The Law Offices of Robert Wayne Pearce, P.A. has helped investors recover losses from broker securities fraud for over 45 years.
A nationwide law firm, they represent defrauded investors, stockbrokers, and financial advisors in securities fraud cases, FINRA arbitrations, and regulatory enforcement matters involving the SEC, CFTC, and FINRA.
Founded and led by Robert Wayne Pearce who has over 45 years of experience in investment fraud law, the securities law firm focuses primarily on helping investors recover losses from investment fraud while also defending financial professionals in regulatory actions and employment disputes within the securities industry.
The firm's attorneys handle complex investment disputes including private placement and Regulation D fraud, structured products litigation, and broker-dealer misconduct cases.
The investment and securities fraud lawyers at the Law Offices of Robert Wayne Pearce P.A., represents clients on all sides of securities, commodities and investment fraud and other issues in a broad range of practice areas in courtroom litigation, arbitration, SEC defense, and mediation proceedings.
Attorney Robert Wayne Pearce and his team have handled hundreds of FINRA, AAA and JAMs securities arbitration and mediation cases for satisfied clients located in many U.S. states and throughout the world.
Our investment and securities fraud lawyers have represented investors throughout the United States and internationally. We have recovered over $185 million for our investor clients in all types of stockbroker fraud and broker and advisor misconduct cases.
At The Law Offices of Robert Wayne Pearce, P.A., we believe the ultimate barometer of our success is surpassing the expectation of our clients.
The following clients have direct knowledge of our law firm's processes from the inside and experienced our securities fraud attorneys' fierce advocacy.
The page explains that non-traded real estate investment trusts (REITs) were widely promoted but often involved misrepresentations about returns, liquidity, and risks. At our firm, we’ve seen investors misled by sales solicitations lacking transparency, resulting in unsuitable, complex investment losses. Understanding these risks is essential before investing in any illiquid REIT offering.
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FINRA arbitration can help investors recover losses, but results depend on preparation and strategy. Our attorneys conduct a detailed case review, draft a fact-rich Statement of Claim, and manage arbitrator selection, discovery, mediation, and hearing presentation. We focus on evidence, deadlines, and damages analysis so clients know what to expect from start to award today.
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If you invested in an Inspired Healthcare Capital DST, income fund, or private placement and lost money, you are not alone. Thousands of investors are now facing suspended distributions, frozen capital, and the very real possibility of total loss after Inspired Healthcare Capital (IHC)’s downfall and subsequent Chapter 11 bankruptcy filing on February 2, 2026.
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Investment Fraud Lawyer | Law Offices of Robert Wayne Pearce, P.A | Securities Law Firm
With a Successful Track Record for Recovery of Investment Losses
Attorney Robert Wayne Pearce is a well-respected advocate for investors throughout the legal community, known as a fierce litigator and tireless not only in Florida but across the nation and near you.
Read his Investors’ Rights Blog and discover the breadth of his knowledge that can only be gained from over 45 years of legal experience for yourself. As one of the most experienced in FINRA arbitration, Mr. Pearce knows all of the available options for your case and will pursue them vigorously to secure the best possible outcome for you and your stockbroker fraud and stockbroker misconduct case.
He has earned a peer rating of AV Preeminent * through the Martindale-Hubbell peer review rating process, the highest available rating through that program.
Mr. Pearce is one of Thomson Reuters Florida Super Lawyers ** for Securities Litigation (Top 5). Read the feature article about him in the Florida 2014 Super Lawyers magazine entitled: “No Excuses – How Robert Wayne Pearce Stared Down Personal Disaster”.
During his more than 45 years of experience practicing securities and commodities law, he has won numerous million-dollar awards and settlements for his clients which has earned him recognition for his success by The Million Dollar Advocates Forum and The Multi-Million Dollar Advocates Forum as one of the Top Trial Lawyers in America TM***.
By hiring The Law Offices of Robert Wayne Pearce, P.A., you get access to his over 45 years of experience practicing in the area of securities, commodities and investment fraud on both sides of the table in arbitrations and courtroom litigation, and you will clearly see his legal experience and knowledge in action. Having a fierce litigator and tireless advocate of your rights, and one who will quickly identify both the strengths and the weaknesses of your case will surely increase the likelihood of winning your case.
