Brokerage Fraud

What is  Brokerage Fraud

Brokerage fraud is a catch-all term that encompass all sorts of wrongdoing that takes place by brokers and brokerage firms.  It’s a catch-all term because fraud can take place in the form of misrepresentations or omissions. Since all wrongdoing by a broker is done without advising the client, all of the wrongdoing is fraudulent!

Contact Ms. Stoneman if you think you've been a victim of Brokerage fraud.

- Stoneman Law Offices - Texas & Colorado. (800) 783-0748 Free Consultation - Representing Clients Nationwide




It’s very important if you think you have a securities case to find a lawyer who is skilled in FINRA arbitrations, since your case will be required to be filed there.  There are not that many lawyers in the country who specialize in this area, like myself.  But one of the benefits of this area of law is that I do not have to be licensed in the states where my clients live. I have represented clients and arbitrated cases all over the country. Therefore, you can concentrate on hiring the best lawyer who specializes in this area wherever they may be located.

Because South Dakota is close to Colorado, where I live, I am more familiar with its securities laws and regulations and South Dakota arbitrators. Because arbitrators are from the state or region where the investor resides, my familiarity with the arbitrator roster and individual arbitrators in South Dakota and surrounding states is a significant benefit. And remember that I do not need to be licensed in the state of South Dakota in order to represent South Dakota investors in securities arbitrations. I don’t even need to affiliate with local counsel.  I also have the benefit of the knowledge of my husband Douglas Schulz (, who has been hired in over 1,140 securities related matters and testified in over 637 FINRA arbitrations and civil cases regarding investment and brokerage disputes. Because the majority of his expert work is also in Colorado and surrounding states, he too is very familiar with South Dakota securities arbitrators and arbitrations. 

In the State of South Dakota, investors are protected not only by legislative laws and statutes, but also by industry rules that prohibit brokers from engaging in fraud, unsuitable sales, churning, breach of fiduciary duty, failure to supervise, unauthorized trading, or negligence. Below are useful links and resources covering some of the investor protections available in the State of South Dakota:

  • The Division of Insurance -Securities (link is ) is responsible for regulating securities, franchise and business opportunity offerings for the state of South Dakota. The Division oversees the firms and individuals who offer and sell securities or offer investment advice to the public, franchises and business opportunities.

The Division states on its website, “[D]o not rely on the division to get your money back for you.” The only sure way you can recover your money is to hire a qualified securities arbitration lawyer to file a private securities arbitration.

Stoneman Law represents investors in all major South Dakota cities including Sioux Falls, Rapid City, Aberdeen, Brookings, Watertown, Mitchell, Yankton, Pierre, Huron and Spearfish. Our consultations are free of charge and the firm is only compensated if you recover.

Where Do FINRA Arbitrations Take Place in South Dakota?

All arbitrations for South Dakota residents take place in Rapid City.

And remember that arbitrations take place in the state where the investor resides, NOT where the brokerage firm or stockbroker office!!

South Dakota Securities News:

The South Dakota Division cites as it’s Top Investor Threat: Unregistered products/unlicensed salesmen”. This threat underscores the importance for investors to do business with well-known brokerage firms.  Doing so almost eliminates this threat since stockbrokers who work at brokerage firms are required by the firm to be licensed and the firm will not allow a stockbroker to sell an unregistered product.  There is yet another benefit of doing business with a well-known or established brokerage firm – if you have a problem, there will be money to pay you.  I can’t tell you how many cases I have evaluated where there was clear liability and clear damages, but no one from whom to collect.