Herskovits PLLC represents individuals in the financial services industry. We have experience handling cases before state and federal courts, regulatory bodies, and in various arbitration and mediation settings. Our office is located in New York City, but we can at times provide legal counsel to individuals in Baltimore, Columbia, Germantown, Silver Spring, and other areas across Maryland, 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.
Maryland "Blue Sky" Laws
The United States Securities and Exchange Commission (SEC) is the primary regulator and enforcer of the securities laws. It seeks to protect investors by requiring public companies to make particular investment information available. With this pool of knowledge, investors are better equipped to face investment uncertainties.
At the local level, states have adopted their own securities laws, known as "Blue Sky" laws. In Maryland, the law is known as the Maryland Securities Act. The Maryland Securities Division handles the registration of securities, investment advisors, broker-dealers, stockbrokers, and franchises. It also investigates potential violations of its investor protection laws; its primary purpose is to protect investors from misrepresentation and investment fraud.
Because of the intricacies involved in state and federal securities laws, as well as the huge awards possible in these cases, it is prudent to seek the assistance of an experienced securities attorney to handle these matters. In 2010, for example, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Baltimore awarded claimant $80.8 million in consequential damages. [In the Matter of the FINRA Arbitration Between Kajeet Inc., Claimant, v. UBS Financial Services Inc., Respondent (FINRA Arbitration 09-03990, August 3, 2010)].
In the above proceeding, claimant sought $110 million in consequential damages after it invested in student loan auction rate securities and was later unable to access the funds. Due to this illiquidity, claimant, a pay-as-you-go cell phone provider for kids, had to fire numerous employees. UBS marketed the auction rate securities as an alternative to cash, but did not adequately disclose the liquidity issues involved in auction rate securities. Therefore, because of the failure to disclose this information, the arbitration panel awarded consequential damages.
Herskovits PLLC Can Help You Navigate Federal and State Securities Laws
If you are a participant in the financial services industry and are involved in a federal or state securities dispute, you should seek the assistance of a knowledgeable attorney. At Herskovits PLLC, we are tenacious advocates and have experience in a wide-range of securities matters. Although we are a small firm, our size enables us to provide unparalleled client service at affordable and predictable rates. Our size also allows us to avoid the conflicts of interest faced by larger firms and represent clients with numerous claims.
Although we are located in New York, we can represent clients in states across the country. If you are interested in finding out what we can do for you, please contact us at 212.897.5410.
You may also use our contact form, and we will promptly respond to your inquiry.