What is FINRA arbitration?

FINRA arbitration is a method of resolving disputes between investors and brokerage firms or financial advisors outside the court system. It involves a neutral third party, an arbitrator, who reviews the case and makes a binding decision.

Why choose arbitration over litigation?

Arbitration is typically faster, less formal, and more cost-effective than litigation. It also provides a final resolution to disputes, with limited grounds for appeal. Most relationships with financial advisors are formalized by entering into a contract which contains a dispute resolution clause. Nationally, most dispute resolution clauses provide for FINRA arbitration.

Who can file a FINRA arbitration claim?

Investors, brokerage firms, and financial advisors can file a FINRA arbitration claim if they have a dispute related to securities or investment activities. FINRA arbitration is normally the forum for disputes among registered persons, brokerage firms and the public customer clients of the firms.

How do I start the FINRA arbitration process?

To start the arbitration process, Bakhtiari & Harrison will file a Statement of Claim with FINRA, detailing the nature of the dispute, the parties involved, and the relief sought.

What is a Statement of Claim?

A Statement of Claim is a written document submitted by the claimant outlining the facts of the dispute, legal claims, and the desired outcome.

What happens after filing the Statement of Claim?

After filing, the respondent has 45 days to answer the Statement of Claim. The answer must address the claims and may include counterclaims or other relief sought.

What fees are involved in FINRA arbitration?

Fees include filing fees, hearing session fees, and possibly member surcharges or process fees, depending on the specifics of the case.

Can I represent myself in FINRA arbitration?

Yes, you can represent yourself, but many choose to hire an attorney with experience in securities arbitration due to the complexity of the process. Investors and industry professionals who choose to represent themselves do so at a substantial disadvantage, Wall Street firms typically retain experienced professional counsel to represent their interests.

How are arbitrators selected?

Arbitrators are selected through the Neutral List Selection System (NLSS), which provides a list of potential arbitrators. Both parties rank and strike names to agree on a panel.

What qualifications do FINRA arbitrators have?

FINRA arbitrators include attorneys, accountants, financial professionals, and public members who have undergone training and meet FINRA’s qualification standards.

How long does the arbitration process take?

The process typically takes 12-18 months from filing to the final award, but this can vary based on case complexity and scheduling. Preference may be given to investors that are seriously ill or elderly.

What is a prehearing conference?

A prehearing conference is a meeting between the parties and the arbitrators to discuss procedural issues, set a schedule, and address preliminary matters including final FINRA arbitration hearing dates.

What is discovery in arbitration?

Discovery is the exchange of documents and information between the parties to prepare for the hearing. It is more limited than in litigation.

What happens during the arbitration hearing?

During the hearing, both sides present evidence, call witnesses, and make arguments. The arbitrators then deliberate and render a decision.

Is the arbitration hearing open to the public?

No, arbitration hearings are private and confidential. Only the parties, their representatives, and the arbitrators may attend.

Can I settle my case before the hearing?

Yes, parties can settle at any time before the arbitrators render a decision, often through negotiation or mediation.

What is mediation in the context of FINRA arbitration?

Mediation is a voluntary process where a neutral mediator helps the parties negotiate a settlement. It is separate from arbitration and non-binding.

What happens if I lose in arbitration?

If you lose, the arbitrator’s decision is final and binding. There are limited grounds for challenging the award in court.

Can I appeal an arbitration decision?

Generally, you cannot appeal an arbitration decision. However, you can seek to vacate the award on very narrow grounds, such as arbitrator misconduct.

What types of disputes are resolved through FINRA arbitration?

Disputes include claims of fraud, breach of fiduciary duty, negligence, breach of contract, and other issues related to securities and investments.

How are damages determined in arbitration?

Damages are determined based on the evidence presented, including financial records, expert testimony, and the specifics of the case.

Can arbitrators award attorney’s fees?

Arbitrators can award attorney’s fees if provided for by law, contract, or if both parties request it.

