What-is-Securities-Fraud-and-How-a-Lawyer-Can-Help-You.jpg (2149×1159)If you own stocks, it’s critical that you know what’s involved in securities fraud. Also known as investment fraud or stock fraud, securities fraud is a deceiving practice in which sales or purchase decisions are made based on false information.

Perhaps you’re unfamiliar with the term, “securities fraud”, but you’ve heard of the downfall of the American energy company known as Enron. This disaster, which occurred in 2001, was partially the result of deceptive accounting practices in which the company was highly overrated, which led to stock prices becoming inflated. As a result, Enron investors and shareholders suffered significantly. When you don’t understand the common warnings signs of securities fraud, it’s easy to become a victim. Here’s what you need to know about securities fraud and how a securities fraud lawyer can help you.

Types of Securities Fraud

There are three main categories of securities fraud:

Misrepresentation/omission is a type of securities fraud that entails an investor being deliberately deceived, regarding information about a security. When brokers fail to notify clients of any risks linked with stocks, they’re failing in their responsibilities.

Overconcentration involves a broker intentionally not diversifying the portfolio of a client. For a client’s assets to be protected, it’s important for brokers to vary the variety of stocks that are bought. In other words overconcentration of an investment can be detrimental to clients. Fortunately, a good securities fraud attorney is able to help investors recover from this kind of loss.

Churning is a serious kind of securities fraud that’s designed for increasing a broker’s fees. This is a situation in which many stocks are traded that are not in the best interests of a client, such as selling stocks that don’t have large gains in an effort to show profits. It’s usually done by individual brokers even though, in some cases, it can involve an entire brokerage firm.

Unsuitability securities fraud is another serious type of securities fraud. This is when a broker consciously suggests stocks that are outside of the risk tolerance of a client. This type of securities fraud is particularly damaging to senior citizens because it can destroy a huge part of an older person’s retirement savings at the time when financial security is most needed.

Common Warnings Signs

It’s importance to recognize the common signs of securities fraud that could suggest that you may be a victim.

How a Securities Fraud Attorney Can Help You

Although these warning signs may not indicate that you’re victim of securities fraud, it’s still a good idea to promptly seek legal counsel from a highly qualified and experienced legal professional who knows how to properly manage investment fraud.

You don’t have to remain financially injured by securities fraud. If you feel you may be a victim, don’t hesitate to set up an appointment with Aiman-Smith & Marcy. Our high-performance, boutique law firm has a well-deserved reputation of getting rid of unethical business practices by large corporations on their employees, consumers and businesses. Please contact us and learn more about our wide range of legal services.

2 Responses

  1. One of my best childhood friends recently told me he's interested in going back to school to become an attorney, so I thought I would do some research on his potential careers and what he could end up doing if he does that. I had no idea that investment fraud can happen to people without them knowing if they aren't aware of the common signs to watch out for. It seems to me like the advice of an attorney would be really valuable to anyone trying to avoid this kind of issue. I'll be sure to remember this if my friend goes through with his law school idea! Thank you for the information.

  2. There are a ton of different ways that security fraud attorney can help your case and the article does a great job of bringing them all up. I particularly like that it goes over the fact that they can properly represent you in front of litigation. This can be incredibly helpful as trying to represent yourself can be a confusing nightmare.

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Lisseth Bayona


Education and Background

I am a Los Angeles native and daughter of Salvadorian immigrants. From an early age, my parents instilled the value of hard work and education in me and my two siblings. Their perseverance enabled each of us to graduate from college and earn professional degrees.

My interest and commitment to workers’ rights have roots in my parents’ experiences as undocumented workers in Los Angeles. Witnessing the challenges they faced inspired me to pursue a career where I can help individuals confronted with similar struggles. To help someone in those moments is very satisfying. I love connecting with people and learning about their stories. I believe that dignity in the workplace is a right of all workers, not a convenience or privilege reserved for employees of a certain race, gender, age, sexual orientation, or gender identity.

Legal Experience

I received my J.D. from the University of Southern California (USC) Gould School of Law. While there, I served as a judicial extern to the Honorable Patrick J. Walsh of the United States District Court for the Central District of California, where I drafted a criminal judicial opinion. Also, while at Gould, I served as an extern for the U.S. Attorney’s Office for the Central District of California. As a Criminal Division Extern, I had the opportunity to work closely with a trial team of Assistant U.S. Attorneys on a money laundering case which further sparked my interest in litigation.

Personal Interests

In my free time, I enjoy urban vegetable gardening, traveling, and spending time with my nephew and niece. I also love to spend time at San Onofre Beach learning to surf, although admittedly, I am not very good.



