Investor Education

My Financial Adviser Has Filed For Bankruptcy: Now What?

My Financial Adviser Has Filed For Bankruptcy: Now What?

In the wake of several large Ponzi schemes collapsing in 2017 and 2018, a growing number of financial advisers who steered clients towards these schemes are seeking bankruptcy protection. Fortunately, affected investors have the option of filing “nondischargeability” claims in the bankruptcy proceedings to prevent their financial advisers from escaping liability for “securities law violations,” including the sale of unregistered securities. The pertinent…

Secondary Liability of Financial Advisers for Materially Aiding the Sale of Unregistered Non-Exempt Securities Under the Uniform Securities Act (2002)

Secondary Liability of Financial Advisers for Materially Aiding the Sale of Unregistered Non-Exempt Securities Under the Uniform Securities Act (2002)

Subsection 509(2) of the Uniform Securities Act (2002) (the “USA”) provides the purchaser of an unregistered non-exempt security with a cause of action against the seller of the security. [1] Subsection 509(8)(d) of the USA provides the purchaser of an unregistered non-exempt security with a cause of action against a broker-dealer,…