New Mexico has a large population of seniors, making it a hotbed for elder financial abuse. According to the FBI, older New Mexicans lost $17 million in 2023 through online scams and fraud.
If you’ve experienced losses on your investments due to fraud, misconduct, or exploitation, a New Mexico securities fraud attorney can help. Most brokerage firms require investors to resolve disputes through FINRA arbitration, and a Kurta Law attorney can help guide you through the process.
New Mexico Securities Law
The Securities Division of the New Mexico Regulation & Licensing Department investigates securities fraud and licenses brokers and investment advisers in the state.
Brokers and investment advisers can lose their licenses if they engage in fraudulent or dishonest conduct. This can range from failing to fully inform you about an investment’s fees to full-on investment scams.
New Mexico Securities Laws
The New Mexico Uniform Securities Act is the primary form of protection for investors in New Mexico. It defines securities fraud, registration requirements for brokers, and the requirements for the registration of securities, including what types of investments are exempt from registration.
It’s also a blue sky law, a state regulation that codifies the protections of federal securities laws. Blue sky laws allow regulators to better address fraud on a state level.
Older investors in New Mexico get another layer of protection from the Protecting Vulnerable Adults from Financial Exploitation Act. Under this law, brokers and investment advisers who believe that a vulnerable adult is or may be financially exploited must report what they know to state regulators.
What Types of Cases Does a New Mexico Investment Fraud Lawyer Handle?
Broker misconduct can take many forms, but some of the most common types that New Mexico securities fraud lawyers deal with include:
- Excessive trading activity (also known as churning), which generates trading fees and commissions that can wipe out investors’ profits.
- Recommending investments that are unsuitable for the investor’s financial needs, or that the broker lacks a reasonable basis to recommend.
- Executing trades without being granted discretionary authority by the client or executing trades on their behalf without authorization.
- Misrepresentations or omissions of facts related to an investment, such as its fees, features, and potential returns.
These types of misconduct aren’t just violations of New Mexico securities laws—they also violate the rules of the Financial Industry Regulatory Authority (FINRA), which regulates the securities industry.
New Mexico securities fraud attorneys also tackle common fraudulent schemes, such as:
- Ponzi schemes: One of the most famous examples of a scam, Ponzi schemes rely on new investors buying in so the scammer can use their money to pay off earlier investors. They tend to promise unrealistic (or guaranteed) returns, and don’t disclose very much about the strategy that supposedly generates all that money.
- Pump and dump scams: This scam artificially inflates the price of a security (often a cryptocurrency or stock), then leaves investors with a worthless investment when the scammers sell all their holdings and tank the price.
- Insider trading: When brokers or other insiders with non-public information about a company use that information to get a leg up on other investors, that’s insider trading.
New Mexico Elder Financial Abuse
In 2020, people over the age of 65 made up 18% of New Mexico’s population. Because older people are at higher risk of financial exploitation, the New Mexico Securities Division offers some advice to avoid getting scammed:
- Be skeptical about advertisements for investment opportunities that offer limited information or promise a quick turnaround.
- Resist high-pressure sales tactics by refusing to make an immediate decision on an investment—take your time and do your research.
- Contact the Securities Division to check if an issuer or broker is properly registered if you have suspicions. You can also look up a broker’s regulatory history on BrokerCheck, a database maintained by FINRA.
The Securities Division also participates in the Elder Investment Fraud and Financial Exploitation Prevention Program, a multi-organizational program which trains medical professionals who treat seniors to identify signs of financial exploitation and report them.
Pig Butchering Scams
Seniors may also be more likely to fall victim to “pig butchering” scams, especially if they have a small social circle. In this scam, a seemingly friendly stranger slowly builds a relationship before “butchering” the victim’s finances by requesting they transfer money for a supposed investment.
Securities Law Enforcement in New Mexico
The New Mexico Regulation & Licensing Department, Securities Division reports on its recent enforcement actions on its website.
Edward Jones
On December 20, 2024, the Securities Division entered into a consent agreement with Edward D. Jones & Co., L.P.
In it, the Securities Division alleged that the firm lacked supervisory procedures reasonably designed to identify that certain investors who moved from brokerage to Guided Solutions advisory accounts did not have the front end loads of their Class A mutual fund shares fully offset by prorated advisory fees as the investors expected.
Edward D. Jones & Co. consented to an administrative fine of $320,754.72.
Raymond James & Associates
New Mexico participated in a multi-state action resulting in a consent order with Raymond James & Associates and Raymond James Financial Services on March 29, 2024.
The states involved alleged that these firms charged unreasonable commissions on low-principal equity transactions, amounting to more than $8.25 million in excess commissions.
The firms consented to pay restitution of $8,383,167.46 plus interest of 6% to affected customers. Of this amount, $53,951.01 plus interest was designated for New Mexico investors. The firms also consented to fines and other sanctions of $4.2 million.
Why Do I Need a Securities Fraud Lawyer in New Mexico?
When you file a dispute, you can expect the firm to bring their own legal representation. You want an experienced securities attorney who understands the ins and outs of FINRA arbitration to take on your case and make sure you get the best possible settlement.
Who Are the New Mexico New Mexico Securities Fraud Lawyers at Kurta Law?
Kurta Law is a national law firm with headquarters in New York City. Our experienced securities attorneys regularly secure settlements for New Mexico residents.
If you have questions before proceeding with your case, contact us for a free case evaluation at (877) 600-0098 or info@kurtalawfirm.com.