Herskovits PLLC is a small firm dedicated exclusively to providing legal counsel to participants in the financial services industry. We have successfully litigated and arbitrated numerous securities disputes, and our small size gives us the flexibility to represent investors and broker-dealers in a broad range of matters. Our office is located in New York City, but we can at times provide legal counsel to individuals in Denver, Colorado Springs, Boulder, and other areas of Colorado, 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.
“Blue Sky” Securities Regulation in Colorado
At the federal level, the U.S. Securities and Exchange Commission (SEC) is the primary regulator of matters related to the securities offered, bought, sold, and traded in the United States—and also the primary enforcer of these laws and regulations. However, each state also has its own securities laws, known as “Blue Sky” laws. Many states have modeled their Blue Sky laws on the Uniform Securities Act of 1956 (and its subsequent revisions), and in Colorado, this law is the Colorado Securities Act.
The Colorado Division of Securities (the “Division”) is the unit among the state’s regulatory agencies charged with administration and enforcement of the state securities laws, including the Colorado Securities Act. The Division also licenses and regulates stockbrokers and investment advisers, as well as all securities offered and sold in Colorado.
A recent dispute between investment bank Oppenheimer & Company and an investor illustrates the importance of an experienced securities lawyer in Financial Industry Regulatory Authority (FINRA) arbitrations. In that case, a FINRA arbitration panel in Denver found Oppenheimer & Company liable for $1.1 million in damages for excessive trading in the investor’s account. [In the Matter of the FINRA Arbitration Between Steven Kolow, Claimant, v. Oppenheimer & Co. Inc., Respondent (FINRA Arbitration 10-03410, August 26, 2011)]
Interestingly, the investor was Steven Kolow—co-founder of the food business Boston Chicken, which later became Boston Market Corporation. Respondent Oppenheimer & Co. argued that as a sophisticated investor, Kolow was aware of the way his account was being handled, although the final award of damages did not specify whether this consideration affected the outcome.
Of note, from the outset of the evidentiary hearing, Kolow’s attorney requested that the broker who handled the account be excluded from the hearing while he was not testifying. This strategy typically seeks to prevent the witness from hearing testimony from other witnesses and using that knowledge to tailor his or her own testimony.
Herskovits PLLC Can Help You Navigate Federal and State Securities Laws
If you are a financial industry participant and are involved in a securities dispute, you should seek the counsel of an experienced securities litigation attorney. Herskovits PLLC is a small securities industry law firm with special practice emphasis on securities litigation. Our principal attorney has handled over 200 FINRA arbitrations and has a substantial track record of success. We value clear communication and efficient use of time and resources, and you can rest assured that our skilled advocates are working diligently to resolve your dispute in a manner most favorable to you.
Our offices are based in New York, and we can help clients nationwide who need legal advice, assistance, or representation with regard to either or both federal and state securities laws. If you would like to find out if we can help you, please contact us by calling 212.897.5410, or by utilizing the contact form here on this website. One of our attorneys will respond promptly to your inquiry.