Basic Investors Complaint & Legal Claims Center

Do you have a claim against Basic Investors?

Important Information You Should Know:

Basic Investors is a securities brokerage firm which is licensed by FINRA.
Firms licensed through the Financial Industry Regulatory Authority, formerly the National Association of Securities Dealers (NASD), must comply with securities regulations and federal and state securities laws. When these firms violate regulations or laws they can face actions by regulators or by federal or state criminal prosecutors.

Very few “securities police” have the impossible duty to attempt to govern billions of dollars in transactions each year, handled by hundreds of thousands of salespersons nationwide at thousands of securities firms. Approximately 660,000 registered salespersons at 5,300 securities firms handle hundreds of millions of transactions annually for over 60 million investors. It is impossible for securities regulators to police this activity.

Securities regulators and officials do not often recover losses for victims of securities fraud. Just as police give tickets and motorists usually hire attorneys to recover damages, victims of securities fraud hire attorneys to recover their losses. As well, claims against brokerage firms including Basic Investors, can be for securities fraud, or for breach of duty, breach of contract, negligence and other claims not covered by securities regulations or statutes.

Claims against brokerage firms are almost always determined in securities arbitration.
When an account is opened at securities firms including Basic Investors, investors sign documents which include agreements to arbitrate any dispute. The U.S. Supreme Court decided in 1987 that securities arbitration agreements are enforceable. Arbitration is a private proceeding which takes the place of court actions. Appeals of arbitration decisions to court are very limited and usually unsuccessful.

Investors represented by an attorney in securities arbitration are much more successful. Statistics prove that investors who file claims with the assistance of an attorney recover twice as often as those not represented. Only a small percentage of lawyers have ever represented an investor in arbitration and very few law firms nationwide have extensive experience with securities arbitration cases.

To learn whether you can recover losses through a claim against Basic Investors
Contact Shepherd Smith Edwards & Kantas LTD LLP law firm for a free consultation with an attorney.

About Shepherd Smith Edwards & Kantas LTD LLP Law Firm:

Our law firm represents institutional and individual investors nationwide who have lost a substantial portion of their retirement or other assets. Our attorneys and staff have more than 100 years of combined experience in the securities industry and in securities law. Several of our lawyers and staff members served for years as a Vice President or Compliance Officer of major brokerage firms.

Each lawyer and staff person at our firm is devoted to assisting investors to recover losses caused by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. We have handled thousands of cases against hundreds of large and small investment firms, including claims against firms such as Basic Investors.


