is New York City.

Can I bring a claim against my financial advisor if the advisor isn't a broker?

Yes. Claims against RIAs and their advisors usually proceed in arbitration under the advisory agreement, often AAA or JAMS, or in court.

My account lost money in a down market. Do I have a case?

Not necessarily. A claim requires misconduct, such as misrepresentation, unsuitable advice, churning or unauthorized trades, that caused the loss. A free review can help you find out.

How does the firm charge for investor cases?

Investor cases are handled on a contingency fee basis, with no hourly fees, and the firm is paid only if you recover.* How case costs and expenses are handled depends on the case and the client, and is discussed at your free consultation.

What should I bring to the consultation?

Account statements, trade confirmations, account opening paperwork, and any letters, emails or texts with your financial advisor.

Talk to a New York City Investment Fraud Lawyer

If a financial advisor or investment firm cost you money, call Daren A. Luma, PLLC at (914) 304-4051 or request a free consultation. Meetings are available in person at 75 South Broadway, Suite 400, White Plains, NY 10601. The consultation is free, and investor cases are handled on a contingency fee basis, with no hourly fees: the firm is paid only if you recover.*

*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. This page provides general information, not legal advice, and 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.

Lower Manhattan skyline photo: Jakub Hałun, CC BY 4.0, via Wikimedia Commons.