Stock Brokerage Firms May Be Held Liable When The Financial Advisers They Employ Hurt Customers While Violating The Rules Of The Securities Industry: Exploring The Broad Reach Of Agency Law, Vicarious Liability, Respondeat Superior, And Control Person Liability
Month after month, year after year, stock brokers counsel their clients to purchase one security or another. Fortunately, the bulk of those recommendations are delivered in a forthright manner. And, as a general rule, stockbrokers generally ground their recommendations on a “reasonable basis,” as required by the rules governing the conduct of securities industry professionals. As an additional matter, financial advisers customarily act in conformity with the requirement that they tailor their investment recommendations to the specific attributes and characteristics of the underlying customer. Regrettably, however, exceptions exist on all three fronts. Moreover, the exercise of logic and common sense suggests that financial advisers will be more likely to stretch the truth — and distort the underlying risk characteristics — when momentous profits are within reach. Extending the analysis further, it goes without saying that brokers, and the firms that employ them, usually receive hefty commissions when they sell restricted securities through private placements. Propelled by the enormity of those commissions, broker-dealers (brokerage firms, in common parlance) all-too-frequently succumb to fiscal temptations. In doing so, they may “look the other way,” and thereby ignore their ongoing responsibility to prevent and detect “red flags” (indications of irregularity). Regardless of the precise dynamics, brokerage firms are regularly held responsible for the misconduct in which employees engage. Basic, fundamental principles of agency law, vicarious liability, respond-eat superior, control person liability, etc. call for nothing less.
If you believe that your interests have been sacrificed in connection with a quest for profits, you may ultimately conclude that the retention of a securities law attorney and a securities law firm constitutes a necessity. To be sure, there are plenty of talented attorneys who possess little or no understanding of the securities markets or the written and unwritten rules governing the securities industry. Framed in elementary terms, they may be capable of developing the “big picture,” but the odds are too high that they will fail to appreciate an assortment of details and nuances, the likes of which can make a strong case even stronger.
Chris Bebel is an acclaimed, highly regarded securities lawyer who has consistently distinguished himself in the securities fraud area for more than three decades. Framed in succinct terms, he possesses a powerful mix of trial skills, knowledge, experience, and tenacity that sets him apart from other securities lawyers. The excellence he has demonstrated in the securities arbitration arena and the courtroom place him on a different level. Over the course of his career, he has enjoyed tremendous success while serving as a federal prosecutor, an SEC attorney, a securities fraud expert witness, and an advocate for victims of securities fraud — as demonstrated by the numerous occasions on which the Wall Street Journal, the New York Times, and the Los Angeles Times, among others, have called upon him for his analysis and insights.
Mr. Bebel works closely with Bradley Ellison, a cerebral paralegal who has dedicated countless hours toward his objective of advancing the interests of Texas investors. While working in tandem with one another, Mr. Bebel and Mr. Ellison have worked feverishly to combat securities fraud in Texas. Fortunately, they have encountered a superb level of success, to the dismay of those what have been held accountable.
If you wish to speak with a prominent investment fraud lawyer regarding the stock market losses you have sustained, give Chris Bebel a call. Explain the details of your case so as to provide Mr. Bebel with an understanding of the surrounding dynamics. Free consultations are regularly provided to investors who have suffered financial losses. At the same time, however, it must be understood that Mr. Bebel may not accept your case. Over the years, he has declined numerous cases for a variety of reasons.
Additionally, it is important to keep in mind that although Mr. Bebel is viewed as a leading Texas investors attorney, he does not confine his practice to financial adviser fraud in Texas. To the contrary, Mr. Bebel has long represented investors situated throughout the nation. So, if you are in need of a top-notch securities litigation attorney, reach out to Chris Bebel — regardless of where you reside. Consistent with the foregoing, he vigorously pursues cases involving stock broker fraud from coast-to-coast. Plus, he is tenacious in his representation of investors without regard to whether the underlying case stems from fraudulent conduct involving publicly traded stocks vis-à-vis private offering fraud, which can also be referred to as private placement fraud.