How do I enforce an arbitration award?

An arbitration award can be enforced in court through a confirmation process, making it a judgment that can be collected.

What is expungement in FINRA arbitration?

Expungement is the process of removing information from a broker’s record on the Central Registration Depository (CRD) system. It is only granted under specific conditions.

What are the grounds for vacating an arbitration award?

Grounds for vacating an award include arbitrator bias, fraud, corruption, or misconduct, as well as exceeding their powers.

Are arbitration awards public?

Yes, arbitration awards are published on FINRA’s website, providing transparency and access to past decisions.

What is the role of the Office of Dispute Resolution?

The Office of Dispute Resolution administers arbitration and mediation cases, ensuring that the process runs smoothly and efficiently.

What is a Simplified Arbitration?

Simplified Arbitration is for cases involving claims of $50,000 or less, allowing for a quicker and less expensive resolution without a hearing.

Can I request an expedited hearing?

Yes, in certain circumstances, such as elderly or seriously ill parties, you can request an expedited hearing.

What is the role of an arbitrator?

An arbitrator acts as a neutral decision-maker, reviewing evidence, hearing testimony, and issuing a binding decision on the dispute.

How do I prepare for an arbitration hearing?

Preparation involves gathering evidence, preparing witnesses, and developing a clear case strategy to present to the arbitrators.

What types of evidence are admissible in arbitration?

Evidence can include documents, emails, financial records, expert reports, and witness testimony, subject to the arbitrators’ discretion.

Can I request documents from the other party?

Yes, through the discovery process, you can request relevant documents and information from the other party to support your case.

How does FINRA handle conflicts of interest with arbitrators?

FINRA requires arbitrators to disclose any potential conflicts of interest, and parties can object to arbitrators they believe are biased.

What happens if a party does not comply with discovery?

If a party does not comply, the other party can file a motion to compel, asking the arbitrators to order compliance and possibly impose sanctions.

What is a motion in arbitration?

A motion is a formal request for the arbitrators to make a ruling on a specific issue, such as compelling discovery or dismissing a claim.

Can I request interim relief in arbitration?

Yes, you can request interim relief, such as temporary restraining orders or injunctions, to preserve the status quo pending the final decision.

How are hearing locations determined?

Hearing locations are typically determined by the location of the claimant unless both parties agree to a different venue.

What is a telephonic or virtual hearing?

Telephonic or virtual hearings are conducted via phone or video conference, allowing parties to participate remotely.

How are arbitration awards paid?

Awards are typically paid by the losing party within 30 days of the decision, unless otherwise specified by the arbitrators.

What if the losing party does not pay the award?

If the losing party does not pay, you can seek enforcement through the courts, turning the award into a legally enforceable judgment.

Are there any limits on the types of claims I can bring in arbitration?

FINRA arbitration covers a broad range of claims related to securities, but there are some statutory and regulatory limits on certain types of claims.

Can I bring a class action in FINRA arbitration?

No, class actions are not permitted in FINRA arbitration. However, you can join other claimants in a single arbitration if the claims are similar.

What is the role of expert witnesses in arbitration?

Expert witnesses can provide specialized knowledge and opinions to help explain complex financial issues to the arbitrators.

How are hearing dates scheduled?

Hearing dates are scheduled based on availability of the parties and arbitrators, with consideration for the complexity of the case.

Can I request a different arbitrator if I believe one is biased?

Yes, you can challenge an arbitrator if you believe they have a conflict of interest or bias that affects their impartiality.

What is a “chairperson” in a FINRA arbitration panel?

The chairperson is the lead arbitrator who manages the procedural aspects of the case and ensures the hearing runs smoothly.

How does FINRA ensure fairness in arbitration?

FINRA has rules and procedures in place to ensure a fair and impartial process, including arbitrator training and disclosure requirements.

How do I learn more about the FINRA arbitration process?

