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 Does An Investment Fraud Attorney Assist With a FINRA Claim?

Investment fraud can have devastating consequences, both financially and emotionally. When you’ve been deceived or misled in your financial dealings, the process of recovering lost funds and seeking justice can feel overwhelming. An investment fraud attorney can assist in investigting and prosecuting your FINRA arbitration claim.

An Investment Fraud Attorneys Role in a FINRA Arbitration

They guide you through the complicated legal process. They will assist you in fighting for compensation. In this blog, we will look at how an investment fraud attorney can help you. We will also discuss why working with a law firm like Bakhtiari & Harrison can greatly improve the prospects of winning your case.

Investment fraud occurs when someone intentionally deceives an investor for financial gain. This can happen through various schemes, including Ponzi schemes, pyramid schemes, insider trading, and false promises of high returns with little risk. Victims of these schemes often lose substantial sums of money, jeopardizing their financial security.

An investment fraud attorney’s primary role is to protect your rights and pursue legal action against the perpetrators. But how do they do this? Let’s explore the critical steps an attorney takes to assist victims of investment fraud.

Conducting a Thorough Investigation

The first step an investment fraud attorney will take is to investigate your case. This involves gathering evidence, reviewing financial documents, and identifying the parties involved in the fraud. An attorney will work to uncover whether there was any misrepresentation or omission of material facts during your investment process. This detailed investigation can often reveal patterns of misconduct that were not immediately apparent.

By conducting a thorough investigation, your attorney helps build a solid foundation for your case, ensuring that the responsible parties are held accountable for their actions.

Navigating Complex Regulations

Investment fraud cases often involve navigating complex financial regulations. There are various laws at both the federal and state levels that govern investment activities, including securities laws, banking regulations, and consumer protection statutes. These laws can be difficult for the average person to understand, especially when trying to prove fraud.

An investment fraud attorney is familiar with these regulations and can help interpret how they apply to your case. This knowledge is essential for presenting a strong legal argument and ensuring that your claim is filed correctly and within the required time frame.

Pursuing Financial Recovery

One of the primary goals in any investment fraud case is recovering the money you lost. Depending on the specifics of your case, this could involve filing a lawsuit, engaging in arbitration, or negotiating a settlement. An attorney will assess the best course of action based on the strength of your case and the financial status of the perpetrator.

If you are involved in a dispute with a brokerage firm, for example, your attorney may represent you in front of the Financial Industry Regulatory Authority (FINRA) to seek compensation. In other cases, they may initiate a civil lawsuit to recover damages.

Throughout this process, your attorney will work tirelessly to maximize your chances of financial recovery, whether that’s through a settlement, judgment, or arbitration award.

Handling Complex Paperwork and Filings

Investment fraud cases come with a mountain of paperwork. There are legal documents to file, evidence to submit, and deadlines to meet. An attorney will take care of these technical details, ensuring that all paperwork is completed accurately and submitted on time. This attention to detail can prevent costly mistakes that could jeopardize your case.

Additionally, if your case goes to court or arbitration, your attorney will handle the legal filings, prepare briefs, and present your arguments in front of a judge, jury, or arbitrator.

Beyond the financial loss, being a victim of fraud can take an emotional toll. You may feel betrayed, anxious, and uncertain about your future.

An investment fraud attorney not only provides legal guidance but also offers a measure of emotional support during this difficult time. Having a skilled professional on your side can give you peace of mind. This support lets you focus on rebuilding your financial future.

Protecting Your Legal Rights

Investment fraud attorneys understand the tactics used by fraudulent individuals and institutions to avoid responsibility. They can help ensure your legal rights are protected throughout the process, preventing the opposing party from taking advantage of any legal loopholes or trying to dismiss your claims.

Having a dedicated advocate on your side increases the likelihood that you will receive fair treatment and achieve a positive outcome in your case.

Ensuring Accountability

Finally, by pursuing legal action, you are not only seeking financial recovery for yourself but also holding the fraudulent parties accountable. In many cases, investment fraud attorneys work to prevent these individuals or institutions from defrauding others in the future. Your case could contribute to larger legal actions that protect other investors from similar schemes.

Why Choose Investment Fraud Attorneys at Bakhtiari & Harrison?

When you need legal assistance after falling victim to investment fraud, it’s essential to work with a law firm that has the knowledge and experience to effectively handle your case. Bakhtiari & Harrison has a proven track record of helping clients recover their losses and seek justice against fraudulent parties. Our team is committed to delivering personalized service, guiding you every step of the way, and fighting for the best possible outcome in your case.

At Bakhtiari & Harrison, we understand that no two cases are the same. That’s why we take the time to understand your unique situation and tailor our legal strategy to meet your needs. Whether you’ve been deceived by a financial advisor, involved in a Ponzi scheme, or have experienced any form of investment fraud, we are here to help.

If you believe you’ve been a victim of investment fraud, don’t wait. The sooner you seek legal assistance, the better your chances of recovering your losses. Contact investment fraud attorneys at Bakhtiari & Harrison today to schedule a consultation. We’ll work with you to explore your legal options and help you take the first step toward financial recovery.