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.

Orange County Investment Fraud Lawyer & FINRA Securities Attorneys

Investment fraud can devastate individuals, both financially and emotionally. As the complexity of financial markets increases, so does the sophistication of those who exploit their vulnerabilities. Understanding the landscape of investment fraud is essential in protecting oneself and seeking justice.

Common types of investment fraud, including Ponzi schemes and misrepresentations, threaten many unsuspecting investors. With new technologies like artificial intelligence being misused in scams, it’s vital to stay informed and vigilant. Additionally, knowing your rights and available legal recourse can make a significant difference in recovering lost investments.

Orange County investment fraud lawyers at Bakhtiari & Harrison focus on guiding victims through the intricate world of investment fraud. Our experienced attorneys are dedicated to clarifying legal options and supporting our clients in their pursuit of justice. In this article, we will explore the types of investment fraud, the legal process involved, and how our client-centered approach ensures a path toward recovery.

Table of Contents

What is Investment Fraud?

Investment fraud is a deceptive practice where individuals or entities attempt to mislead investors, often with the aim of stealing their money. It encompasses a wide range of unethical activities that involve false promises or misrepresentations regarding financial products. While this article primarily focuses on securities fraud, it’s important to note that investment fraud is an all-encompassing term that extends beyond just the securities domain.

Common Types of Investment Fraud:

Securities Fraud: Involves fake trades or insider trading.
Corporate Fraud: Companies lying about their status or profits.
Real Estate Fraud: False information about property value or ownership.
Credit Card Fraud: Using your card info to make illegal purchases.
Excessive Trading (Churning): Frequent trading to earn commissions.
Unsuitable Investments: Advising wrong investments for personal gains.

Other types of fraud include health insurance fraud, investment fraud charges, mortgage fraud, foreclosure fraud, compensation fraud, check fraud, accounting fraud, and welfare fraud.

Common Forms of Fraud:

Promises of high returns with little risk.
Pressure to invest quickly.
Unclear information or aggressive sales tactics.

These frauds can result in severe financial losses. Orange County investment fraud lawyers can help victims. They have the expertise to navigate the legal process and seek punitive damages. Consulting with experienced investment fraud lawyers can increase the chances of recovering your lost funds. If you’re facing such issues, consider an initial consultation with a securities fraud attorney to understand your rights.

Common Types of Investment Fraud

Examples of securities fraud can take on a wide range of forms, each designed to deceive investors. Recognizing these various types is vital for protecting your assets and making informed decisions. This knowledge becomes particularly important when navigating potential allegations of securities fraud that may arise in these situations.

Misrepresentations

Misrepresentations in investment can manifest as either negligent misrepresentation or fraudulent misrepresentation. Negligent misrepresentation occurs when a stockbroker fails to disclose all associated risks with an investment due to a lack of reasonable care, leading to uninformed decisions. On the other hand, fraudulent misrepresentations involve intentional dishonesty, where the broker knowingly withholds critical information to deceive the investor. Both forms of misrepresentation can significantly impact your financial well-being and lead to substantial losses.

Ponzi Schemes

Ponzi schemes promise high returns with little risk. These scams use funds from new investors to pay earlier investors, creating an unsustainable financial loop. Remember, if it seems too good to be true, it probably is. For more, check out this guide from FINRA.

Unsuitable Recommendations

According to FINRA Rule 2111, brokers must ensure their recommendations are suitable for their clients. This involves understanding the investor’s financial status, investment experience, and objectives. Unsuitable recommendations can lead to inappropriate investments that do not match your financial goals.

Asset Allocation

Asset allocation is crucial for a balanced investment portfolio. It involves dividing investments among different asset categories, such as stocks, bonds, and cash. This diversification reduces overall risk and helps ensure more steady returns over time. Orange County investment fraud lawyers at Bakhtiari & Harrison repesent customers in asset allocation claims.

