If you have landed on this article, most likely because you probably just received a letter from FINRA via certified mail that states, “You are notified that the FINRA office is conducting an inquiry to determine whether violations of the federal securities laws or FINRA, New York Stock Exchange, MSRB rules, have occurred.” In the following paragraph, you’re being urged to submit a number of papers, respond to a number of queries, and/or provide on-the-record testimony to FINRA employees as required by FINRA rule 8210. The chances are you’ve never received or seen one of these letters before, and it can be very intimidating and cause a lot of anxiety. Robert W. Pearce, a nationwide regulatory defense lawyer with a practice that includes representation of broker-dealers and financial advisors answers one of the more frequently asked questions: What is a FINRA 8210 letter? What is a FINRA Rule 8210 Letter? Receiving a Rule 8210 letter implies that FINRA is seeking documents, information, or testimony from you regarding an investigation of a broker-dealer or a person who is registered or associated with a broker-dealer. Whether or not you are a person of investigation is uncertain. Need Legal Help? Let’s Talk. or, give us a ring at 800-732-2889. At this point, it would be a good idea to contact a lawyer who specializes in securities law and is familiar with FINRA regulations. Independent of whether you believe you are the subject of investigation, you are obligated to respond. Failure to do so can have dire consequences. In the case that you are the individual under investigation, you will be glad that you spoke with an attorney now rather than later. An attorney can help ensure that your rights are protected throughout the process and help guide you in providing the appropriate information and documents to FINRA investigators. What is a FINRA 8210 Request? FINRA Rule 8210 Provision of Information and Testimony and Inspection and Copying of Books gives FINRA the authority to request and examine and make copies of the books, records, and accounts of a member firm related to any matter being investigated, complained about, examined, or processed. In addition, this rule can seek and require testimony from any person associated with the member firm and require production of documents relating to FINRA-regulated activities. FINRA Rule 8210 is an important tool for ensuring compliance in the securities industry. It allows FINRA to keep a vigilant watch over potential violations and misconduct, ultimately providing customer protection and investor confidence. This request applies to firms as well as registered brokers, registered representatives, and other associated persons of the firm. FINRA may direct its 8210 requests to any person who is a member or associated with a member firm, such as officers, directors, employees, shareholders, and partners. As a registered representative, it is important to understand the implications of a FINRA 8210 request. These are rules that you choose to abide by when you become a part of the securities industry and registered with FINRA. A failure to comply with FINRA Rule 8210 could result in disciplinary action by FINRA. What Happens with the Information that I Provide to FINRA? The information obtained by FINRA through its Rule 8210 request can be used in a variety of ways, including enforcement investigations and proceedings. It also may be used to assess whether disciplinary action is necessary, as well as for market surveillance purposes. The information that FINRA obtains can be shared with other regulatory organizations, law enforcement, and government agencies. The information may also be disclosed by way of a subpoena in civil litigation. Responding to a FINRA Rule 8210 letter can be intimidating. There are a lot of things to consider and evaluate carefully before responding. When faced with a FINRA 8210 letter, it is in your best interest to seek a securities lawyer who is familiar with FINRA regulations to help you navigate the process. An experienced securities attorney will provide guidance and advice to ensure your rights are protected throughout the investigation. Do I Have to Respond to a FINRA Rule 8210 Letter? Yes, you must respond to the letter and provide any requested documents or on-the-record testimony. The consequences of not responding can be serious, including suspension or permanent bar from the securities industry. Do not jeopardize your career by failing to respond in a timely manner. You may not even be the target of the investigation, but your cooperation will still be essential in order to provide information that may help FINRA uncover any violations of the federal securities laws. It can be difficult to comprehend exactly what is expected from you when you receive a FINRA rule 8210 notice. An experienced FINRA defense attorney can answer your questions and guide you through the process so you understand your rights and responsibilities. The Law Offices of Robert Wayne Pearce, P.A. have over 40 years of experience defending FINRA inquiries, investigations and disciplinary proceedings. Contact our office today for a free consultation to discuss how we can help you respond to the FINRA 8210 letter. What are the Consequences of Not Responding to a FINRA Rule 8210 Letter? The consequences of not responding to a FINRA Rule 8210 letter are serious. And, more often than not, if the individual does not comply with this information request, the individual will be barred from the securities industry. If a registered broker or registered representative does not comply with FINRA Rule 8210 request, they will no longer be able to be associated with a member firm. If a registered firm does not comply with FINRA Rule 8210 request, then normally that firm is going to be expelled from the securities industry. The consequences are steep, and you should strongly consider the options available in responding to the FINRA Rule 8210 letter. FINRA has jurisdiction over all FINRA-registered firms, brokers, and associated persons. They can take disciplinary action against those who do not comply with the rules set forth in FINRA Rule 8210. If you are currently registered with a firm or you have been currently registered with a firm in the past 2...
