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California Securities Law Questions & Answers
1 Answer | Asked in Business Formation, Business Law and Securities Law for California on
Q: Starting an equities investment club in California. Will create a CA LLC and an online brokerage account for trading.

We are going to pool our money into a single brokerage account. The account will be managed by one person who does not have a securities license. Is this ok?

Also, the members of the club would like to compensate the person who will be managing the account, keeping the records, etc. Is... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on May 14, 2020

Unless everything you are planning to do can be fit under the statutory heading of "Investment Clubs" (assuming California allows them) you and the trader who is making money are looking for big-time trouble.

1 Answer | Asked in Employment Discrimination and Securities Law for California on
Q: I understand that If a private company uses a unlicensed agent to raise assets, that's an SEC violation.

However, is there anything in it for me to turn the company in?

The company has gone from zero value to $85 million in value and used me, a misclassified independent consultant, to raise money for them. I am going after the company based on being misclassified. But, could I receive... View More

Louis George Fazzi
Louis George Fazzi
answered on Mar 24, 2020

In my opinion, there is nothing in it for you. The whistleblower statute was created as an incentive for people to report fraud on the government, or waste of government assets or expenditures. I don’t see that in this situation.

1 Answer | Asked in Securities Law for California on
Q: I am an interested party: 19CV1628 H Securities and Exchange Commission v. Champion-Cain et al How do I pursue recovery?

I became aware of the lawsuit just today when calling to office to check on my $250,000 investment. I was never informed of this proceeding, and not listed as an interested party on documentation. It is in receivership. What do you suggest I do as next steps? Please advise, thank you.

Steve A. Buchwalter
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answered on Sep 30, 2019

Contact a lawyer. You may want to notify the receiver. You may have claims against the managers and those who sold it to you. You should act sooner rather than later.

2 Answers | Asked in Securities Law for California on
Q: I was accused of shoplifting and I saw the security guard placing the "stolen" item underneath my car.

As I was on my way out from the store, opening my car, a security guard stops me and asks me about the jewelry. I tell him I don't have it and that I left them inside the fitting room. I offered to go back inside with him to show him exactly where I placed it and he declines saying "I am... View More

Deanna  Besbekos-LaPage
Deanna Besbekos-LaPage
answered on May 20, 2019

This is not a securities law question. I would post under a different category.

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Q: Im having issuese with pay and placement with the security company called securitas in los angeles

My paychecks are short , missing or different pay rate. Also i was promise a bouns ... i now have no work beside i believe i asked about my bouns. Hr and their scheduling are no help, they just sent me in circles.

Ronald Mahurin
Ronald Mahurin
answered on Jan 21, 2019

Unfortunately this is not a workers comp question. I tried to find a way to flag the questions, but there were no options. You need to post in employment law. There is no remedy in workers comp. for what you have described.

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1 Answer | Asked in Securities Law for California on
Q: Would this business require a money transmitter license or be exempt?

Based on FinCen determinations in FIN-2014-R004, R005 and R006, would this business process be considered an exemption from being a money transmitter?

Consumers that want to purchase products/services using cryptocurrency can pay us to make the purchase for them. They identify what they... View More

Alan Abergel
Alan Abergel
answered on Jan 11, 2019

You will need to retain an attorney to review your business model to determine if it is subject to FINCEN registration and regulation and/or other financial regulation. You may also be required to obtain a money transmission license from each state or country in which you conduct business and/or... View More

2 Answers | Asked in Securities Law for California on
Q: I know that there are federal securities laws, but are there any that are state-specific to California that differ from

the federal ones?

Steve A. Buchwalter
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answered on Dec 11, 2018

Yes they do and they are stronger than the federal laws. They start at Corporations Code 25000

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2 Answers | Asked in Securities Law for California on
Q: My broker disappeared after I discovered fraudulent misrepresentations associated with my account. Who do I sue if I

don't know his current whereabouts?

Steve A. Buchwalter
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answered on Nov 20, 2018

If there is wrongdoing, the brokerage firm he was associated with would be responsible.

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1 Answer | Asked in Securities Law for California on
Q: What do securities lawyers do exactly?
Tim Akpinar
Tim Akpinar
answered on Nov 10, 2018

They work with matters involving stocks, bonds, and other financial instruments.

