The Law Offices of Robert Wayne Pearce, P.A. has fought for defrauded investors in Eugene and across Oregon since 1980. Attorney Robert Wayne Pearce represents investors against brokerage firms of all sizes and has the experience to pursue recovery through FINRA arbitration, state court, and federal litigation. If you suspect your broker violated your trust, call us today for a free consultation at (800) 732-2889 or send us a secure message online. We are ready to fight for what you are owed.
What is investment fraud?
Investment fraud involves any deceptive scheme carried out by a broker or financial advisor that manipulates investors into making decisions that ultimately cause them to lose money. It is not always obvious when it is happening, and many victims in Eugene spend months or even years believing their losses were simply the result of a bad market before discovering the truth.
Under Oregon Revised Statutes 59.135, a law that specifically addresses fraud and deceit in connection with securities transactions, it is unlawful for any broker or advisor to make false statements, omit material facts, or engage in any course of conduct designed to deceive an investor. A material fact is any piece of information that a reasonable investor would want to know before making a financial decision, and brokers who hide or misrepresent those facts are breaking Oregon law.
The forms this fraud takes can vary widely. Some fraudsters inflate projected returns on an investment product to make it sound safer or more profitable than it actually is, while others go further and steal client funds outright. Whatever form it takes, the financial and emotional toll on investors can be severe, and the misconduct often runs deeper than a single bad trade.
What types of investment fraud cases do we handle in Eugene?
We handle Ponzi schemes, churning, unauthorized trading, misrepresentation, failure to supervise, and other forms of broker misconduct throughout Eugene, Portland, Salem, Bend, Springfield, and Hillsboro. Our firm pursues these claims through securities arbitration and litigation. If any of the following sound familiar, contact us today for a free case review.
Ponzi schemes
Ponzi scheme victims can often recover 100% of their investment and more through FINRA arbitration, and many Eugene investors don’t realize that option is available to them until they speak with an attorney.
A Ponzi scheme is a type of investment fraud where the perpetrator pays returns to earlier investors using money collected from new investors rather than from any actual profits generated by a legitimate investment. The scheme relies entirely on a constant flow of new money, and when that flow slows or stops, it collapses. Under Oregon Securities Law, investors who were misled into participating in a Ponzi scheme have strong legal grounds to pursue recovery against the operators and, in many cases, against the brokerage firms that failed to detect or stop the scheme.
The Law Offices of Robert Wayne Pearce, P.A. has helped Oregon victims recover Ponzi scheme losses and knows how to build the kind of case that holds every responsible party accountable. Many victims only discover what happened when withdrawals are suddenly frozen or the perpetrator disappears entirely, which is why acting quickly after you suspect fraud gives you the best chance at full recovery.
Churning and excessive trading
Churning happens when a broker executes excessive trades in your account not to grow your wealth, but to generate commissions for themselves at your expense. It is one of the more common forms of broker misconduct our firm sees, and it is one that investors frequently miss because the activity is buried inside account statements filled with unfamiliar symbols and transaction codes.
Excessive trading violates ORS 59.135 and FINRA Rule 2111, an industry rule that requires brokers to have a reasonable basis for every trade recommendation and to act in the best interest of their client rather than their own bottom line. When a broker ignores that standard and churns an account, the losses compound over time while the commissions quietly accumulate on their end.
One of the clearest signs of churning and excessive trading is an account that shows dozens of short-term trades over a relatively brief period, particularly when the account balance is declining despite all that activity. If you have reviewed your statements and noticed that pattern, you may have a strong claim. Many victims don’t realize what was happening until the losses have already become significant, but that does not mean recovery is out of reach.
Unauthorized trading
Your broker does not have the right to move money in your account without your knowledge or approval, and under Oregon law any trade executed without your explicit consent is a direct violation of your rights as an investor.
ORS 59.135(2) requires brokers to obtain client consent before making any trades on their behalf. That requirement exists because your account is your money, and no broker has the right to move it without your direction. When a broker bypasses that consent, whether by assuming approval they were never given or by deliberately concealing trades from a client they know would object, they are violating both Oregon securities law and the industry rules that govern their conduct.
Brokers who trade without client approval may owe full restitution for every unauthorized trade made, and our attorneys know how to document and present that evidence in a way that holds them accountable. What makes these cases particularly difficult for victims is that unauthorized trades often go unnoticed for extended periods. Investors who trust their broker and don’t review account statements closely can end up absorbing significant losses before they realize anything improper has taken place. If you have spotted trades in your account that you never approved, call us at (800) 732-2889 or send us a secure message online and let us review what happened.
What Oregon laws protect investors from securities fraud?
Oregon’s securities laws, particularly ORS 59.135 and ORS 59.115, give victims of securities fraud and investment fraud some of the most powerful legal tools available anywhere in the country for recovering losses from fraudulent brokers and brokerage firms.
ORS 59.115 is especially significant for victims because it goes beyond simply holding the primary fraudster accountable. If you win a claim under this statute, you are entitled to recover your full principal, statutory interest at 9% per year calculated from the date of your original investment, and attorney fees paid by the losing party. The statute covers not just outright fraud but failures of disclosure as well.