Reverse convertible securities are short-term structured investments that combine a debt instrument with an embedded put option tied to an underlying asset. They usually offer above-market coupon payments, but investors may experience large principal losses if the core assets fall below a specified knock-in barrier. These securities can provide higher income than traditional fixed-income investments, but they also carry significant market, liquidity, credit, and principal loss risks. If you are considering investing in reverse convertible securities or believe you have suffered losses because of investment fraud or broker misconduct, the investment fraud attorneys at Robert Wayne Pearce, P.A. will walk you through how these securities work, the risks involved, warning signs of broker misconduct, and your potential options for recovering investment losses. What Are Reverse Convertible Securities? Reverse convertible securities are high-yield, short-term structured products that pair a debt instrument with an embedded put option linked to a reference asset. They are typically linked to individual stocks, stock indexes, or baskets of equities and are commonly sold in $1,000 denominations. Investors receive a fixed coupon through periodic interest payments until the maturity date, but many reverse convertibles include a knock-in barrier that can allow the issuer to repay principal through the conversion and delivery of depreciated shares rather than cash. Brokers often market reverse convertible notes as income-producing investments because they generally offer coupon rates above those available on conventional bonds and other fixed-income securities. But the higher coupon compensates the investor for accepting substantial downside exposure to the underlying security. For that, they should always evaluate the coupon together with the risk of principal loss instead of treating the interest rate as a standalone benefit. FINRA Regulatory Notice 10-09 warned brokerage firms about the complex risks associated with reverse convertibles and the obligations involved in recommending them to retail investors. The SEC has also brought enforcement actions involving the sale of these products, including an action in which UBS agreed to pay more than $15 million over supervisory and training failures related to reverse convertible notes. How Do Reverse Convertible Securities Work? Reverse convertible securities pay investors a fixed coupon in exchange for exposing their principal to the performance of an underlying stock, index, or other reference asset. Economically, part of the transaction resembles the investor selling a put option to the issuer, which helps explain why the note can offer a higher coupon than an ordinary bond. Many reverse convertibles have a knock-in barrier, which sets a price level that can expose the investor to principal losses. But that only happens if the linked asset falls below the barrier during the specified observation period. Once the barrier is breached and the conversion conditions are met at maturity, the issuer may repay the investor with shares of the linked stock rather than returning the original principal in cash. In effect, an investment that began as a fixed-income security can leave the investor holding an equity position way less than the amount originally invested. The scale of the market also demonstrates why these products have attracted regulatory attention. UBS alone sold approximately $10.7 billion in reverse convertible securities across roughly 44,000 customer accounts during the period addressed by the SEC’s enforcement action. What Are the Risks of Reverse Convertible Securities? The main risks of reverse convertible securities are principal loss risk, market risk, limited upside potential, credit risk, liquidity risk, complexity and valuation risk, call and reinvestment risk, and tax risk. Principal Loss Risk One biggest concern is the possibility of losing part of the principal. The amount returned at maturity may be less than what the investor initially paid, depending on the note’s terms and how the investment is settled. This can leave the investor with a loss even after receiving the scheduled coupon payments. When a barrier is breached and conversion occurs, the investor may receive shares worth considerably less than the original principal. For example, an investor who commits $100,000 to a reverse convertible could receive stock worth substantially less than $100,000 at maturity if the underlying shares have fallen sharply. Market Risk Market risk arises from changes in the value of the stock, index, or other asset linked to the reverse convertible. A huge decline in that reference asset can trigger conversion and expose the investor to principal losses even when the broader financial markets remain relatively stable. This risk may be greater when the reverse convertible is based on a single stock. Earnings disappointments, regulatory issues, product failures, management problems, and other company-specific events can send the stock price lower and potentially push it below the note’s barrier. Limited Upside Potential Reverse convertibles generally limit an investor’s upside to the coupon payments specified by the note. If the underlying stock increases substantially in value, the investor ordinarily does not participate in that capital appreciation in the same manner as a shareholder. For example, if the linked stock rises by 30%, the reverse convertible investor may still receive only the predetermined coupon and repayment provided under the note’s terms. The investor has accepted exposure to the stock’s downside without receiving equivalent participation in its upside. Credit Risk Reverse convertible securities are generally unsecured obligations of the issuing bank or financial institution. Investors therefore face credit risk in addition to the market risk associated with the underlying security. If the issuer becomes unable to meet its obligations, an investor could lose principal and expected coupon payments regardless of how the underlying stock performs. The financial crisis demonstrated that the credit quality of major financial institutions can deteriorate rapidly during periods of severe market stress. Liquidity Risk Selling the investment before maturity may be difficult because there may be little or no active secondary market for a particular note. An investor who needs access to their money before maturity may have trouble finding a buyer at a reasonable price. Even where an issuer or broker-dealer is willing to repurchase the security, the offered price may be substantially below its theoretical value or the investor’s original purchase price. Market...
Learn MoreCredit Default Swaps—once the exclusive domain of Wall Street trading desks—now reach everyday investors through structured notes, ETFs, and mutual funds, often without their knowledge. These complex instruments embed CDS risk inside products marketed as “enhanced yield” or “principal protected” investments, exposing retirement accounts and conservative portfolios to catastrophic losses. Since the 2008 financial crisis, CDS-linked products have generated hundreds of billions in investor losses, triggered landmark enforcement actions, and remain a persistent source of FINRA arbitration claims.
