Stocks/Investment Losses
Butler, Vines and Babb represents individual investors against stock brokers and brokerage firms in cases both in court (state and federal) and arbitration. Because investors are routinely required to sign arbitration agreements before opening accounts, the majority of these cases are arbitrated before the NASD. Butler, Vines and Babb is one of the few firms which routinely handles cases of this nature on behalf of individual investors.
Ron Koksal began handling securities broker/dealers cases when he first started practicing law in 1973. Ron was involved in trials in both state and federal courts and arbitration before the National Association of Securities Dealers (NASD). Cases in which he was involved included all types of investments, including stocks, bonds, options, and commodities.
In the 1990's, Ron decided to concentrate in helping individual investors recover against stock brokers and their firms. He has helped individual investors recover damages from stock brokers and their firms in both arbitration and court cases involving broker misconduct of almost every type. Because of successes in these cases, Butler, Vines & Babb has expanded its practice of representing individual investors, and these cases are now also handled by Kevin Hardin.
Our attorneys enjoy membership in the Public Investors Arbitration Bar Association (PIABA). Membership in PIABA provides the firm with the latest developments in securities law and access to a nation-wide network of hundreds of attorneys equally committed to protecting investors.
Butler, Vines & Babb is using its experience and resources to help individual investors recover damages from stock brokers and their firms for the following types of improper conduct:
Churning: Churning is the excessive trading of securities. Stockbrokers are generally paid for executing trades in customers' accounts. If an account is excessively traded, the broker will earn more in commissions. If the trades are for the purpose of generating commissions rather than for a legitimate investment purpose, the broker has "churned" the account.
Unsuitable Trading: Rules of the New York Stock Exchange and the National Association of Securities Dealers, Inc. require brokers to learn their customers' investment objectives and risk tolerance. Those rules require a broker to "Know Your Customer." A broker's recommendations to the customer should be consistent with that customer's investment objectives and risk tolerance. Generally, a "retiree" who is interested in income with little or no risk should not be investing in high risk securities such as stock options, derivatives, or initial public offerings. If a broker makes recommendations inconsistent with the customer's stated investment objectives and the customer suffers losses, the broker and his firm can be held liable.
Unauthorized Trading: Unless you have given your broker written authorization that gives the broker discretion to trade securities in your account, he/she is required to discuss every trade with the customer in advance. Many times, brokers trade without proper authorization hoping that the trade will make money, in which event the customer will not generally complain. Since the brokerage business is based largely upon oral conversations, you should complain immediately if your broker is making unauthorized trades. If you sustain losses because of unauthorized trading, you may be able to recover damages.
Other Types of Actions: Some brokers may either overstate or understate certain matters in connection with stocks in order to induce customers to buy them. Remember, brokers must sell securities to get paid. If a customer suffers losses as a result of a broker's misrepresentations or if the broker omits information that he should have disclosed, a customer who suffers losses may have a valid claim against the broker and his firm.
Helping Senior Citizens: Our attorneys particularly enjoy representing senior citizens who, unfortunately, can be victims of securities fraud. The American Association of Retired Persons (AARP) has stated that nearly one in four of those older Americans who use a broker say that the broker did not tell them how much their investment transactions would cost them and that one in five say their advisors did not ask them about their personal financial goals before recommending investments. Clearly, older investors are attractive targets for securities fraud because they have saved substantial funds for their retirement.
Cases Pursued: Our law firm has represented individual investors in arbitration and court cases against major brokerage companies such as Merrill Lynch, Dean Witter, and Morgan Stanley, large regional firms such as J.C. Bradford, and many small-cap companies.
Attorneys with the firm that practice Securities Law include Ronald Koksal, and Kevin Hardin.
