Herskovits PLLC is a boutique firm that represents individuals in the financial services industry. We have ample experience in a wide range of securities matters, and our practice areas include securities litigation and arbitration, securities industry regulatory defense, broker-dealer advisory services, securities industry employment litigation, and commercial litigation. Our office is located in New York City, but we can at times provide legal counsel to individuals in Milwaukee, Madison, Green Bay, Kenosha, Racine, and other cities across Wisconsin, 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.
Wisconsin "Blue Sky" Laws
The United States Securities and Exchange Commission (SEC) regulates the securities industry at the federal level. It seeks to protect investors, promote capital formation, and prevent fraudulent activity. To accomplish these objectives, it requires public companies to disclose numerous information to the public, thereby ensuring that individuals have access to complete and accurate financial information. Although the SEC regulates and enforces these laws at the federal level, each state has its own securities laws, known as "Blue Sky" laws. In Wisconsin, this law is known as the Wisconsin Uniform Securities Law.
The Wisconsin Division of Securities registers broker-dealers, securities agents, investment advisors, and registered representatives. It monitors the activity of these industry participants and investigates alleged violations of the securities laws. If it discovers a violation, it may bring an administrative, injunctive, or criminal action.
A recent Financial Industry Regulatory Authority (FINRA) arbitration proceeding demonstrates the enormous awards possible in these cases, and thus, the importance of obtaining the assistance of an experienced securities attorney to handle these matters. In April 2012, an arbitration panel in Milwaukee awarded Claimant $1.9 million in compensatory damages. In the Matter of the FINRA Arbitration Between Ashley Furniture Industries, Inc., Claimant, v. J.P. Morgan Securities, LLC, Respondent (FINRA Arbitration 10-03792, April 26, 2012)].
Claimant, Ashley Furniture, asserted numerous causes of action relating to Respondent's recommendation to purchase auction-rate securities. Claimant alleged that Respondent failed to disclose both the risks involved with this particular investment and the illiquid nature of auction-rate securities. Furthermore, Claimant argued that Respondent did not disclose its own involvement in the auction-rate securities market. Although Claimant asked for over $26 million in compensatory damages and another $26 million in punitive damages, the arbitration panel decided that $1.9 million in compensatory damages was more appropriate.
Herskovits PLLC Can Help You Navigate Federal and State Securities Laws
If you are involved in a state or federal securities matter, you should seek the assistance of an accomplished securities lawyer. At Herskovits PLLC, we have the knowledge and skill to handle your case. We represent broker-dealers, registered representatives, and other industry participants in a wide range of securities disputes in court and in various arbitration and mediation settings.
We are a small firm, but our size is one of our best assets, and it 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 provide legal assistance to clients across the country. If you would like to seek our assistance or find out more about our firm, please contact us at 212.897.5410. You may also fill out our contact form.