Learn MoreFraudulent misrepresentation occurs when someone knowingly or recklessly makes a false statement of material fact intending for another person to rely on it, and that person suffers damages as a result. In investment disputes, this can happen when a stockbroker or financial professional lies about or conceals important information concerning an investment’s risks, returns, fees, liquidity, or other material facts. If you have been the victim of stockbroker misrepresentation, you are probably feeling angry, confused, and unsure whether you can recover the money you lost. We want you to know that you have rights. Contact the investment fraud lawyers at the Law Offices of Robert Wayne Pearce, P.A., for a free consultation. We can review your case and determine whether we can help you pursue the settlement or damages you deserve. In this guide, we will cover what fraudulent misrepresentation is, the elements required to prove it, how it differs from negligent and innocent misrepresentation, when it may constitute a crime, and how an investment fraud attorney can help you recover your losses. What Is Fraudulent Misrepresentation? Fraudulent misrepresentation occurs when a person or business knowingly makes a false or misleading statement of material fact to induce another person to act, and this deceptive practice causes financial harm. It is a form of fraud that can involve an outright lie, a misleading statement, or, in some circumstances, the concealment or omission of material information. For a misrepresentation to constitute fraud, several elements generally must be present. There must be a false representation of material fact, knowledge that the representation is false or reckless disregard for its truth, an intent to induce reliance, actual and justifiable reliance, and resulting damages. The precise elements vary by jurisdiction, which we will discuss in more detail later in this guide. Fraudulent misrepresentation can arise in ordinary business transactions, contracts, real estate transactions, sales, and many other commercial dealings, including contract disputes. In contract law, it may involve a false statement that leads someone to enter into an agreement, potentially making the contract voidable. But in investments and securities transactions, a broker, financial advisor, issuer, or other party may misrepresent or conceal material information to persuade an investor to purchase, sell, or hold an investment. If you lost money because a broker or financial professional misrepresented an investment, contact the investment fraud lawyers at the Law Offices of Robert Wayne Pearce, P.A. Our firm represents investors nationwide and can review the circumstances surrounding your losses to determine whether you may have a claim. What Are the Elements of Fraudulent Misrepresentation? The elements of fraudulent misrepresentation include a false statement of material fact, knowledge that the statement is false or reckless disregard for its truth, an intent to induce reliance, actual reliance, and resulting damages. A Representation Was Made The defendant must have made a statement or representation to the plaintiff. In some circumstances, concealing or omitting material information can also qualify when the defendant had a duty to disclose it. The Representation Was False The statement or representation must have been false or misleading when it was made. The falsehood generally must concern a material fact, meaning information significant enough to affect the plaintiff’s decision. The Defendant Knew the Representation Was False The defendant must have known the representation was false or acted recklessly without knowing whether it was true. The legal term for this is scienter. It is what separates a fraudulent misrepresentation from an innocent mistake. The Defendant Intended to Induce Reliance The defendant must have made the representation with the intent to cause the plaintiff to rely on it. In an investment case, this could involve making false claims about an investment to persuade an investor to purchase or hold it. The Plaintiff Relied on the Representation The plaintiff must have made a decision because of the false or misleading information. The law may also require the plaintiff to show that doing so was reasonable or justifiable under the circumstances. The Plaintiff Suffered Damages The plaintiff’s reliance on the misrepresentation must have caused an actual loss or injury. In an investment fraud case, this can include financial losses, lost profits, and other damages resulting from purchasing, selling, or holding an investment based on false information. It can also bring reputational harm when supported by the facts and applicable law. The precise elements and standards required to prove fraudulent misrepresentation claims can vary by jurisdiction and the type of fraud claims involved. At the Law Offices of Robert Wayne Pearce, P.A., we litigate cases where stockbrokers and financial professionals make material misrepresentations or conceal important facts from investors. Investors who suffer financial losses because of fraudulent misrepresentation may have the legal right to recover damages. Fraudulent vs. Negligent vs. Innocent Misrepresentation The difference between fraudulent, negligent, and innocent misrepresentation generally comes down to what the person making the false statement knew, or should have known, when they made it. Is Fraudulent Misrepresentation a Crime? Fraudulent misrepresentation can be a crime, but it is more commonly pursued as a civil claim. The legal consequences depend on the facts, the defendant’s intent, and the federal or state laws that apply, including whether punitive damages may be available. In the investment industry, fraudulent misrepresentation can also constitute securities fraud. A stockbroker, investment adviser, or other financial professional may violate federal or state securities laws by knowingly making material false statements or concealing material facts to induce you to invest. Serious cases can lead to investigations or enforcement actions by the SEC and, where criminal laws have been violated, prosecution by federal or state authorities. The same conduct may also violate FINRA rules. For example, FINRA Rule 2020 prohibits members from using manipulative, deceptive, or other fraudulent devices in connection with the purchase or sale of securities. Brokers and brokerage firms may face FINRA disciplinary action, while investors who suffer losses may be able to pursue compensation through FINRA arbitration. At the Law Offices of Robert Wayne Pearce, P.A., we represent investors in fraudulent misrepresentation cases involving...
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