ISRAELS & NEUMAN, PLC – Chicago, Illinois Securities Arbitration and Investment Fraud Attorneys

Sections 12 and 13 of the Illinois Securities Law of 1953

Israels & Neuman are securities arbitration and investment fraud attorneys that represent Illinois residents who have been wronged by their stockbrokers and brokerage firms.  Attorneys Aaron Israels and David Neuman are both licensed to practice law in Illinois.  Our attorneys have previously represented over 100 Illinois and Chicago area investors who have been the victims of unsuitable investment recommendations, fraud, and theft, including the following:

  1. Represented over 40 investors who were victims of a Ponzi scheme operated by Sterling-Rock Falls, Illinois area financial advisor Nevin Gillette;
  2. Represented investors who lost money in a hedge fun ran by investment advisors in Lake Forest;
  3. Represented a Plainfield resident who lost money after her financial advisor suggested that she take out a home equity loan and invest the money in the stock market;
  4. Represented dozens of victims of a Ponzi scheme operated by Aurora and Sugar Grove financial advisor Algird Norkus;
  5. Represented a number of Chicago area residents of lost money in the Founding Partners Stable Value Fund, which was alleged to be a fraudulent scheme;
  6. Represented a Will County family who lost money after being recommended to invest using insurance premium financing;
  7. Represented a family near the Bloomington-Normal area who lost money in several Ponzi schemes, including Medical Capital, DBSI, and Provident Royalties;
  8. Represented an elderly investor from the Peoria area who lost money in Resort Holdings International, a Ponzi scheme involving time shares in Mexico and Panama;
  9. Represented a victim of a fraudulent scheme ran by Chicago area financial advisor George Stokas; and
  10. Represented a number of Chicago area investors who were the victims of a Ponzi scheme perpetrated by former LPL Financial advisor Arthur Lin.

Illinois residents are protected by the provisions of the Illinois Securities Law of 1953.  This Law provides for the regulation of the sale of securities to Illinois residents and to Illinois financial advisors and stockbrokers.  Additionally, the Illinois Securities Department, with offices in Springfield and Chicago, was created to help enforce the provisions of the Illinois Securities Law.

Section 12 of the Illinois Securities Law provides for liability if a financial advisor, stockbroker, or investment advisor misrepresents the risks of an investment to you.  In particular, this statute provides that:

Sec. 12. Violation. It shall be a violation of the provisions of this Act for any person:

  1. To engage in any transaction, practice or course of business in connection with the sale or purchase of securities which works or tends to work a fraud or deceit upon the purchaser or seller thereof.
  2. To obtain money or property through the sale of securities by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.

* * *

  1. To employ any device, scheme or artifice to defraud in connection with the sale or purchase of any security, directly, or indirectly.

See 815 ILCS 5/12.  The Illinois Securities Law of 1953 is also supplemented by the securities regulations implemented under Part 130.  The Illinois Securities Law further provides civil remedies in the event that the Act is violated, including 10% annual interest, reasonable attorneys’ fees, and costs.  See 815 ILCS 5/13.

If your financial advisor or stockbroker makes misrepresentations to you when selling securities, he or she may be liable for your losses.  In addition, the brokerage firm that your advisor works for may also be liable.

Israels & Neuman PLC is a securities arbitration and investment fraud law firm with offices in Washington, Oregon, Colorado, and Michigan.  We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Illinois, and in Chicago, Aurora, Rockford, Naperville, Joliet, Peoria, Champaign, Urbana, Springfield, Arlington Heights, St. Charles, Geneva, Schaumburg, Bartlett, Barrington, Elgin, Waukegan, Palatine, Skokie, Sterling, Rock Falls, Rock Island, Moline, Plainfield, and others.

Attorney David Neuman was born in Berwyn, Illinois and grew up in the western suburbs in Addison.  He earned a degree in Finance at the University of Illinois in Urbana-Champaign before earning his law degree at Northern Illinois University in DeKalb, Illinois.  Mr. Neuman also previously worked for a number of Chicago area law firms, including firms in St. Charles, Geneva, Chicago, and Barrington.  He also previously lived in the Ravenswood neighborhood on the north side of Chicago.

Attorney Aaron Israels was born in western Michigan and is also licensed to practice law in the State of Illinois.  He has represented a number of investors in Illinois state courts.

Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.

Click to view:  Illinois Securities Law of 1953

If you are a resident of Illinois and have lost money with your financial advisor or investment advisor, please CONTACT ISRAELS & NEUMAN at 206-795-5798 for a free evaluation of your case.