Entrepreneurs seeking to raise capital for their ventures will often pay “finders” a fee to source capital successfully from prospective investors. Oftentimes, these finders are not registered securities broker-dealers and are unschooled in the fair and equitable principles of the securities trade. Because their fee is based on the success of the securities sale, the finder’s approach can be aggressive and even cross the line of acceptable conduct. In those cases, it is not unusual for investors to lose their entire investment. For the aggrieved investor, they may seek to salvage their investment from the fact that the finder was an unlicensed securities broker. A great number of brokers, investment advisers, and sometimes even their attorneys do not realize that they are operating in violation of securities laws. Simply put, they are unlicensed securities brokers who could be liable to investors to whom they sold securities.
At Sanford Heisler Sharp the lawyers within our Financial Services Litigation Group are well versed in this area of the law and will help clients seek justice from those who have violated the securities laws.