Oregon’s Unlawful Trade Practices Act, found at ORS 646.608, adds another layer of protection by prohibiting unfair and deceptive business practices within the securities industry, including market manipulation, insider trading, and the exploitation of non-public information for personal gain. The Oregon Division of Finance and Corporate Securities also regulates the industry at the state level, licensing brokers and investment advisors operating in Oregon and investigating complaints against them.
Taken together, these laws create a framework that strongly favors the investor. That said, these protections only work for investors who act before the deadlines run out, and those deadlines can arrive sooner than most people expect.
What is the statute of limitations for investment fraud claims in Oregon?
In Oregon, investment fraud claims must be filed within 3 years of the securities sale or within 2 years of discovering the fraud, whichever comes first. If you have been the victim of investment fraud in Eugene, waiting too long to act could permanently bar your claim, regardless of how strong your evidence is or how clear the misconduct was.
That second deadline is worth paying close attention to, because it means the clock can start running before you even know something went wrong. Under the FINRA Code of Arbitration Procedure, which governs most investor claims against brokers, there is a separate 6-year eligibility window from the date of the event giving rise to the dispute, and missing that window closes the door entirely on arbitration.
Federal securities fraud claims carry their own timeline, generally requiring action within 5 years of the violation or 2 years from the point you discovered or should have discovered it. Missing any of these filing deadlines can eliminate your right to recover even when the evidence of fraud is clear and well-documented.
An experienced attorney can evaluate your specific timeline, identify which statutes apply to your situation, and confirm whether your claims are still actionable. The sooner you reach out, the more options you have.
How can a Eugene investment fraud lawyer help you recover investment losses?
A Eugene investment fraud lawyer investigates your broker’s conduct, builds your case, and pursues recovery through FINRA arbitration or litigation on your behalf. Recovering investment losses from a broker or brokerage firm is not something most investors are equipped to do on their own, and the firms you are up against have legal teams with deep experience defending these cases.
Without an attorney who understands securities law and the FINRA arbitration process, the odds are stacked against you from the start. Our attorneys conduct a thorough review of your account statements, trade confirmations, and all communications between you and your broker, looking for patterns of misconduct that prove your broker violated their fiduciary duty, the legal obligation every broker owes their clients to act in their best interest rather than their own.
Robert Wayne Pearce has spent decades helping clients recover against major brokerage firms through FINRA arbitration and litigation, and he handles every case personally rather than passing it off to junior associates. We understand how disorienting it feels to discover that someone you trusted with your financial future may have been working against you, and we want you to know that we will fight relentlessly to get back what is rightfully yours. Most cases are handled on contingency, so you pay nothing unless we win your recovery.
How does FINRA arbitration work for Eugene investors?
FINRA arbitration is the primary dispute resolution process for investors bringing claims against brokers and brokerage firms, and for most victims of broker misconduct it is the fastest and most direct path to financial recovery.
FINRA, which stands for the Financial Industry Regulatory Authority, is the self-regulatory organization that oversees broker-dealers across the United States. When you open a brokerage account, the agreement you sign almost always includes a clause requiring that any disputes be resolved through FINRA arbitration rather than in court. That means arbitration is not just an option, it is typically the required venue for these claims. The process is faster than federal court litigation and considerably less expensive, and unlike civil court it allows investors to seek punitive damages on top of their actual losses.
The arbitration process works by convening a panel of neutral arbitrators who review the evidence submitted by both sides, hear testimony, and then issue a binding award that both parties are legally required to honor. A FINRA panel reviews evidence and issues a binding award based on the merits of the case, which means the strength of your documentation and the experience of your legal representation directly affect the outcome. Oregon investors file FINRA arbitration claims through Portland, which serves as the state’s designated hearing location.
Investigations of Eugene, Oregon Brokers by the Law Offices of Robert Wayne Pearce
Based on a search of the website of The Law Offices of Robert Wayne Pearce, P.A, the firm’s broker investigations database identifies the following broker located in Eugene, Oregon: William Hoffman (CRD #1542724), formerly registered with Royal Alliance Associates, Inc. is the subject of seven customer complaints tracked by the firm. According to the site, allegations against Hoffman include misrepresenting the features of a variable annuity purchased in 2016 (a dispute reported as pending), forging a client’s initials on account documentation, and misrepresenting variable and fixed index annuities in connection with two separate 2020 disputes that also alleged forged initials. One of the seven complaints was settled in the investor’s favor by Royal Alliance Associates; the firm denied the remaining six, and no further action has been taken by those customers to date.
Contact the Law Offices of Robert Wayne Pearce, P.A. to learn more about investment fraud in Eugene, Oregon
If you have suffered investment losses and suspect your broker may be responsible, do not wait to get answers. Call the Law Offices of Robert Wayne Pearce, P.A. at (800) 732-2889 or send us a secure message online for a free consultation and let our team fight for the recovery you deserve.