A New York Metro Investment Fraud Lawyer for Northern New Jersey

Daren has lived in the New York metropolitan area his entire life. He grew up in Westchester County, attended Fordham Preparatory School and Fordham University School of Law, and worked in New York City for more than 10 years. His office is in White Plains, New York, a drive across the Hudson from Bergen County. 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 at the White Plains office, by appointment, and you can also start with a phone call.

Northern New Jersey communities we serve

The firm can represent investors anywhere in Bergen County, including communities such as Ridgewood, Saddle River, Upper Saddle River, Alpine, Franklin Lakes, Wyckoff, Tenafly, Englewood Cliffs and Mahwah, anywhere in Essex County, including Short Hills, Millburn, Montclair, Glen Ridge, Livingston and Essex Fells, anywhere in Morris County, including Morristown, Madison, Chatham, Mendham, Harding, Mountain Lakes and Florham Park, and anywhere in Somerset County, including Bernardsville, Far Hills, Peapack-Gladstone, Bedminster, Basking Ridge, Bridgewater and Warren, as well as nearby Summit, in Union County. The firm also represents investors nationwide.

New Jersey's investor protection laws

The New Jersey Uniform Securities Law is enforced by the New Jersey Bureau of Securities, part of the Division of Consumer Affairs in the Office of the Attorney General, in Newark. You can file a complaint with the Bureau, but it states that it does not have the authority to order restitution, and it suggests speaking with an attorney about arbitration or litigation. The law also gives investors their own right to sue in some situations, for example over a sale made through a materially false statement or omission, or over fraud by a paid investment adviser. For many of those claims, the investor must show that the seller or advisor knew the statement was untrue and intended to deceive, so whether the law fits your situation depends on the facts.

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 Jersey Superior Court or the U.S. District Court for the District of New Jersey, which sits in Newark.

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. Jersey City is FINRA's New Jersey hearing location, and FINRA has its own hearing rooms there, at 3 Second Street on the Jersey City waterfront. For most investors who lived in Northern New Jersey when the events occurred, the hearing would be expected in Jersey City. If a location in another state were ever treated as closer, the rule lets you request the New Jersey location.

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. Claims under the New Jersey Uniform Securities Law can have a much shorter deadline: generally two years after the sale or the investment advice, or two years after you knew or should have known of the claim, whichever is later. 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 Northern New Jersey 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 York metro resident. He grew up in Westchester County, went to Fordham Prep and Fordham Law, and has always lived in the New York metropolitan 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 located in New Jersey?

No. Investors can hire a lawyer anywhere, and the firm represents clients nationwide. Much of the early work can be done by phone, with in-person meetings in White Plains when you want them.

Will I have to travel to New York for a FINRA hearing?

Usually not. FINRA generally sets the hearing in the location closest to where you lived when the events happened. For most Northern New Jersey residents, that would be expected to be Jersey 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 Northern New Jersey 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.

Ford Mansion (Washington's Headquarters) photo: Acroterion, CC BY-SA 4.0; Palisades photo: Famartin, CC BY-SA 4.0; both via Wikimedia Commons.