what does a securities lawyer do

This article is from Steven Raiser, a premier Los Angeles and NYC Criminal defense lawyer. Securities law has generated immense interest, in recent years. The past decade, has seen it’s fair share of financial scandals – which has generated interest on the consumer side – on what securities law is, and how it helps prevent significant economic losses. The most well known collapse, is that of the financials market in 2008. In 2001, Enron, collapsed – which was triggered by deceptive accounting practices – which overvalued the company, and resulted in inflated stock prices. In another example, MF Global, who was a commodities brokerage firm, misappropriated close to $1 billion of consumer funds in order to fund it’s operations. It then declared bankruptcy in 2011.

These are all examples of situations, where publicly traded companies – broke the law, to the detriment of consumers. In situations like this, there are federal and state laws in place – designed to protect shareholders and investors. In MF Global’s case – the government went into play – and was able to recover $1.2 billion from company assets as a form restitution. 

Securities fraud can cause a huge amount of harm. As a result, it’s become more important – and more relevant, to the every day consumer. Securities lawyers, are those who work and deal with securities law. A securities lawyer is someone who specializes in the complex laws + regulations that pertain to financial investments and publicly trade companies. Securities laws, are complex, and ever changing. Typically, when a consumer loses money – they will need the help of a securities lawyer in order to to help recovery any losses – that occur due to wrongdoing. In addition, securities attorneys can help you when it comes to planning your investments – in a safe manner. 

If you suspect wrongdoing, there are a number of ways you can get help. You can visit the SEC’s Enforcement Tips and Complaints section and and submit a complaint. Alternatively, you should Google – to see if there are any on-going class action lawsuits that are relevant to your complaint. 

What is securities law

Securities law is an area of law that pertains to rules and regulations which govern financial instruments such as: stocks, mutual funds, and bonds. The point of securities fraud is to prevent fraud, insider trading, or other forms of unfair market manipulation. The point of securities laws and regulations it provide transparency. 


Securities lawyers play a very important role in protecting investments. As you’re planning your investments, a securities attorney can assist you in researching the history, and health, of any companies you’re looking at. In addition, a securities lawyer can help you by reporting, or advising, on the background of any broker you’re looking to work with. 

  • Securities lawyers can determine whether a financial instrument you’re interested in investing into is suitable
  • Securities lawyers can hlep you find all the important disclosed information regarding any potential investments

In addition, a securities lawyer can advise you on the most common forms of fraud, or mismanagement of investments, and can explain to you how to be careful and watchful for any fraud. Securities lawyers can advise you on the types of claims that are possible, for those who suffer losses that can be attributed to wrongful conduct. Examples include:

  • breach of fiduciary duty
  • conflict of interest
  • churning – a form of increasing broker fees
  • failure to supervise
  • malpractice
  • market manipulation
  • misrepresentation
  • risky investments
  • and more

More importantly, a Los Angeles securities attorneys can represent you in any litigation that arises as a result of your investments. That means – class action lawsuits, lawsuits against a broker, and more. The one thing you need to remember, is that many broker agreements have arbitration clauses, which limit your ability to pursue an against the broker in court. As a result, it’s extremely helpful and important to have a securities lawyer review any broker agreement – before signing it. 

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