FINRA Reports

Reporting Source: Regulator
Allegations: SEC RULES 11AC1-4, 15C2-11, NASD RULES 2110, 3010, 4632, 4642, 6620,
6740 - BASIC INVESTORS, INC. FAILED TO DISPLAY IMMEDIATELY
CUSTOMER LIMIT ORDERS IN LISTED SECURITIES IN ITS PUBLIC
QUOTATION, WHEN EACH SUCH ORDER WAS AT A PRICE THAT WOULD
HAVE IMPROVED THE FIRM'S BID OR OFFER IN EACH SUCH SECURITY; OR
WHEN THE ORDER WAS PRICED EQUAL TO THE FIRM'S BID OR OFFER
AND THE NATIONAL BEST BID OR OFFER FOR EACH SUCH SECURITY, AND
THE SIZE OF THE ORDER REPRESENTED MORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZE ASSOCIATED WITH THE FIRM'S BID OR
OFFER IN EACH SUCH SECURITY; THE FIRM INCORRECTLY REPORTED TO
THE NASDAQ MARKET CENTER (NMC) THE SECOND LEG OF "RISKLESS"
PRINCIPAL TRANSCTION(S) IN NNM SECURITIES; "RISKLESS PRINCIPAL
TRANSACTIONS IN SMALLCAP SECURITIES; "RISKLESS" PRINCIPAL
TRANSACTION(S) IN OTC SECURITIES BECAUSE IT INCORRECTLY
DESIGNATED THE CAPACITY OF SUCH TRANSACTION(S) AS "PRINCIPAL."
THE FIRM PUBLISHED QUOTATIONS FOR OTC EQUITY SECURITIES OR
NON-EXCHANGE-LISTED SECURITIES OR, DIRECTLY OR INDIRECTLY,
SUBMITTED SUCH QUOTATIONS FOR PUBLICATION IN A QUOTATION
MEDIUM, THE PINK SHEETS, AND DID NOT HAVE IN ITS RECORDS THE
DOCUMENTATION REQUIRED BY SEC RULE 15C2-11(A)("PARAGRAPH (A)
INFORMATION"); DID NOT HAVE A REASONABLE BASIS UNDER THE
CIRCUMSTANCES FOR BELIEVING THE PARAGRAPH(A) INFORMATION WAS
ACCURATE IN ALL MATERIAL ASPECTS; AND DID NOT HAVE A
REASONABLE BASIS UNDER THE CIRCUMSTANCES FOR BELIEVING THAT
THE SOURCES OF THE PARAGRAPH (A) INFORMATION WERE RELIABLE.
THE QUOTATIONS DID NOT REPRESENT A CUSTOMER'S INDICATION OF
UNSOLICITED INTEREST. FOR EACH OF THESE QUOTATIONS, THE FIRM
FAILED TO FILE A FORM 211 WITH NASD AT LEAST THREE BUSINESS DAYS
BEFORE ITS QUOTATIONS WERE PUBLISHED OR DISPLAYED IN A
QUOTATION MEDIUM. [CONTINUED IN COMMENTS.]
Date Initiated: 05/03/2007
Docket/Case Number: 20050003265-01
Resolution Date: 05/03/2007
Sanctions Ordered: Censure
Monetary/Fine $25,000.00
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE, THE FIRM IS CENSURED, FINED $25,000 AND REQUIRED TO
REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES REGARDING
COMPLIANCE WITH DISCLOSURE OF ORDER EXECUTION INFORMATION,
RISKLESS PRINCIPAL TRADE REPORTING, SALES IN THRESHOLD
SECURITIES, BOOKS AND RECORDS, THE QUOTATION OF
NON-EXCHANGE-LISTED SECURITIES, AND BID TEST COMPLIANCE
REQUIREMENTS WITHIN 30 BUSINESS DAYS OF ACCEPTANCE OF THIS
AWC BY THE NAC.
Summary: THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION
REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE
SECURITIES LAWS, REGULATIONS, AND NASD RULES CONCERNING
COMPLIANCE WITH DISCLOSURE OF ORDER EXECUTION INFORMATION,
RISKLESS PRINCIPAL TRADE REPORTING, SALES IN THRESHOLD
SECURITIES, BOOKS AND RECORDS, AND THE QUOTATION OF
NON-EXCHANGE-LISTED SECURITIES. THE FIRM FAILED TO PROVIDE
DOCUMENTARY EVIDENCE THAT IT PERFORMED THE SUPERVISORY
REVIEWS SET FORTH IN ITS WRITTEN SUPERVISORY PROCEDURES
CONCERNING THE REQUREMENTS OF BID TEST COMPLIANCE DURING A
MONTH.


Initiated By: NASD
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated: 04/22/2005
Docket/Case Number: CLG050045
Principal Product Type: Equity - OTC
Other Product Type(s):
Allegations: NASD RULE 2110; NASD MARKET PLACE RULE 6620(A) - RESPONDENT
FIRM ENGAGED IN A PATTERN OR PRACTICE OF LATE REPORTING
WITHOUT EXCEPTIONAL CIRCUMSTANCES.
Current Status: Final
Resolution Date: 04/22/2005
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered: Censure
Monetary/Fine $5,000.00
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT
FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY
OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $5,000.

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