The Importance of Selecting Experienced Securities Counsel

Why counsel selection matters more in FINRA arbitration than in court

In court litigation, the rules of evidence are applied by a judge who monitors the proceeding for fairness. Appeals are available. Procedural protections are built into the system. In FINRA arbitration, none of these structural safeguards apply in the same way. There is no judge. The rules of evidence are applied loosely, at the discretion of the arbitration panel. The award is final — grounds for appeal are narrow and rarely succeed. The outcome depends far more on the skill, preparation, and credibility of the attorneys than the court system does.

This makes the choice of arbitration counsel more consequential, not less. An attorney who is unfamiliar with the specific dynamics of FINRA arbitration — the arbitrator selection process, the discovery norms, the hearing conventions, and the informal expectations of experienced FINRA arbitrators — will be at a significant disadvantage against experienced brokerage firm defense counsel.

What to look for in a FINRA arbitration attorney

• Direct FINRA arbitration experience: not securities law experience generally, but specific FINRA arbitration experience. An attorney who has appeared in dozens of FINRA arbitration hearings knows what panels respond to, how discovery is actually conducted in this forum, and what settlement dynamics look like. General litigation experience is not a substitute.
• Familiarity with the specific product or claim type: FINRA arbitration cases frequently involve complex financial products — non-traded REITs, structured notes, private placements, variable annuities, hedge funds. An attorney who does not understand the specific product at issue cannot effectively evaluate damages, cross-examine the firm’s expert, or present the case to a panel. Bakhtiari & Harrison has handled virtually every major product category over four decades.
• Knowledge of the regional arbitrator pool: FINRA arbitrators are selected from regional pools. Knowing which arbitrators have been appointed to similar cases, how they have ruled, and what their backgrounds suggest about their predispositions is a direct advantage in the arbitrator selection process. The firm’s decades of practice at the Los Angeles and San Francisco FINRA hearing locations — and at hearing locations throughout the country — gives it direct familiarity with the regional arbitrator pools.
• Institutional knowledge of brokerage firm defenses: brokerage firm defense counsel are experienced, well-resourced, and use consistent defense strategies that experienced claimant counsel can anticipate and address. David Harrison’s years as Morgan Stanley in-house counsel give Bakhtiari & Harrison direct knowledge of how major firms build their defenses.
• Track record: ask for specific case results. Bakhtiari & Harrison’s track record includes the $54.1 million Citigroup FINRA arbitration award — the largest FINRA arbitration award ever levied against a major Wall Street brokerage in favor of individual investors, according to the Wall Street Journal.

Questions to ask any securities attorney before retaining them

• How many FINRA arbitration cases have you taken to hearing in the past five years?
• Have you handled cases involving the specific product or claim type at issue in my case?
• Are you familiar with the FINRA hearing location and arbitrator pool that would apply to my case?
• What is your fee structure — contingency, flat fee, or hourly? What does the engagement include?
• Who specifically will handle my case — will I work with a partner or be handed to an associate?
• Can you provide references from clients in similar situations?

The Bakhtiari & Harrison difference

Bakhtiari & Harrison was founded and is operated by two partners — Ryan Bakhtiari and David Harrison — who personally handle every case. There are no associates, no handoffs to junior attorneys, no bait-and-switch. Every client works directly with the partners throughout the engagement.

Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee from 2013 to 2017 — the body that writes the rules governing FINRA arbitration. He presently serves as a FINRA securities arbitrator. He has handled FINRA arbitration cases throughout his career and has obtained results including the $54.1 million Citigroup award. He has authored more than 25 articles on securities arbitration and been quoted by the New York Times, Wall Street Journal, Bloomberg, Reuters, and the Los Angeles Times. His full profile is at the Ryan Bakhtiari page.

David Harrison began his career as a Series 7-licensed registered representative at Shearson Lehman Brothers, prosecuted fraud cases as a New York City assistant district attorney, then spent years as in-house counsel at Morgan Stanley Dean Witter — before switching sides to represent investors and financial professionals. He has been a Super Lawyer every year from 2015 to 2026. His full profile is at the David Harrison page.

Frequently asked questions — selecting securities counsel

Should I hire a local attorney or does geography matter in FINRA arbitration?

Geography matters less than expertise. FINRA arbitration hearings are held at the regional hearing location nearest the claimant — not at the attorney’s office. An experienced FINRA arbitration attorney based in California can represent a Texas investor at the Dallas FINRA hearing location, a New York investor at the New York hearing location, or a Florida investor at the Miami hearing location. What matters is the attorney’s knowledge of FINRA arbitration specifically — not their physical proximity to the client.

Is it worth hiring experienced counsel for a smaller investment fraud claim?

Yes, for several reasons. First, experienced counsel is better positioned to accurately evaluate the full scope of damages — which investors often underestimate because they focus on out-of-pocket losses and miss consequential damages, interest, and in appropriate cases, punitive damages. Second, brokerage firms treat pro se claimants and inexperienced counsel differently than they treat experienced securities attorneys — settlement offers are typically lower when the firm believes the claimant is at a disadvantage. Third, Bakhtiari & Harrison handles all investor cases on a contingency fee basis, so the cost of experienced counsel is zero unless there is a recovery.

How do I evaluate a securities attorney’s track record?

Ask for specific FINRA arbitration results — not vague claims about “millions recovered” but specific cases with specific outcomes. FINRA arbitration awards are public record and can be searched on the FINRA website. Ask whether the attorney has handled cases involving the specific product or claim type in your case. Ask how many cases the attorney has taken to hearing in the past five years — an attorney who only settles cases has not developed the hearing skills that difficult cases require.

Contact a securities attorney — free consultation

FINRA securities arbitration is the forum for the resolution for most disputes between customers, financial service professionals and financial institutions. The retention of experienced counsel and law firm is a critical step, a decision that should be made with great care. While some firms offer legal services, few – if any – have our experience and credentials.

Bakhtiari & Harrison offers their experienced counsel and legal services nationwide, representing clients in all 50 states across the United States. The Financial Industry Regulatory Authority has 69 hearing venues, including at least one in each state of the United States and one in San Juan, Puerto Rico and Washington, DC.

Contact Bakhtiari & Harrison for a free, confidential consultation. Our FINRA attorneys review every potential matter at no charge.

Investor cases are handled on a contingency fee basis — no recovery, no fee.

Call: (800) 382-7969 | Contact Us