Artificial Intelligence (AI) and Investment Fraud

AI is becoming a tool for fraudsters to create sophisticated scams. They might use AI to forge investment opportunities or manipulate markets. Staying informed and vigilant can help protect your investments against these high-tech threats. Learn more from FINRA.

Excessive Trading

Excessive trading, also known as churning, involves frequent buying and selling to generate broker commissions rather than benefit your portfolio. To guard against this, regularly review account statements and be wary of unsolicited trading suggestions. More information is available here.

Identity Fraud

Identity fraud occurs when someone uses your personal information without permission for financial gain. It can lead to unauthorized transactions and damaged credit. Protect yourself by safeguarding your sensitive data and monitoring financial accounts. FINRA provides guidance on protecting your identity.

By understanding these common types of investment fraud, you can take measures to protect your financial interests and make smarter investment decisions.

Relevant Information for Victims of Investment Fraud

Investment fraud can cause severe financial losses. Orange County investment fraud lawyers at Bakhtiari & Harrison represent harmed investors. Victims need to know their rights and options. Legal help from Orange County investment fraud lawyers, can make a big difference. They help navigate through complex cases involving securities fraud, insider trading, and other financial deceptions. Understanding the legal process is crucial for those harmed by false statements and corporate fraud.

FINRA Arbitration

When you open an account with a broker-dealer, you often sign a FINRA arbitration agreement. This means any disputes will be resolved through FINRA arbitration rather than court. The process starts with filing a statement of claim. Then, both parties present their cases to arbitrators who make a decision called an Award.

Here’s a simple overview:

Filing a Claim: Begin by outlining your dispute.
Hearing: Present your evidence to the arbitrators.
Award: Arbitrators issue a binding decision.

If a brokerage firm does not pay the Award, it can face serious consequences, such as being barred from the industry.

Mediation & Settlement

Most investment fraud cases are settled before going to arbitration. Orange County investment fraud lawyers at Bakhtiari & Harrison represent harmed investors. Parties can choose to hire a professional mediator. This neutral third party helps them reach a mutual agreement. Alternatively, the parties can decide to settle on their own. Settlement is often faster and less stressful than arbitration.

FINRA BrokerCheck

Before choosing a broker, use FINRA BrokerCheck. This online tool provides information about a broker’s experience and background. It can alert you to any past misconduct. Checking this can safeguard you from future financial losses. Visit FINRA BrokerCheck to make informed decisions. Always ensure your broker has a clean record and a proven track record of trustworthy dealings.

Common Mistakes in Investment Fraud Cases

Investment fraud cases can be complex. Mistakes can lead to poor outcomes. Knowing these mistakes helps protect your interests.

Ignoring Evidence

Evidence is key in investment fraud cases. Ignoring it weakens your position. Collect all records, emails, and documents related to the investment. This information can show false statements or unauthorized trading. Keep everything in one place for easy access.

Even small details can make a big difference. An Orange County investment fraud lawyer can help you look at the evidence. They recognize patterns and identify signs of fraud.

Misunderstanding the Law

Federal securities law and investment rules are complex. Misunderstanding them can harm your case. Each state, including California, has its own regulations. Orange County investment fraud lawyers know local laws and ultimately the arbitrators deciding your case.

Focus on common types of fraud. These may include insider trading and unsuitable investments. A securities fraud lawyer will explain these concepts. They help you understand how the law applies to your case.

Failing to Seek Legal Help

Handling investment fraud cases on your own is risky. An experienced attorney can be your best ally. They know the legal process and have a track record with similar cases.

Here are reasons to hire an Orange County investment fraud lawyer:

Navigate the legal system
Increase your chance of success
Minimize financial losses

Initial consultations are often free. They give you an understanding of your situation and the next steps. Avoid the mistake of waiting too long. Seek help from a securities fraud attorney in Newport Beach or nearby areas to build a strong case.

