Austin Investment Fraud Attorney – Securities Arbitration, Broker Misconduct, SEC & FINRA Arbitration Law Firm

Austin investors who have suffered financial harm due to broker negligence, unsuitable investment recommendations, or deceptive securities offerings can seek legal recovery through the Law Offices of Robert Wayne Pearce, P.A.. We represent clients in securities arbitration, regulatory enforcement, and litigation involving financial advisor misconduct across Travis County and Central Texas.

We represent Austin investors in arbitration before the Financial Industry Regulatory Authority (FINRA), AAA arbitration panels, and Texas courts. Our cases include breach of fiduciary duty, failure to supervise, excessive trading, margin abuse, and misrepresentation of investment risks and many more we can help you with.

Austin’s investor landscape includes tech professionals, retirees, entrepreneurs, and early-stage investors—groups frequently targeted with risky investment vehicles such as crypto funds, private placements, non-traded REITs, and high-fee annuities. These products often violate FINRA Rule 2111 (suitability) and reflect poor compliance under FINRA Rule 3110 (supervision).

Investor rights in Texas are protected by the Texas Securities Act (Chapter 4008 of the Texas Government Code). Under Section 4008.057, investors can bring civil claims against individuals or firms that misrepresent or omit material facts in the offer or sale of securities.

How Our Austin Investment Fraud Lawyers Can Assist You if You’ve Lost Money

Since 1980, our firm has tirelessly served investors here and across Texas. We handle a wide range of cases such as:

Churning (Excessive Trading)

  • Brokers generate commissions by making unnecessary trades.
  • Red flag: Frequent buying and selling without strategic purpose.
  • Violation: Breaches FINRA Rule 2111 on suitability.

2. Unauthorized Trading

  • Trades executed without client permission.
  • Breach: Violates SEC Rule 10b-5 and fiduciary duty.
  • Example: Broker buys high-risk options without consent.

3. Misrepresentation or Omission of Material Facts

  • False claims or failure to disclose risks.
  • Fraudulent intent: Hides fees, poor performance, or legal issues.
  • Common with: High-commission products or private placements.

4. Ponzi Schemes

  • Advisors promise consistent returns using new investors’ money.
  • Illegal under: Securities Act of 1933 and Investment Advisers Act of 1940.
  • Example: Bernie Madoff’s $65 billion fraud.

5. Selling Away

  • Broker sells unapproved investments outside their firm.
  • Often involves: Real estate scams, promissory notes, crypto fraud.
  • Violation: FINRA Rule 3270 (outside business activities).

6. Overconcentration

  • Portfolio heavily skewed towards one asset or sector.
  • Risk: Increased volatility and client losses.
  • Violation: Breach of diversification principles and duty of care.

7. Unsuitable Investment Recommendations

  • Advisors push products that don’t match client risk profiles.
  • Violates: FINRA suitability rules and fiduciary duty.
  • Example: Selling annuities to elderly clients with liquidity needs.

8. Affinity Fraud

  • Targets specific groups (religious, ethnic, professional).
  • Fraudsters exploit trust within the community.
  • Often paired with Ponzi or pyramid schemes.

9. Fee Fraud

  • Advisors inflate fees or bill for services not provided.
  • Violates: Fiduciary duty and SEC rules on fee disclosures.
  • Includes: “Double dipping” fees on managed accounts and commissions.

And many others (click here for all case types our firm handles)

Contact Our Attorneys Today

Don’t let fraud jeopardize your financial goals. At the Law Offices of Robert Wayne Pearce, P.A., we’re here to help you work toward recovering your losses.

With over 45 years of experience in securities law, our firm has tackled various complex regulations that govern investments.

We’ve already recovered more than $175 million for our clients, establishing ourselves as determined advocates for investor rights.

Call our Austin investment and securities fraud lawyers at (800) 732-2889 or fill out the free consultation form on the right to connect with an attorney near you. There’s no obligation, and we keep all inquiries confidential.

Our investment fraud representation extends throughout Central Texas beyond Austin. We serve investors in Round Rock, Cedar Park, Georgetown, Leander, Temple, Killeen, Bryan, College Station, and New Braunfels. Whether you’re dealing with private placement fraud, unauthorized trading, or breach of fiduciary duty, our experienced securities attorneys are committed to helping Central Texas investors recover their losses.

[Written by attorney Robert Wayne Pearce (Attorney Bio)]