Dallas Securities Attorneys

Practice Areas and Legal Definitions

Stockbroker Negligence:
All stockbrokers and other investment professionals have a legal duty to exercise due care in dealing with the investors they serve. The nature and extent of the duty is based upon state and federal securities laws, on the self-regulatory rules adopted by the National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE), and upon the level of competence usually and customarily maintained by stockbrokers in general. When a broker harms an investor by failing to meet that standard of care, the investor may decide to make a claim against the broker and the brokerage firm employing him or her for professional negligence.

Stockbroker negligence covers a wide range of activities, including:

• Failure to study a stock sufficiently to be able to make competent recommendations to the customer concerning it.
• Failure to inform the customer of known risks associated with the purchase and sale of a particular security.
• Failure to disclose or the misrepresentation of any fact material to a particular transaction.
• Engaging in speculative trading on the customer’s account.
• Failing to properly diversify the customer’s account.
• Failing to subordinate their own financial interests to those of the customer.

Variable Annuities Issues:
A variable annuity is a tax-deferred investment which includes an insurance policy designed to protect the investor from a loss of capital. Although vastly popular, variable annuities are known in financial circles for high fees and for significantly higher taxes than other investments. Except for the tiny fraction of the population for whom variable annuities may actually be a suitable investment, there are other forms of investment that typically produce a high yield at a much lower cost. Many stock market observers, noting the significantly higher sales commission on variable annuities than on other investment vehicles, suggest that the unusual popularity of this form of investment is that unscrupulous brokers are aggressively marketing them, often to the detriment of their clients.

Unsuitable Investment Issues:
Stock brokers have a legal duty to make only those investment recommendations that are consistent with the customer's risk tolerance, needs and investment objectives. An investment may be unsuitable if:

• The client does not have the financial ability to incur the risk associated with a particular investment.
• The investment is not in line with the client's financial needs.
• The client does not know or understand the risks associated with a particular investment.
• When a stockbroker breaches these duties, both the individual stockbroker and the securities brokerage firm employing the stockbroker are responsible for stockbroker negligence.

NASD and NYSE Arbitrations:
Although most business in the securities industry is completed without problems, disputes and controversies occasionally arise. For more than 125 years, the NYSE has used arbitration to resolve disputes between investors and brokers and the NASD operates the largest conflict resolution forum in the securities industry to assist in the resolution of monetary and business disputes between and among investors, securities firms and individual registered representatives. As an alternative to court litigation, arbitration enables a dispute to be resolved quickly and fairly by impartial arbitrators, who are knowledgeable and trained in the art of resolving controversy. In the case of NYSE and NASD dispute resolution, the arbitrators are also well-versed in all aspects of the brokerage business. When a customer chooses arbitration to resolve the dispute, however, this involves a waiver of the right to pursue the matter in court. Arbitration is final and binding.

Mutual Fund Losses:
A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments and/or other securities. Most mutual funds' investment portfolios are continually adjusted under the supervision of a professional manager, who forecasts the future performance of investments appropriate for the fund and chooses the ones which he or she believes will most closely match the fund's stated investment objective. A mutual fund is administered through a parent management company, which may hire or fire fund managers. The problem arises when a particular fund manager starts choosing investment securities for the fund not for reasons advantageous to the fund, but for reasons advantageous to the fund manager.

Investment Over-Concentration Issues:
One of the most important rules of investing is diversification. If a broker concentrates a customer’s portfolio in any individual investment or type of investment, then the risk of losses with that portfolio is dramatically increased. It's the old adage that it is unwise to place all of your "investment" eggs in one basket. A broker who does not diversify his client's portfolio is potentially liable should that investment decline in value.

If you or someone you know in Dallas or surrounding areas needs the assistance of an experienced Texas Securities Attorney, please call Hulse ♦ Stucki, PLLC today at 866-748-9652, or complete the contact form provided on this site to schedule your initial consultation.

Professional Profiles

At Hulse ♦ Stucki, PLLC, we regard client communication and confidentiality as among the our top priorities. We fully understand that matters surrounding the destruction of one’s savings and retirement funds are traumatic and emotionally delicate in nature. At our offices, you will find an atmosphere that is professional, yet relaxed and comfortable. We meet personally with each client, delivering effective legal services with compassion, dedication and skill.

If you or someone you know in Dallas or surrounding areas needs the assistance of an experienced Texas Securities Attorney, please call Hulse ♦ Stucki, PLLC today at 866-748-9652, or complete the contact form provided on this site to schedule your initial consultation.

FIRM ADDRESS:
Jay R. Stucki
Hulse Stucki, PLLC
2912 West Story Road
Irving, TX 75038
Phone: 866-748-9652
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:
Jay. R. Stucki

EDUCATION:

• University of Texas, Odessa, M.B.A., 1985
• Oklahoma City University of Law, J. D. 1996

• Texas
• U.S. District Court, Northern, Eastern, Western, and Southern Districts of Texas
• U.S. Disctrict Court, Western District of Oklahoma
• U.S. Court of Appeals for the 5th Circuit

• American Bar Association
• ABA Business Law Section
• Dallas Bar Association, Business Litigation Section
• Accredited Airport Executive (AAE)

• University of Nevada Las Vegas, B.S., 1989
• Oklahoma City University, J.D., 1997

• Texas
• U.S. District Court, Western District of Texas

• San Antonio Pro Bono Attorney Program, 2003

• University of Texas Arlington, B.A., 1994
• Texas Wesleyan University School of Law, J.D., 1999

• Texas

• Hispanic National Bar Association
• American Bar Association

• Texas A&M University, College Station, B.A., 1997
• University of Notre Dame Law School, J.D., 2000

• Indiana
• Texas

• Texas Young Lawyers Association
• Dallas Bar Association
  

• Washburn University,, B.A., 1996
• University Of Dayton, J.D., 1999

• Texas
• U.S. District Court, Northern, Southern, and Eastern Districts of Texas
• Waiting for admittance to the Texas Bar

• American Health Lawyers Association
• Texas Bar Association
• Dallas Bar Association