For more information, you can visit FINRA’s website, contact their Office of Dispute Resolution, or consult with experienced attorneys like those at Bakhtiari & Harrison.

How can Bakhtiari & Harrison help with FINRA arbitration?

Bakhtiari & Harrison can assist with filing claims, responding, selecting arbitrators, discovery, hearings, and ensuring the best possible outcome through skilled representation and strategic advice.

Navigating Challenges with Aegis Capital Corp.

Are You a Victim of Aegis Capital Corp.?

We all know there are inherent risks in investing in the stock market. But then there are avoidable risks. This is especially true when dealing with Aegis Capital Corp. Many investors have faced problems with this company. At Bakhtiari & Harrison, we help investors recover money defrauded by their stockbroker and brokerage firm.

Understanding the Risks with Aegis Capital

When you invest, you trust your stockbroker to take care of your money. This is not only the right thing to do, but it is the law. However, sometimes, that trust is broken. Aegis Capital has had many problems with regulators. Knowing these risks can help you protect yourself.

Problems with Trading Practices

From 2014 to 2018, Aegis Capital did not follow good trading practices. FINRA, a group that watches over brokers, found that Aegis Capital made too many trades in customer accounts. These trades were not good for their clients. This caused over $2.9 million in costs for investors. Imagine losing most of your money to trading fees. This is what happened to many people.

Because of this, Aegis Capital was punished. They had to pay $1.7 million back to investors. They were also fined $1.1 million for not watching over their brokers. Worse, the people in charge at Aegis Capital ignored over 900 warnings about bad trades. They also ignored more than 50 customer complaints.

Selling Penny Stocks

Another problem with Aegis Capital is the way they sold penny stocks. Penny stocks are cheap stocks, but they can be very risky. Aegis Capital sold billions of these stocks without following the rules. They made a lot of money from this, but it wasn’t fair to their customers.

Because they didn’t follow the rules, Aegis Capital was fined almost $1 million. This shows that they did not protect their clients from risky investments.

Failing to Stop Money Laundering

Money laundering is when people try to hide illegal money. Brokers must have systems in place to catch this. But Aegis Capital failed to do this. FINRA fined them $550,000 because they did not have good systems to watch out for bad activities.

For investors, this is a big problem. You want to know that your money is safe. But if a broker doesn’t catch illegal activities, it puts your money at risk.

Disclosures from Aegis Capital

If you are thinking about investing with Aegis Capital, you need to know their history. FINRA’s BrokerCheck shows that Aegis Capital has many problems. These problems include customer complaints, regulatory actions, and arbitration cases.

Customer Complaints

Many customers have complained about Aegis Capital. These complaints are serious. They often involve things like making trades without the customer’s permission, making too many trades, and giving bad advice.

Customer complaints are a warning sign. If many people are unhappy, there may be a pattern of bad behavior. This is something to think about before you invest.

Regulatory Actions

Aegis Capital has faced many actions from regulators. These actions include fines and punishments. The main problem is that they didn’t watch over their brokers. They also didn’t have good systems to catch illegal activities.

For investors, this is another warning sign. A firm that has been punished many times might not be the best place to invest your money.

Arbitration Cases

When investors lose money because of a broker’s bad actions, they sometimes go to arbitration. Arbitration is a way to get money back without going to court. Aegis Capital has been involved in many arbitration cases. These cases show that some investors have suffered because of their actions.

If you have lost money because of Aegis Capital, you might want to think about arbitration. It can help you get your money back. But you will need a good lawyer to help you.

How Bakhtiari & Harrison Can Help You

At Bakhtiari & Harrison, we help people who have lost money because of bad brokers. We know the law and can guide you through the process. One of the main ways we can help you is through FINRA arbitration.

Understanding FINRA Arbitration

FINRA (Financial Industry Regulatory Authority) arbitration is a way to resolve disputes between investors and brokerage firms without going to court. It is often faster and less expensive than a traditional lawsuit. In arbitration, a neutral third party, known as an arbitrator, listens to both sides and then makes a decision. This decision is usually final and binding, meaning it can’t be appealed in most cases.