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The Florida Stockbroker & Investment Fraud Lawyers at Law Offices of Robert Wayne Pearce, P.A. have been helping investors recoup their losses incurred due to unethical and illegal stockbroker activity for over 40 years. As an investor in Florida, you have the right to expect that your stockbroker or investment advisor will always act in your best interests. Unfortunately, this is not always the case. The Law Offices of Robert Wayne Pearce, P.A. is dedicated to representing investors nationwide who have been the victims of stockbroker fraud, investment fraud, and misconduct by broker-dealers. Our Florida stockbroker & investment fraud lawyers have recovered millions of dollars for our clients through securities arbitration and litigation. If you have suffered investment losses, we can help. Contact us today at (800) 732-2889 or fill out one of our short contact forms. What is Investment Fraud? When an entity, such as a brokerage firm, takes your money with the promise of investing it and then uses it for other purposes, you have been the victim of investment fraud. Investment fraud scams are frequently characterized by promises of guaranteed profits and low- to no-risk investments. Chances are if it looks too good to be true, it might be. Is Stockbroker Fraud Different from Investment Fraud? Stockbroker fraud is a type of investment fraud that occurs when your stockbroker or other financial professional makes false or misleading statements to you in order to sell you securities, such as stocks, bonds, or mutual funds. Stockbroker fraud is a form of investment fraud, but not all investment fraud is stockbroker fraud. IMPORTANT: If you are a victim of stockbroker or investment fraud, you may have a limited time to take action. The Florida stockbroker & investment fraud lawyers at The Law Offices of Robert Wayne Pearce, P.A. can help you recover your losses and hold the responsible parties accountable. Contact us today at (800) 732-2889. Recognizing the Signs That You May Be the Victim of Investment Fraud There are several signs that may indicate that you have been the victim of investment fraud. If you have experienced any of the following, you should speak with an attorney as soon as possible: The hardest part of investment fraud is often recognizing that it has occurred. Many times, people do not realize they have been the victim of fraud until they suffer a significant loss. Do Not Delay – Time May Be Running Out The statute of limitations, or the time you have to take legal action, may be shorter than you think. If you believe that you have been the victim of stockbroker fraud or investment fraud, contact an investment fraud attorney as soon as possible to discuss your legal options and to protect your rights. What is the Statute of Limitations for Investment Fraud in Florida? In the state of Florida, there are two separate timelines for investment fraud in violation of the Florida securities statutes: a two-year (2) statute of limitations and a five-year (5) statute of repose. The two-year statute of limitations for investment fraud in Florida begins to run on the day that you discover or reasonably should have discovered, the fraud. The five-year statute of repose for investment fraud in Florida begins to run on the day that the fraudulent activity occurred, regardless of when you actually discovered it. This means that if more than five years have passed since the fraudulent act occurred, you will not be able to bring a claim, even if you only recently discovered the fraud. There are other claims for common law fraud, breach of fiduciary duty, breach of contract with different statutes of limitation that may be longer under the facts of your case. For this reason, it is important to contact an experienced Florida investment fraud attorney as soon as possible if you believe that you may have been the victim of investment fraud. Do You Need to Hire an Investment Fraud Lawyer “Near Me”? Since securities are primarily a federally regulated industry, it is not necessary to hire a local Florida investment fraud lawyer. It is still important to find an attorney with experience handling investment fraud cases in Florida, as they will be familiar with the state’s securities laws. These state laws, also known as Blue Sky Laws, may differ from federal securities laws and can potentially provide additional protections for investors. Note: When hiring an investment fraud attorney, it is important to choose one who regularly practices in the field of securities law and arbitration. Securities law is a complex and ever-changing area of law, so you want to be sure that your attorney is up-to-date on the latest legal developments. Are You Dealing with Investment Fraud in Florida? Contact our Florida investment fraud lawyers at the Law Offices of Robert Wayne Pearce, P.A. today at (800) 732-2889. We represent investors nationwide who have been the victims of stockbroker fraud, investment fraud, and broker-dealer misconduct. We Have a History of Helping Investors Recover Their Losses The Law Offices of Robert Wayne Pearce, P.A. has helped investors recover their losses in securities arbitration and litigation for over 40 years. We are one of the most experienced FINRA arbitration law firms in the country and have recovered more than $170 million on behalf of our clients. In fact, we have recovered funds for over 99% of his investor clients through various avenues of recovery, including settlements, arbitrations, and court litigation. Attorney Pearce is a well-respected advocate for investors throughout the legal community, known as a fierce litigator throughout Florida and across the country. Some of our past results include: $21,041,285 FEDERAL COURT FINAL JUDGMENT In 2010, Robert Pearce won a case in federal court for $21,041,285. The final judgment was entered against the defendant for fraud, breach of fiduciary duty, and civil theft pursuant to Florida Statutes Sections 812.014 and 772.11. $7,840,000 FINRA ARBITRATION SETTLEMENT In this FINRA arbitration, Robert Pearce effectuated the resolution of the case through mediation on the eve of trial. This case involved a complex options trading strategy in the oil and gas sector against one of the largest Midwest broker-dealers in the...
