Broker-Dealer Litigation and Arbitration

The attorneys at Sherman Wells regularly represent broker-dealers and their employees in a wide range of matters, including sales practice arbitrations, employment disputes, securities-backed lending, anti-money laundering, asset forfeiture, subpoenas, levies and garnishments and regulatory enforcement defense. We routinely appear before the Financial Industry Regulatory Authority (FINRA) and federal and state courts throughout the country.

 
AREAS OF EXPERIENCEExpand All
Customer Disputes

Our attorneys routinely defend brokerage firms in both pre-arbitration customer disputes and sales practice arbitrations involving claims of unsuitability, churning, unauthorized trading, failure to follow instructions, improper margin conduct, failure to supervise, fraud and breach of fiduciary duty. We also regularly handle claims of misrepresentation and omission brought under Section 10(b) of the Securities Exchange Act and Sections 11 and 12 of the Securities Act of 1933.

Employment Disputes

The firm’s attorneys have represented broker-dealers in a broad array of employment matters. We are experienced in handling promissory note litigation against former employees, claims for violation of non-solicitation agreements and raiding and recruiting disputes. We also have successfully defended broker-dealers against claims for wrongful termination, misrepresentation, discrimination, breach of contract, lack of support and Form U5 defamation. Our attorneys have handled numerous expungement proceedings before FINRA.

Securities-Backed Lending

Sherman Wells attorneys regularly represent broker-dealers and their affiliates in disputes arising from margin loans and other securities-backed loans. We have recovered millions of dollars in defaulted securities-backed loans for our clients and have successfully defended them against allegations of fraud in the inducement, misrepresentation, wrongful forced liquidations and other lender liability claims.

Anti-Money Laundering and Asset Forfeiture

Our attorneys have handled a broad range of money laundering investigations and are experienced in responding to state and federal authorities concerning complex fraudulent schemes. We also have extensive experience handling civil and criminal asset forfeiture proceedings, particularly where forfeiture is being sought of assets that are pledged as collateral for securities-backed loans. We regularly work with government agencies, including the U.S. Attorney’s Office, the Office of Foreign Assets Control (OFAC) and state District Attorneys’ offices, to favorably resolve asset seizures and forfeitures for our clients.

Subpoenas, Levies and Garnishments

The firm’s attorneys have handled subpoenas, levies and garnishments throughout the country for our broker-dealer clients. We regularly provide counseling with regard to inquiries from the Internal Revenue Service, complying with liquidation and turnover orders and producing documents pursuant to third-party subpoenas. We also have considerable experience in bringing interpleader actions in state and federal courts on behalf of broker-dealers.

Regulatory Enforcement Defense

Our attorneys have extensive experience handling regulatory enforcement matters. We have represented broker-dealers and their employees in connection with numerous regulatory investigations and enforcement and disciplinary proceedings conducted by the SEC, various state securities regulators and state attorneys general.