Broker-Dealer Defense

Houston Broker-Dealer Defense Attorneys

Accused of Broker Fraud?

Many clients mistake market losses with broker misconduct. At Hendershot Cowart P.C., we defend broker-dealers in litigation and arbitration matters. Our broker-dealer defense attorneys will dig into the legal facts of the matter, investigate all agreements and understandings, and thoroughly address each claim.

We proudly serve brokerage firms, financial advisors, broker-dealer executives, and compliance officers with more than 100 years of combined legal experience and a strong record of results.

PLEASE NOTE: Unfortunately, we cannot defend financial advisors in securities investigations or enforcement actions by FINRA or the SEC.


To learn more about what our team can do for you, please call us at (713) 909-7323 today.


On This Page:

Broker-Dealer Defense Cases We Handle

We defend stockbrokers and brokerage firms from the most common claims of broker misconduct, including:

  • Fraud
  • Misrepresentation
  • Unsuitable investments
  • Breach of fiduciary duty
  • Unauthorized trading and transfers
  • Excessive trading (churning)
  • Poor diversification (concentration)
  • Portfolio mismanagement
  • Failure to supervise
  • Conflicts of interest
  • Misappropriation
  • And more

Whether you handle an investment account, securities portfolio, discretionary account, trust, or annuity, our lawyers are here to help.

Defenses to Customer Claims Against Stockbrokers

Investments involve risk and uncertainty, and stockbrokers cannot guarantee profitable investing. While clients may be quick to blame their brokers for losses, firms and financial professionals have several legal defenses. Our broker-dealer defense team will examine each claim, the elements necessary to prevail on that claim, and gather evidence to undermine the plaintiff’s allegations.

If you have been accused of unsuitable investments, for example, you can defend the quality of the investments you recommended by presenting evidence that the investment matched your client’s investment objectives.

Other times, a client may approve a transaction, then claim it was unauthorized when the investment proves unprofitable. Most clients maintain some oversight of their accounts and are responsible for raising objections in a timely manner, giving your legal team a sound defense strategy to counter the claim. Monthly statements, trade confirmation notifications, etc. are all evidence that could overturn an unauthorized trading claim.

There is also statute of limitation defense. Claims brought under Rule 10(b)(5) of the Securities Exchange Act of 1934 must be raised within two years of discovering evidence of a violation or five years after the violation itself – whichever is earlier. Breach of contract claims must be brought within four years in Texas, and tort claims (such as breach of fiduciary duty) in Texas are subject to a two-year statute of limitation.

Our team will develop a legal strategy that takes the fundamentals of each claim brought against you into account and aggressively defend your interests.

Your Law Firm for Life

Hendershot Cowart P.C. takes the time to get to know you, your business, and what your goals are, then we create a legal strategy designed to protect you. We want to be your attorneys, your team, and your law firm for life.

Whether you’ve been accused of breach of contract, breach of fiduciary duty, or a violation of the Securities Exchange Act, we have the experience you need to help you get back to what you do best – helping clients achieve their financial goals.


You’ve worked hard to build your business. Let us help you protect it. Call us at (713) 909-7323 or contact us online to schedule your consultation today.

Why Choose Our Team? Unwavering Commitment to the Success of our Clients
  • We Shoulder the Legal Burden.™
    And let you get back to business.
  • We Want to Be Your Law Firm for Life.
    We take a vested interest in our clients' success – from start to finish.
  • We Believe in Prompt, Personal Attention.
    As a boutique law firm, we unite real experience with personal attention.
  • We Serve Clients Throughout Texas and the Nation.
    We handle matters from the Red River to the Rio Grande and beyond.
  • In Business Since 1987.
    Let us put the full force of our 100+ years of combined experience to work for you.

What Our Clients Say

  • “I cannot say enough good things about my Lawyer, Mr. David Augustus. His calm, laser-like knowledge of business law allowed me to prevail and teach a few others during the short negotiations. Having the full backing of his law firm also helped greatly.” - L.A.
  • “Excellent experience working with Ray to settle our partnership dissolution. He was consistently available and steadfast in his guidance. Highly recommend this firm.” - S.H.
  • “I retained Hendershot Cowart last year. Though an obvious small case for the firm, it was traumatic and very personal for me. Ashley Arnett guided me through the process, never once making me feel that my case wasn’t any less important as any other.” - S.L.

We Are On Your Side

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