Hallie L. Von Rock

Attorney (SBN 233152)

Education and Background

I moved to the Bay Area from Washington after graduating high school. I had been accepted to UC Berkeley through a program where I could defer for two years while getting my California residency and attending community college, which was significant since I was paying for college on my own. I began working for Randall Aiman-Smith and Reed Marcy in 1996 as an office manager while taking night classes. My first foray into the legal world was soon after starting at the firm when I was ready to transfer to UC Berkeley. Rather than accepting my resident status, the Board of Regents took the position that California residency required a student to be in California “two calendar years.” Randall and Reed took up my case with the same verve as they helped their actual clients and I got the chance to comb through the UC Berkeley library to read their codes and regulations to support my position. In that experience, I learned what is was like to feel helpless against a big organization and then to have dedicated attorneys in my corner to take up my cause.

After a break to pursue my major in art history, I went to UC Hastings College of Law and continued working with Randall and Reed. Having worked together now for over 25 years, we have a unique ability to work collaboratively and finish each other’s sentences. I have strived throughout my career to make a difference in the lives of our clients. At the end of the day, if I am helping someone to get compensation for losses they suffered, then I know that all the work put into a case has been worth it.

Legal Experience

I have extensive experience in civil litigation and class action cases, including conducting discovery and depositions, calculating damages analysis, preparing motions for certification, writing appellate documents, and overseeing claims administration. We have handled several class actions against retailers where plaintiffs claimed they were forced to purchase clothing to wear to work and were not compensated for these purchases, including against Abercrombie & Fitch, Hugo Boss, Armani Exchange, Uniqlo, Dollar Tree, and Ross. Recently, I was trial counsel in a defamation claim against Bank of America on behalf of a former employee who claimed the Bank blacklisted her with future employers. The jury found Bank of America liable, including for punitive damages.

Personal Interests

Aiman-Smith & Marcy has sponsored me in the Boston Marathon and New York Marathon. When I race, I often wear a “Rockstar Ronan” shirt to support research for childhood cancer through The Ronan Thompson Foundation.


University of California, Berkeley, B.A., 1999

Hastings College of the Law, University of California, J.D., 2004

Randall Aiman-Smith

Abogado (SBN 124599)

Aiman-Smith & Marcy. Oakland consumer fraud attorneys.

Educación y antecedentes

Fui afortunado. A pesar de no haber terminado la escuela secundaria o la universidad, pude -aunque con mucho trabajo- ser admitido y sobresalir en una de las mejores escuelas de derecho del país: La Facultad de Derecho de la Universidad de Berkeley. Mientras estuve allí, tuve el privilegio de ser editor de la California Law Review y miembro del Moot Court Board, asesorando en la redacción de escritos y en la defensa de apelaciones a otros estudiantes. Después de salir de la escuela de derecho, en mis primeros años de práctica, enseñé la escritura legal y la defensa de apelación en la Universidad de California, Hastings College of the Law. También, a lo largo de los años, he sido presentador en eventos de educación legal continua.

Experiencia legal

He sido abogado durante 35 años. He dedicado mi práctica exclusivamente a representar a empleados, consumidores e inversores en los tribunales estatales y federales de primera instancia y en los tribunales de apelación. Me gusta ir a los tribunales por mis clientes y he llevado muchos casos con jurado en los tribunales estatales y federales.

¿Ejemplos? En 2010, fui la abogada principal, junto con los otros abogados del bufete, en el caso Williams v. Union Pacific Railroad donde, después de cuatro años de preparación, el bufete obtuvo un veredicto del jurado de 1.670.000 dólares para una empleada afroamericana. En Rivero v. Surdyka, fui el abogado principal en el juicio y la apelación de un caso de derechos civiles que duró 15 años, incluyendo un juicio completo y tres apelaciones al Noveno Circuito, concluyendo finalmente con una sentencia para los demandantes de más de 2.300.000 dólares. Estos casos ilustran el lema del bufete: compromiso – resultados. Hay que comprometerse con un caso, a veces durante mucho tiempo, para obtener el resultado que el cliente merece.

No siempre ganamos en el juicio. Cuando eso ocurre, el compromiso significa llevar el caso al siguiente nivel y recurrirlo. En el caso Rivero, antes mencionado, eso fue lo que ocurrió: el tribunal desestimó el caso -habíamos perdido- pero apelamos y conseguimos una victoria para nuestros clientes que mantuvimos a través de dos apelaciones más. Desde entonces, el bufete ha conseguido muchas victorias en apelación que reivindican los derechos de los empleados y los consumidores.

A lo largo de los años he sido abogado de los demandantes en numerosos casos individuales y acciones colectivas. Puede sonar cursi, o difícil de creer, pero después de todo este tiempo, y después de todas las grandes experiencias que he tenido, mi parte favorita de ser abogado es cuando consigo dar un cheque a mi cliente.



Facultad de Derecho, Universidad de California, Berkeley, J.D., 1986