I lived in Texas 30 years and was a partner at some of the largest law firms in Texas. I practiced solely securities litigation in Texas for quite a few years, and a large percentage of my securities cases are in Texas, though I now reside in Colorado. I have an office in Dallas, Texas and am very familiar with Texas securities law, rules and regulations, Texas courts and Texas arbitrators. Because arbitrators are from the state or region where the investor resides, my familiarity with the arbitrator roster and individual arbitrators in Texas and surrounding states is a significant benefit. I also have several reported state and federal decisions in the state of Texas.
If a member of your family in Texas has lost investments as a result of securities fraud, your family's financial security may be threatened. Losing what you have worked to build over time can set you back from long term financial goals such as building a college fund or saving for retirement. If you or your family have suffered losses related to securities fraud, filing a claim against the broker or investment firm in Texas is the only way to recover what is rightfully yours.
Investors in Texas are protected by legislative laws and statutes together with industry rules that prohibit brokers from engaging in fraud, unsuitable sales, churning, unauthorized trading, failure to supervise, breach of fiduciary duty, or negligence. Below are useful links and resources covering some of the investor protections available in the State of Texas:
- Texas State Securities Board is the State's Regulatory Agency that is responsible for regulating the securities industry in Texas.
- The Texas Securities Act is a state law regulating the securities industry. The Act contains provisions for the registration of securities, exemptions and sanctions for violations.
- FINRA is an independent regulatory agency that regulates all broker-dealers in the United States.
- Securities and Exchange Commission (SEC) also creates and enforces the securities laws.
Stoneman Law represents investors in all major Texas cities including Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano and Laredo. Consultations are free of charge and the firm is only compensated if you recover.Where Do FINRA Arbitrations Take Place in Texas?
All arbitrations for Texas residents take place in Dallas or Houston. And remember that arbitrations take place in the state where the investor resides, NOT where the brokerage firm or stockbroker office is located!!Texas Securities News
December 20, 2017. The Texas State Securities Board entered an Emergency Cease and Desist Order against USI-Tech Limited, an overseas firm that is promising low-risk, triple-digit returns from investments tied to Bitcoin mining. Neither USI-Tech nor the sales agents, Clifford Thomas of Suitland, Md., and Michael Rivera of Los Angeles, are registered to sell securities in Texas. The investment also is not registered in Texas.
The enforcement staff of the State Securities Board presented evidence to the Securities Commissioner that USI-Tech, based in Dubai, and two U.S.-based sales agents are soliciting investors in dozens of Texas cities through targeted craigslist advertisements, YouTube videos, and standalone websites.
The company and agents are offering for sale an investment contract in the mining of bitcoin. Mining uses significant amounts of computing power — and electricity consumption — to generate bitcoins for the decentralized online ledger that records and verifies bitcoin transactions.
The USI-Tech website says its Bitcoin platform “consistently provides returns of up to 150% per year.” The returns do not depend on the value of Bitcoin, according to the company.
The Texas State Securities Board stepped in because the State Securities Board regulates the registration of the mining investment as a security in Texas.
I predict that as bitcoin investments sold by broker-dealers gain in popularity, so will the cases against the firms for suitability violations and fraud in the sales presentations. Bitcoin investments will likely pay the brokers hefty commissions, because the riskier an investment, the more commissions the broker makes. This makes for a horrible conflict of interest that can result in harm for many investors.