The Role of an Investment Fraud Attorney

An Orange County investment fraud lawyer concentrates on helping victims of securities fraud. These Orange Couty investment fraud lawyers handle cases related to securities fraud, corporate fraud, and stock fraud. They offer services to individuals or groups who have suffered financial losses due to false statements or unauthorized trading.

Investment fraud attorneys are knowledgeable in federal securities law and understand the intricacies of securities fraud. They work to build a strong case and seek justice for their clients. Their goal is to ensure that victims receive compensation for their losses and help prevent such fraud from happening again.

Navigating the Legal Process

Navigating the legal process in an investment fraud case can be challenging. An experienced attorney guides clients through each step. The process begins with an initial consultation to understand the case details. The attorney then investigates to gather evidence, focusing on the common types of financial fraud such as insider trading and unsuitable investments.

The next steps involve filing legal documents and preparing for court. The attorney also communicates with the opposing party to explore settlement options. Throughout the process, the lawyer keeps clients informed and prepared for what to expect.

Mitigating Penalties

Mitigating penalties is a key role of an investment fraud attorney. They aim to reduce the consequences for their clients, whether they are victims or accused of fraud. For victims, this involves seeking compensation and recovery of financial losses. For those accused, the attorney works to establish a reasonable doubt, possibly reducing punitive damages or criminal penalties.

Attorneys with a strong track record use their knowledge of securities fraud law to defend their clients. They negotiate with prosecutors and argue for leniency, ensuring that penalties are fair and just.

Protecting Clients’ Rights

Protecting clients’ rights is a top priority for investment fraud attorneys. They ensure that their clients receive fair treatment throughout the legal process. Orange County investment fraud lawyers at Bakhtiari & Harrison represent individual and institutional investors. This includes addressing any unauthorized trading or unsuitable investments that might have occurred.

The attorney acts as an advocate for the client, ensuring their legal rights are upheld. They work to defend against any allegations of criminal offenses or excessive trading. Their expertise in federal offenses and real estate fraud helps protect clients from injustices.

An Orange County investment fraud lawyer is critical in helping clients navigate legal challenges, reduce penalties, and protect their rights. If you are in Newport Beach or anywhere in Orange County, seeking the help of an experienced Orange County investment fraud lawyer can make a significant difference in your case.

Importance of Consulting an Experienced Attorney

Investing is a way to grow wealth, but it carries risks. If faced with securities fraud in Orange County, it’s vital to find experienced Orange County investment fraud lawyers. These attorneys understand the intricacies of securities law and can advise you on issues like insider trading and unauthorized trading. Orange County investment fraud lawyers at Bakhtiari & Harrison represent harmed investors. They guide victims step by step through the legal process. Choose an Orange County investmetn fraud laywer with a strong track record to help reclaim any financial losses.

Understanding Legal Options

When securities fraud occurs, knowing your legal options is key. An experienced attorney in Orange County will explain common types of fraud, such as stock fraud and corporate fraud. They can help you determine if actions like false statements or unsuitable investments have harmed you. Orange County investment fraud lawyers at Bakhtiari & Harrison will you help you understand the process. With their guidance, you can better understand federal securities law and how it applies to your case. They will also prepare you for each stage of the legal process, from initial consultation to presenting evidence convincing enough to eliminate reasonable doubt.

Pursuing Damages

Victims of investment fraud often suffer financially. Pursuing damages is crucial for recovery. Attorneys in Newport Beach can seek compensatory damages to cover any losses. They may also pursue punitive damages if the fraud was blatant. Orange County investment fraud lawyers at Bakhtiari & Harrison represent investors in damage claims. This ensures the wrongdoer is punished. Legal fees can add up, but some firms work on a contingency basis, lessening upfront costs. Seeking advice from seasoned securities fraud attorneys ensures the legal pursuit is comprehensive. This might involve civil or criminal action against those guilty of federal offenses or criminal offenses.

By following these guidelines, you can embark on a journey towards justice and financial recovery. Always consult with an experienced attorney to explore all your options fully.

