Colorado Failure To Supervise Lawyers

Denver, Colorado Failure To Supervise Lawyers

Working With Investors Throughout Colorado Who Have Loss Claims Against Brokers and Investment Advisers

Shepherd Smith Edwards and Kantas, Colorado Failure To Supervise Lawyers (investorlawyers.com) represent investors who have sustained losses because of financial advisor misconduct or negligence. This can include a failure to supervise by the broker-dealer or investment adviser where the registered representative is affiliated.

A failure to supervise can allow fraud to occur, as well as misappropriation, unsuitable investment recommendations, unauthorized trading, selling away, churning, misrepresentations and omissions, and more. If you are a Colorado investor who suspects you may have been a victim of a failure to supervise, contact our Denver securities law offices today.

What Does Proper Broker-Dealer Supervision Involve?

Under FINRA Rule 3110, a brokerage firm must set up and maintain a supervisory system to properly oversee the activities of its associated persons. This system must be reasonably designed so as to be in compliance with Financial Industry Regulatory Authority rules, securities laws, and regulations.

There must be written supervisory procedures (WSPs) in place that deal with not just the associated persons’ activities, but also the overseeing of supervisory staff, the review of customer disputes, firm communications and correspondence, and investment banking and securities businesses.

WSPs need to detail who is in charge of reviewing each of these matters, what supervisory activities will be conducted, review frequency, and documentation protocols. There should also be requirements for designating and registering offices of supervisory jurisdictions and branch offices.

FINRA Rule 3120 has to do with supervisory control policies and procedures to test and confirm a firm’s supervisory procedures. FINRA Rule 3130 involves yearly compliance and supervisory process certifications.

Unfortunately, despite these requirements, lax supervision continues to be a problem. Broker-dealers may disregard or ignore red flags indicating something is amiss in customers’ accounts. They may even neglect to have the proper supervisory procedures in place.

Even if the brokerage firm had no idea that anything fraudulent or negligent was going on in a customer’s account, you still may be able to sue them for your losses. A recent, high-profile example of what can happen is the $110 Horizon Private Equity Scam run by then Oppenheimer broker John Woods.

While Oppenheimer was not involved in Woods’ scheme, he was a registered representative of theirs at the time of his investment fraud. Because of its alleged supervisory negligence of Woods and his activities, the broker-dealer has paid tens of millions of dollars in settlements to investors who were harmed.

How Can Our Colorado Failure To Supervise Lawyers Help?

The first step is to contact us today to request your free, initial case consultation. Our Denver, CO broker-dealer failure supervise attorneys know how to help you evaluate the cause of your losses and whether you should pursue damages. But first, it is important that you DO NOT try to resolve this case directly with the firm and without trusted Colorado securities representation on your side.

Most brokerage firms would rather deny wrongdoing or even blame the customer than admit to a failure to supervise or some other type of financial advisor misconduct or negligence. Approaching them directly might jeopardize your case in the long run.

When you work with Shepherd Smith Edwards and Kantas Colorado Failure To Supervise Lawyers, you can trust that you will receive quality securities representation and personalized attention that is backed by our more than 100 years of collective experience in the securities law and the securities industry.

Our Colorado failure to supervise lawyers genuinely care about our clients. Should we agree to work together, you will have all of our failures to supervise attorneys advocating for you. Not only that, but everyone at the firm will be involved in your case as we make sure to protect your legal rights. Over the decades, more than 90% of our clients have received full or partial financial recovery.

Contact Our Colorado Failure To Supervise Lawyers

Call (720) 439-2827 or (800) 259-9010 or fill out this firm.

1700 Lincoln St #2710
Denver, CO 80203