Solutions and Justice
At the Hutchinson Law Firm we have helped a wide range of clients in securities disputes. If you have suffered significant stock and investment losses due to the actions of a broker, call our Denver securities law attorney. We offer free initial consultations to discuss breach of fiduciary duty, stock fraud, stock churning, and unsuitable investments. Contact a Colorado securities lawyer.
The following case summaries offer examples of some of the matters we handle:
Investor devastated by incomplete disclosure
An investor bought a large block in a hot Initial Public Offering ("IPO") both when it first came out and in the months that followed. About 8 months after the IPO, the company held an earnings call and announced it had an inventory glut, which indicated sales had not progressed according to plan, adding fuel to the fire about the company's product, problems the company steadfastly downplayed and denied. The company's stock plunged the following day when the market opened - it never recovered, and the investor lost several million dollars.
Suit was filed on the basis of insufficient disclosure, involing the federal and state securities and fraud laws.
The case was brought to a successful conclusion: it was settled for $5,250,000.
A retired schoolteacher in his 70’s
Although he was an intelligent man, he had no investment training or expertise. He relied on a long time friend for financial advice. This friend was affiliated with a large investment company and steered him into investing in several companies. The friend never told the client that he was actually the owner of the companies and that the businesses were performing poorly.
Over the years he invested about a $500,000, his entire retirement savings, into these companies. The investment advisor had him mortgage his house and put the equity into his companies. The advisor continually assured him his investments were sound.
Finally, the client's daughter became suspicious and began to ask questions. The friend and investment advisor provided few answers and was sketchy about the details of his financial dealings with her father. She pursued the matter and, after weeks of stalling, was eventually told that there was no money to repay her father.
They hired a general practice lawyer who pursued the matter for a year. After a series of unfruitful complaints to the FBI, the SEC, and the National Association of Securities Dealers, Inc. (“NASD”), they contacted the Hutchinson Law Firm.
We explained their options and made recommendations. Their broker’s agreement required that all disputes be handled in arbitration. We filed a claim for arbitration with the NASD. In the end we were able to recover most of the money.
A retired widow in her 70’s
When her husband died, he left her with a substantial amount of money. But he had never handled investments. A friend recommended an investment advisor from a large investment firm. He handled her investments for several years, and then began to “borrow” money from her. Later, he would claim that it was not he who was borrowing the money, but his companies!
Over the years, he managed to borrow everything she had, including the mortgage value of the house she lived in, and the house she owned next door. The advisor assured her that everything was fine. Linda became concerned. But she desperately wanted to believe him. When her finances decayed to the point that she couldn’t pay her bills, she pressed the advisor for her money. His answer? Talk to your kids, they can help you out!
She wondered how she would live without money. Would she need to go back to work?
We filed a claim on her behalf with the National Association of Security Dealers, Inc. (“NASD”). In arbitration we recovered about $500,000, nearly all she had lost.
Small business owners
Although they ran their own small business, they did not know how to make or manage investments. Like many people, they got a financial advisor to help them. After a period of time, their advisor put them into highly speculative deals, despite their account direction requesting only low risk investments. Not only were these unsuitable investments for them, the transactions were not even sanctioned by the investment company he worked with.
A referring attorney contacted the Hutchinson Law Firm. We agreed to take the case and filed for arbitration.
The advisor claimed that he merely introduced the couple to the principal of the investment firm; that he was just an innocent bystander. He seemed to think it would be a he said - she said case that he would easily win. After several days of arbitration, we completely destroyed his defense. We proved that, not only had he been directly and repeatedly involved, but that he had done the same thing to many other clients.
The arbitrators levied the maximum award against the broker. A large award was levied against his company.
How Can You Get Your Money Back?
If you have similar concerns about the handling of your investments, call or e-mail our law office. Contact a Colorado securities law attorney.
Free initial consultations • Flexible office hours
Nationwide representation
Hutchinson Law Firm LLC
1660 Lincoln Street
Lincoln Center - Suite 3150
Denver, Colorado 80264
Phone: 303-861-4242
Fax: 303-861-0787
Since 1973
Located in Denver, Colorado, the securities dispute arbitration lawyer and dispute resolution attorney at the Hutchinson Law Firm represent clients nationwide, with a focus on the Denver metro area, including the communities in and around Denver, Colorado Springs, Fort Collins, and Boulder.