Tim Akpinar

1 Answer | Asked in Securities Law for California on
Q: Can you explain what a "triggering event" is? I keep seeing the term.
T. J. Jesky
T. J. Jesky
answered on Oct 20, 2018

A triggering event refers to an occurrence that, once breached or met, it causes another event to take place. Triggering events are written into contracts to prevent or ensure that if something happens the next event will happen.

For example, you want to buy a newspaper at a news stand....
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1 Answer | Asked in Securities Law for California on
Q: Options were about to vest but the company went into bankruptcy, what do I do?
Steve A. Buchwalter
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answered on Sep 14, 2018

If your options are in the money, you may want to exercise them. If a stockbroker recommended the options without warning you about the companies financial condition, you may be able to sue. You'll need to talk to an attorney.

www.securitieslaw-attorney.com

1 Answer | Asked in Securities Law for California on
Q: We'd like to issue shares in our company - do all the officers need to sign off?
T. J. Jesky
T. J. Jesky
answered on Sep 12, 2018

When a Company issues shares, the "corporate formally" to do so, is a Board Resolution. In other words, it is the Board of Directors through a Board Resolution that authorizes the issuance of shares from the Corporate Treasury. It is not the officers but the Board of Directors who have... View More

1 Answer | Asked in Securities Law for California on
Q: What's the very first thing I should do if I have believe I have a securities claim?
Steve A. Buchwalter
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answered on Jul 17, 2018

Gather all your documents and put them is a safe place. Call an attorney to go over your case. Any attorney you talk to may ask you to write up a narrative (your story) as to what happened. It may be a good idea to start on that.

1 Answer | Asked in Tax Law and Securities Law for California on
Q: I am a FINRA registered representative with several securities licenses and had a tax lien.

A tax lien was placed on my assets, then released, without my knowledge. My new employer wants me to have this recorded on my U4. Is there any way I can keep it off my U4?

Steve A. Buchwalter
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answered on Apr 25, 2018

Yes. Pursuant to question 14m on the form U4, only unsatisfied liens need to be reported.

1 Answer | Asked in Securities Law for California on
Q: How does the SEC deal with people who want to cash out millions of dollars they earned via Bitcoin? Is that regulated at

all?

Steve A. Buchwalter
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answered on Apr 25, 2018

The SEC does not regulate bitcoin. As far as I know, nobody does.

1 Answer | Asked in Securities Law for California on
Q: If I ask my broker if he's been previously sued for securities fraud, must he tell me the truth?
Steve A. Buchwalter
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answered on Apr 25, 2018

Yes. They are required to disclose such things. You can check for yourself if you go to www.finra.org and type your broker's name in the "Brokercheck" box.

2 Answers | Asked in Securities Law for California on
Q: What should I do if I believe I have a valid securities fraud claim, and my broker has gone totally MIA?
Steve A. Buchwalter
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answered on Apr 25, 2018

You can go after his firm. If there is a fraud, the broker's firm would be responsible.

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1 Answer | Asked in Criminal Law, Divorce and Securities Law for California on
Q: i was awarded half of my wife's 403.b in our divorce. Now she won't sign the bank papers to do the split. What can i do?

She took out and defaulted on 4 loans using the account as collateral so the bank is wanting to pay off the loans and then split the remainder.

Dale S. Gribow
Dale S. Gribow
answered on Apr 2, 2018

need more facts

the first thing i would do is to contact the lawyer who worked on the divorce.

she appears to be in default of a court order.

you may have to go back to court to ask court to find her in contempt

if you did not retain a family law atty do so as that is not my area of law.

1 Answer | Asked in Business Law and Securities Law for California on
Q: what differences are there between NY and CA laws governing VCs ?

specifically in terms of what they can or cannot do with startup capital.

Jonathan R. Roth
Jonathan R. Roth
answered on Mar 22, 2018

More information is needed to answer your question. Most VC firms manage funds they create using investors money. In creating those funds they have to comply with SEC rules as well as state rules to the extent they apply. As to the use of the funds that is dictated by the terms of the fund and the... View More

1 Answer | Asked in Securities Law and Estate Planning for California on
Q: I am 100 primary beneficiary on several annuities and stock funds. Is it complicated to collect in event of death?

I have a brother in prison who is trying to manipulate father. By drawing up his own version of will and presenting it to him

Richard Samuel Price
Richard Samuel Price
answered on Feb 2, 2018

When a beneficiary is named on a financial account, those assets are transferred to the beneficiary when the beneficiary presents a death certificate. A will cannot change a beneficiary designation.

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