It is well-established that a corporation may be held liable for the acts of its employees.  A key component of the analysis looks to whether the employee was acting within the scope of his employment, or with apparent authority.  With respect to the issue of whether the conduct fell within the scope of employment, courts generally scrutinise evidence tending to establish that the underlying activities were of the same general nature as the conduct that was authorized.  In the process, courts have made it clear that even if the pertinent conduct was completely unauthorized, the employer may nonetheless be held liable, so long as the questionable activities were incidental to conduct which was authorized.  Framed in compact terms, conduct may be viewed in an incidental light, provided it was foreseeable.  Extending the analysis further, it must be noted that even if these tests do not trigger liability, an employer may still be held accountable, assuming the victim relied on the apparent authority of the agent.  Obviously, these legal concepts are highly elastic.  Consequently, it can be difficult to speak with precision, absent a detailed understanding of the factual backdrop.  Taken as a whole, however, it is safe to say that these general principles of law may coalesce so as to impose liability on a brokerage firm when a stockbroker, a financial adviser, or a financial consultant has engaged in conduct that is purportedly unauthorized — regardless of whether the activities in question amount to negligence, recklessness, or even intentional fraud.

As a means of obtaining a better understanding of the legal dynamics, it may be in your interest to confer with a knowledgeable investment fraud lawyer.  Chris Bebel, a leading securities litigation attorney practising throughout the country, has represented scores of securities fraud victims over the course of his 30-year career.  In short, the combination of knowledge, skill, accomplishments, and expertise he maintains is so valuable — and so unique — that numerous law firms across the nation have retained him in connection with a broader, over-arching effort to build stronger cases.

Investors who have sustained losses at the hands of an untrustworthy — or incompetent — financial consultant must carefully weigh the benefits of hiring a veteran securities law attorney such as Chris Bebel, who has earned numerous commendations while pursuing financial adviser fraud in Texas and elsewhere.  The depth and breadth of Mr. Bebel’s background can scarcely be questioned.  To that end, he has, among other things, served as an SEC attorney, a trial lawyer, a trial advocacy instructor, a published author, a federal prosecutor, an appellate lawyer, and a securities law lecturer.  Additionally, it must be noted that Mr. Bebel has successfully pursued a vast array of cases in court, as well as in the securities arbitration context.  Investors should also recognize that Chris Bebel’s acumen and understanding extend well beyond the text of the regulations governing the securities industry.  Simply put, he understands how stock brokers operate in “real life.”  Consequently, he is keenly aware of the tactics unethical brokers might employ in an attempt to take advantage of unsuspecting Texas investors.  Time and time again, he has been able to capitalize on this advantage by “getting inside the mind” of his adversary, to the benefit of clients who have suffered losses in the financial markets.

Chris Bebel works closely with Bradley Ellison, Master Sergeant, U.S. Air Force (Ret.).  Mr. Ellison is blessed with a collection of impressive intellectual qualities, as shown by the six college degrees he has earned — three of which stem from graduate studies.  In recent years, Mr. Bebel and Mr. Ellison have worked closely with one another in connection with cases involving private placement fraud (a/k/a private offering fraud).  Expressed in general terms, these cases have encompassed the sale of unregistered securities under SEC Regulation D — which is commonly referred to as a “Reg. D,” for short.  As with so many other Ponzi schemes, the brokers — fueled by promises of robust commissions — portrayed the securities as safe and secure.  Regrettably, massive sums were lost.  Many of the brokers did not even come close to making accurate disclosures with respect to risk.  Inasmuch as these Ponzi scheme cases are now winding down, Mr. Bebel and Mr. Ellison are now evaluating cases involving the Woodbridge Group of Companies (“Woodbridge”).  According to the Securities and Exchange Commission, Woodbridge, along with Robert Shapiro, orchestrated a massive Ponzi scheme.

If you have sustained losses based on the representations of a financial advisor who failed to disclose the risks accompanying a given stock, contact a Texas investors attorney who has been on the “front lines” battling securities fraud for many years.  Chris Bebel is a skillful, talented securities lawyer.  With his sights trained on combating securities fraud in Texas, it would constitute a significant understatement to say that he maintains a significant aversion toward financial adviser fraud.  Mr. Ellison is of the same mind, so to speak.  (Caveat: As a reputable securities law firm, Tefteller Law, PLLC cannot, and will not, make any promises or guarantees of success in the securities litigation arena or otherwise.  It would not be ethical to extend such an assurance.)