Demystifying Securities Regulation
Many people, including a lot of lawyers, are intimidated by the government regulators who handle securities. But, not Otto Law. There is no area of law too technical for us to understand. We put the time and the research into understanding what the problem is and building a case to get you the results you deserve. We have often gone toe-to-toe with the U.S. Securities and Exchange Commission on behalf of oil and gas partnerships and other businesses – and won.
What Is Securities Law?
Securities regulation is often thought of as a convoluted area of law, full of government oversight. Essentially, securities are instruments you use to allow others to invest in your business. They might be in the form of stocks, mutual funds, bonds or other investments. They are regulated by the U.S. Securities and Exchange Commission, which exists to prevent fraud, insider trading and manipulation of markets.
The ability to sell securities is important to many businesses, especially those seeking investors for the first time. Emerging business ventures in new industries like cryptocurrency and marijuana production should consider consulting with a securities attorney to learn how they can grow their business in compliance with the law.
What Is Securities Litigation?
Securities litigation refers to lawsuits over investment losses that are caused by something other than market forces. These claims often involve conflicts of interest, a breach of fiduciary duty, insider trading, market manipulation or misrepresentation. Businesses that sell securities are obligated to provide certain information to investors, and failure to do so can lead to a lawsuit.
Is Arbitration Right For My Case?
In some cases, an investor or business will end up in arbitration over investment losses. In fact, arbitration for civil actions involving securities has dramatically increased over the last few decades. One of the benefits of arbitrating these cases is that the decision-makers already are familiar with securities issues, meaning you can resolve these disputes faster than going through a jury trial.
How Does The SEC Investigate Potential Securities Fraud?
The SEC can perform an informal investigation, which is broader and relies on the information you provide, or formal investigations, which are more serious and happen after the SEC has evidence of a violation.
In an informal investigation, the SEC will review the available evidence and decide whether to take enforcement action. In a formal investigation, the SEC will rely on its subpoena power to gather evidence, documents and information.
What Happens When A Case Is Brought Before The Financial Industry Regulatory Authority (FINRA)?
When a case is brought before FINRA, two types of dispute resolution are available instead of proceeding to litigation. Mediation involves the parties coming to an agreeable solution. Arbitration uses an impartial third party who listens to both sides and makes a binding decision. FINRA arbitration is completed before a panel of arbitrators that the parties select.
What Is The Role Of A Securities Litigation Attorney?
A securities litigation lawyer can provide crucial guidance and representation to individuals and corporations. As it is a highly specialized area of law, we have valuable experience navigating sensitive matters and high-stakes situations. We can defend you against various securities claims and represent you through litigation, mediation and arbitration.
Experience That Matters
With so much securities arbitration going through FINRA, you need an attorney with solid experience with the organization. As a FINRA arbitrator and judge for over 20 years, Mr. Hilbert has seen all sides of FINRA arbitration matters.
He has worked for claimants, respondents and as an arbitrator in countless cases throughout his career. Mr. Hilbert is also an arbitrator for The Federal Bar in Denver and serves as a mediator, CBOE and arbitrator for the National Futures Association. He uses this experience to provide comprehensive, diligent, knowledgeable representation from litigation to arbitration.