When you open an account with a brokerage firm, you often agree to resolve disputes through arbitration rather than in court. This is common practice in the financial industry. While arbitration can be a good way to settle disputes, it’s important to have a skilled attorney by your side. The process can be complex, and the rules are different from those in a regular courtroom.

At Bakhtiari & Harrison, we have experience handling FINRA arbitration cases. We know how to present a strong case and fight for the best possible outcome. Whether your case involves unsuitable trading practices, unauthorized trades, or other misconduct, we are prepared to represent you in arbitration.

The Arbitration Process

The arbitration process begins when you file a claim with FINRA. After the claim is filed, both sides will exchange information and evidence. This is known as the discovery phase. During this time, we work to gather all the necessary documents, statements, and other evidence to support your case.

Next, the case will go before an arbitration panel. This panel is made up of one or three arbitrators, depending on the size of your claim. The arbitrators will hear arguments from both sides and review the evidence. After the hearing, the arbitrators will make a decision. If you win, the panel may order the brokerage firm to pay you damages.

The hearing itself is a critical part of the process. It typically takes place in a conference room, not a courtroom, which helps keep the atmosphere less formal. During the hearing, both sides will present their case. This includes opening statements, witness testimonies, and closing arguments. Witnesses might include financial experts who can explain complex investment concepts, as well as fact witnesses who can provide information about specific events.

You and your attorney will have the chance to present your side of the story. This is where strong legal representation becomes crucial. The arbitrators will ask questions, and your attorney will need to respond effectively, making sure your case is clearly understood.

The arbitration panel has the authority to ask questions and seek clarifications during the hearing. They will carefully evaluate the evidence presented by both sides. Unlike a jury trial, where emotions might influence the outcome, arbitrators focus on the facts and the law. They are typically professionals with expertise in finance, law, or both, ensuring a fair and informed decision-making process.

After the hearing, the arbitrators will take time to deliberate. They will review the evidence and discuss the arguments presented. This can take a few weeks, depending on the complexity of the case. Once they have made their decision, they will issue an award.

If you win the case, the arbitration panel may order the brokerage firm to compensate you for your losses. This could include the return of lost investments, payment for damages, and possibly even interest or legal fees. The arbitration award is legally binding, which means the brokerage firm must comply with the decision. If they fail to do so, you can take legal steps to enforce the award.

It’s important to note that while arbitration is generally faster than going to court, the process still requires patience. Each step, from filing the claim to receiving the award, takes time. However, with a skilled attorney guiding you, the process can be navigated more smoothly.

Personal Help

Every case is different. We take the time to understand your situation. We give advice that fits your needs. Our goal is to help you understand your rights and your options.

Strong Representation

If you’ve been wronged, you need someone to fight for you. We will stand up for you in arbitration or court. We will work hard to get back as much of your money as possible.

Expertise in Tough Cases

Securities law can be complicated. But we have experience with tough cases. We know how to build a strong case and win for our clients.

Take Action Now

If you think your money has been mishandled by Aegis Capital, don’t wait. It’s important to act quickly to protect your investments.

Contact Bakhtiari & Harrison today to talk about your case. We can help you understand your options and guide you through the next steps.

Visit our website at or call us to set up a meeting. We are here to help you recover your losses in the stock market.

Be Careful with Your Investments

Investing can help you grow your money, but it also comes with risks. As the saying goes, there are no free lunches. Aegis Capital has shown that not all brokers act in their clients’ best interests. That’s why it’s so important to be careful and do your research. You can view complaints about a stockbroker by going online to FINRA BrokerCheck.

At Bakhtiari & Harrison, we are here to help you when things go wrong. If you’ve had problems with Aegis Capital or any other stockbroker, contact us. We can review your case and help you decide if legal action is appropriate to recover your losses.