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.

How to Choose a Commodities Fraud Attorney

Navigating the aftermath of commodities fraud can be a daunting task. You may feel overwhelmed and unsure of your next steps. It may be difficult to trust anyone after someone managming your life savings has not acted in your best interest.

One crucial step is choosing a commodities fraud attorney. This professional can help you recover your losses and navigate the legal path ahead of you.

But how do you select the right attorney? What factors should you consider? These are questions that many victims of commodities fraud grapple with.

In this article, we aim to guide you through this process. We will outline key factors to consider when selecting a commodities fraud attorney.

This guide provides practical tips and advice for people who invest money, trade stocks, or have experienced scams. Our goal is to help you make an informed decision when hiring legal representation.

Understanding Commodities Fraud

Commodities fraud is a type of investment fraud involving commodities such as oil, gold, or agricultural products. Fraudsters may use deceptive practices to manipulate prices or mislead investors about the value of these commodities. In some cases, brokers may take or steal valuables such as gold coins.

Understanding the nature of commodities fraud is the first step in seeking legal recourse. Recognizing the common forms of this fraud, such as price manipulation, false reporting, and Ponzi schemes, is important. This knowledge can help you identify when you’ve been a victim and guide your next steps.

The Role of a Commodities Fraud Attorney

A commodities fraud attorney focuses on cases involving fraudulent activities in the commodities market. They play a crucial role in helping victims recover their losses and seek justice.

These attorneys navigate complex legal and financial landscapes to build a strong case. They work with financial experts, investigate thoroughly, and use their knowledge of regulations to fight for their clients’ rights. Their expertise can increase the chances of a successful outcome in a commodities fraud case. Some cases can we won or lost at the stage of selecting the attorney that will represent you.

Key Factors in Selecting the Right Commodities Fraud Attorney

Choosing the right commodities fraud attorney is a critical step in your journey towards justice. You should not take this decision lightly.

When selecting an attorney, you should consider several key factors. These include their specialization and experience, track record and success rate, knowledge of regulations, and their approach to communication.

Experience
Track Record and Success Rate
Knowledge of Regulations
Personalized Approach and Communication

Experience

The first factor to consider is the attorney’s experience in the field. A commodities fraud attorney must have a deep understanding of the commodities and securities markets. They also need to be knowledgeable about the various types of fraud that occur within the market.

They should also have significant experience in handling commodities and securities fraud cases. This experience can greatly influence the outcome of your case.

Track Record and Success Rate

An attorney’s track record and success rate are also important. These can give you an idea of their capabilities and the likelihood of a successful outcome in your case.

Look for a lawyer who has a successful track record in winning cases and recovering money for clients. This is especially important in fraud cases that involve commodities.

Knowledge of Regulations

A competent commodities fraud attorney should have a thorough understanding of federal and state regulations related to commodities trading. This knowledge is crucial in building a strong case and navigating the legal process.

They should also be up-to-date with the latest changes in regulations and legal precedents that could impact your case.

Personalized Approach and Communication

Finally, consider the attorney’s approach to communication and their willingness to personalize their services to your needs. They should be able to explain complex legal concepts in plain language and keep you informed about the progress of your case.

A good attorney will also take the time to understand your specific situation and tailor their approach accordingly.

Evaluating a Commodities Fraud Attorney’s Credentials

Before hiring a commodities fraud attorney, it’s essential to evaluate their credentials. This can provide valuable insights into their competence and reputation. The selection of counsel representing you is one of the single most important decisions you will make.

Credentials and Bar Association Status

Check the attorney’s credentials and ensure they are a member of the bar association in your state. This verifies their legal standing and ability to practice law.

Client Reviews

Also, consider client reviews. These can give you a sense of the attorney’s performance and client satisfaction. Look for consistent positive feedback and successful case outcomes.

Understanding Legal Fees and Costs

Legal fees and costs are a crucial factor to consider when hiring a commodities fraud attorney. Understanding how these fees are structured and what they cover is important.

Most attorneys offer a free initial consultation. During this meeting, ask about their fee structure.

Some attorneys work on a contingency basis, meaning they only receive payment if they win your case. Others may charge hourly rates or flat fees.

Be sure to ask about any additional costs, such as court fees or expenses for expert witnesses. Understanding these costs upfront can help you budget appropriately and avoid any surprises later on.

The Importance of an Initial Consultation

An initial consultation is a vital step in choosing a commodities fraud attorney. This meeting allows you to discuss your case, understand the attorney’s approach, and evaluate their communication style. Also an opportunity to ask about fees, success rates, and their experience with similar cases. Make sure to prepare a list of questions to ensure you get the most out of this consultation.

Making an Informed Decision

Choosing the right commodities fraud attorney is a crucial decision that can significantly impact your case’s outcome. By considering their experience, track record, communication style, and fees, you can make an informed choice. Find a lawyer who can represent you well and help you get back what you lost. Contact us at Bakhtiari & Harrison, where we serve as trusted commodities and securities fraud lawyers.