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No one ever wants to receive an SEC subpoena, but when you do it is important to take action immediately so as to protect your future. In this article we will review what an SEC investigation subpoena is, the different types of SEC subpoenas you can receive, and what to do, step-by-step, if you receive an SEC investigatory subpoena. What is an SEC Subpoena? An SEC subpoena is a legal order for recorded testimony that is issued by the Securities and Exchange Commission in connection with one of its investigations. The subpoena requests documents, data, or both which are relevant to an ongoing investigation. Investment Losses? Let’s Talk. or, give us a ring at 800-732-2889. Note: If you get served with an SEC subpoena, it means you’re likely under suspicion of committing or witness to securities fraud even though the SEC will tell you not to conclude anything from the fact you were served with a subpoena. It is strongly encouraged that you consult with a SEC defense lawyer. SEC Subpoena Power The Securities and Exchange Commission (SEC) is the federal agency responsible for enforcing securities laws, proposing new securities rules, and regulating the securities industry. The SEC has the power to investigate almost any company or individual for securities fraud. The SEC is primarily interested in issues involving potential stock manipulation, false or misleading statements in offering documents, insider trading, and other areas where investors are being cheated out of money. The staff of the SEC has subpoena power which they can use to compel individuals and companies under investigation to produce requested documents and/or testify at hearings under oath about their involvement with certain companies or businesses. If you receive an SEC subpoena, your life could be turned upside down until the issue is resolved. There are two types of SEC subpoenas: Subpoena ad testificandum: This subpoena compels the person to whom it is addressed to appear at a specific time and place and testify under oath or affirmation. Subpoena duces tecum: This subpoena compels the person to whom it is addressed to produce documents in his possession or control, either at a designated location or before the person who signed the subpoena. What happens when you get an SEC Subpoena? When you get served with an SEC subpoena, it means that your records are being requested by a federal agency for an investigation. Generally, you’ll be told that you have 30 days from the date of service of this document to provide all records related to whatever it’s requesting. IMPORTANT: You will likely have to appear in front of a SEC enforcement official who may ask you questions under oath and subject to the penalty of perjury and/or making false statements to a government official. Do not lie about not having any records because if they come back and say you lied about having them, you could be charged with obstruction of justice. What should I do if I get an SEC Subpoena? Unfortunately, investigations by the SEC does happen from time to time. If you receive an SEC subpoena, it’s important to act quickly and be proactive. Below are the steps to take after receiving a subpoena from the SEC: Step 1: Consult a SEC defense lawyer who is experienced with SEC subpoenas immediately. Your lawyer will be able to guide you through the process and represent you during the investigation. An attorney can determine how to respond to your subpoena, what information you should immediately turn over, and help you avoid making any mistakes that could result in additional scrutiny or legal consequences. Step 2: Know your rights under the concept of “privileged” information. Under the attorney-client privilege, for example, you do not have to provide anything to the SEC if it would be between you and your lawyer. Step 3: Read the terms of the subpoena thoroughly. Make sure you understand them and determine what information must be turned over. If your subpoena requests specific documents, the SEC will likely want to review all of those documents. Step 4: Respond to the subpoena as soon as possible with an attorney by your side. Returning things too quickly without consulting a lawyer first could look bad for you during the rest of the investigation process. And if they ask for something that is difficult or unrealistic to produce, you can let them know that upon receiving their request. Some items may take longer than 30 days to find/produce depending on how easy it is for you to obtain (i.e., if there are thousands of emails it could take some time). Step 5: Keep a detailed record of all aspects of the process, including any contact or communication with an SEC investigator(s) so that you can protect yourself down the road with evidence in case there is any uncertainty about what happened during the investigation process. Step 6: Keep the details of your case confidential with yourself and your legal representation. Do not discuss or share information about your case with anyone who isn’t an attorney because you do not want to risk incriminating yourself. Step 7: Be proactive and do not engage in any activity that could be considered obstruction of justice, such as lying or concealing information. What types of records might the SEC subpoena? The Commission may subpoena documents related to financial transactions (including transfers of money between accounts), communications (including e-mails), photographs, videos, and other data like employment history or company policies/employee handbooks/training manuals. For example, the SEC may subpoena communications related to specific stock sales or actions taken during an acquisition. Schedule a Consultation with an Experienced SEC Defense Attorney If you are served with an SEC subpoena, you should promptly contact a lawyer experienced in representing parties dealing with federal investigations to guide you through how to handle your case and protect yourself. The Law Offices of Robert Wayne Pearce, P.A. has over 40 years of experience dealing with the SEC subpoenas and enforcement actions. Our attorneys can help you determine what information needs to be turned over, provide advice on how to handle the...
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