Herskovits PLLC is a small firm that represents individuals in the financial services industry. We are skilled negotiators and tenacious advocates, and our size allows us to avoid the conflicts of interest faced by large firms and represent clients with numerous claims. Our office is located in New York City, but we can at times provide legal counsel to individuals in Louisville, Lexington, Bowling Green, Owensboro, and other parts of Kentucky, subject to admission pro hac vice. We are licensed to practice law in New York only and this webpage is for general informational purposes only.
Kentucky "Blue Sky" Laws
At the federal level, the United States Securities and Exchange Commission (SEC) is the primary regulator and enforcer of the securities laws. The SEC seeks to protect investors and encourage capital formation. It oversees the key participants in the financial services industry, and it requires public companies to dispose particular information to the public, thereby providing consumers with valuable investment information. Moreover, it has the ability to bring enforcement actions against companies and individuals for violations of the United States securities laws.
Although the SEC administers and regulates the securities laws at the federal level, each state has its own securities laws, known as "Blue Sky" laws. In Kentucky, this law is known as the Securities Act of Kentucky ("Securities Act"), and the Securities Division of the Kentucky Department of Financial Institutions ("Securities Division") administers and enforces the Securities Act.
The Securities Division has three branches: a licensing and registration branch; a compliance branch; and an enforcement branch. The licensing and registration branch is responsible for providing licenses for professionals in the financial services industry, and it also registers securities offered and sold in the state. The compliance branch ensures that participants are complying with the Securities Act, and the enforcement branch handles violations of the Kentucky securities laws.
In January 2012, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Louisville awarded claimant $3.2 million in compensatory damages, interest, and $49,000 in costs. [In the Matter of the FINRA Arbitration Between Thomas J. Gorter, Claimant, v. Questar Capital Corporation, Respondent (FINRA Arbitration 08-03514, January 13, 2012)]. Thus, because of the potentially enormous awards issued in FINRA arbitration proceedings, it is prudent to obtain the assistance of an experienced securities attorney to handle these matters.
In the above proceeding, Mr. Gorter, a former broker for Respondent, alleged numerous causes of action, including beach of contract, tortious interference with contractual relationships, negligence, and defamation. Mr. Gorter claimed that Respondent made defamatory statements to his customers and also made false reports to regulators about his employment. This dispute arguably arose when regulators discovered that Mr. Gorter was ineligible to engage in a particular business activity because he was missing a license. Although Mr. Gorter believed he was property licensed based on Respondent's advice, the company told him to transfer his clients to a registered representative of an affiliated company. To complete the transfer, Mr. Gorter made authorized changes to client documents. However, after he made plans to leave the company, the company fired him, claiming that he forged client documents.
Herskovits PLLC Can Help You Navigate Federal and State Securities Laws
If you are involved in a federal or state securities dispute, you should seek the assistance of an experienced securities attorney. At Herskovits PLLC, our managing partner has handled over 200 FINRA arbitration proceedings with an impressive record of success. We have the knowledge and skill to handle your case, and our attorneys will work diligently to resolve your dispute. Although we are a small firm, our size enables us to provide unmatched client service at affordable and predictable rates.
Our office is located in New York, but we can provide assistance to clients across the nation. If you would like to find out more about our services or see whether we can assist you with a securities matter, please call us at 212.897.5410. You may also utilize our contact form, and we will answer your inquiry as soon as possible.