Herskovits PLLC represents individuals in the financial services industry. We are knowledgeable in a wide range of securities matters, and we have ample experience litigating matters before state and local courts, regulatory bodies, and arbitration panels. Although we are a small firm, our size is one of our best assets, allowing us to avoid the conflicts of interest faced by large firms, and thus, represent clients with numerous claims. Our office is located in New York City, but we can at times provide legal counsel to individuals in Houston, San Antonio, Dallas, Austin, El Paso, and other areas of Texas, 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.
Texas "Blue Sky" Laws
At the federal level, the United States Securities and Exchange Commission (SEC) regulates and enforces the securities laws. It has the authority to oversee key participants in the financial services industry and bring enforcement actions for violations of the securities laws. At the state level, however, each state has its own securities laws, known as "Blue Sky" laws. In Texas, the law regulating the sale and offer of securities is called the Texas Securities Act.
The State Securities Board administers and enforces the Texas Securities Act. It has the responsibility of registering securities offered or sold in the state and also oversees participants in the financial service industry who sell securities or provide investment advice.
A recent Financial Industry Regulatory Authority (FINRA) arbitration proceeding demonstrates the stakes involved in securities matters, and thus, the importance of obtaining an experienced attorney to handle these claims. In 2011, a FINRA arbitration panel in Dallas awarded claimant $5.2 million—$4.4 million in compensatory damages ($2.2 million for lost income from the date of termination until the first hearing and $2.2 million for potential lost earnings from the date of the first hearing until the age of retirement), over $300,000 to cover the amount remaining on his Wealth Accumulation Plan, and almost $500,000 for lost bonuses. [In the Matter of the FINRA Arbitration Between Mel H. Schonhorst, Claimant, vs. RBC Capital Markets Corporation (f/k/a RBC Dain Rauscher, Inc.) and William Gumbert, Respondents(FINRA Arbitration 10-03097, December 19, 2011)].
In the above proceeding, claimant alleged that respondents breached the terms of his employment agreement, wrongfully terminated him, and maliciously defamed him in connection with his termination. As the court hints, claimant was fired for thin evidence of wrongdoing. Interestingly, the claimant sought expungement of the information that was placed on his Form U-2 upon termination. This information stated that claimant was a "subject of investigation" by a federal agency. Unfortunately for the claimant, the panel indicated that removal was not possible because the information was true at the time of the proceeding, and the statute of limitations had not run in regards to action by the federal agency. The panel also noted that expungement would not cure the harm done, and claimant should seek an amended form at the end of the investigation.
Herskovits PLLC Can Help You Navigate Federal and State Securities Laws
If you are involved in a federal or state securities dispute, you should contact an experienced lawyer, and Herskovits PLLC has the experience and knowledge to handle your case. Our founding partner has handled over 200 FINRA arbitration proceedings with an impressive record of success in the matters that have been tried to verdict. Furthermore, our small size allows us to provide unprecedented client service at reasonable and affordable rates.
We are a New York law firm, but we provide assistance to clients throughout the country. If you would like to secure our services in regard to a federal or local securities matter, please feel free to contact us at 212.897.5410. You may also submit a contact form, and we will get back to you as soon as possible.