Understanding Legal Options

Understanding your legal options is crucial if you are a victim and searching for an Orange County investment fraud lawyer. Investment fraud can include securities fraud, insider trading, or unsuitable investments. Orange County investment fraud lawyers at Bakhtiari & Harrison can help navigate these complex issues.

Here are some common types of investment fraud:

Unauthorized Trading: Buying or selling stocks without permission.
False Statements: Misleading investors with incorrect information.
Corporate Fraud: Dishonest business practices affecting investors.
Fraudulent Misrepresentations: A stockbroker provides false or misleading information to investors regarding a stock or investment opportunity.

Seeking legal help can make a difference. A seasoned securities fraud attorney offers guidance through the legal process. They can evaluate your case in an initial consultation and decide on the best course of action.

Many attorneys in Newport Beach specialize in these areas. Orange County investment fraud lawyers at Bakhtiari & Harrison have a track record of dealing with financial losses and may pursue punitive damages if necessary. Legal action often involves proving the fraud.

For those seeking a knowledgeable Orange County investment fraud lawyer to ensure your rights are protected, whether dealing with credit card fraud or federal offenses, the right Orange County investment fraud lawyer can easily guide you through federal securities laws.

Client-Centered Approach at Bakhtiari & Harrison

Orange County investment fraud lawyers at Bakhtiari & Harrison believe in putting the client first and providing top-notch legal advice. Our firm is dedicated to guiding you through the legal process with care and attention. We focus on understanding your unique situation and needs to tailor our services accordingly. Whether you’re facing securities fraud, investment issues, or need a criminal defense lawyer, our commitment is to help you every step of the way.

Transparency in Communication

We pride ourselves on being open and honest with our clients. Clear communication is key to any legal relationship. We ensure you understand the complexities of your case, including potential challenges and outcomes. Regular updates are provided, so you’re never left in the dark. This transparency builds trust and confidence, which we value deeply.

Proven Expertise

Ryan Bakhtiari is a highly skilled Orange County investment fraud lawyer focusing in securities and investment fraud law. With years of experience under his belt, he has built a notable reputation for effectively representing investors against financial firms for various malpractices, including unauthorized trading and stock fraud.

Notably, Ryan served as the president of the Financial Industry Regulatory Authority’s National Arbitration and Mediation Committee (NAMC), an advisory body that makes recommendations on rules and procedures related to FINRA’s dispute resolution processes. This position underscores his profound understanding of the industry and his commitment to improving investor protection. Ryan’s expertise allows him to navigate the complexities of federal and state securities laws, providing clients with informed guidance throughout the legal process. Orange County investment fraud lawyer from Bakhtiari & Harrison are dedicated to advocating for investor rights has made him a trusted figure in the legal community, enabling him to secure favorable outcomes for those affected by investment fraud.

David Harrison is a distinguished Orange County investment fraud lawyer and partner at Bakhtiari & Harrison, focusing on investment fraud law and litigation. With extensive experience in both arbitration and litigation, he adeptly represents clients before regulatory bodies such as FINRA and in state and federal courts. David’s profound understanding of securities regulations and law is rooted in a robust educational background and diverse career trajectory.

His professional journey began as a registered representative at Shearson Lehman Brothers, where he earned his Series Seven license, establishing a strong foundation in the world of financial services. Afterward, he served as an in-house attorney at Morgan Stanley Dean Witter, where he defended the firm against allegations of stockbroker fraud, further enhancing his expertise in securities law.

David also served as an Assistant District Attorney in New York City. This role honed his litigation skills and provided him with invaluable experience in prosecuting complex cases. The skills he developed during this time effectively translate into his current work, allowing him to vigorously advocate for victims of investment fraud, ensuring that their rights are protected and justice is pursued. David’s unique blend of experiences enables him to navigate the complexities of investment fraud cases with exceptional proficiency, making him a formidable ally for those seeking redress.

Credentials of Our Orange County Investment Fraud Lawyers:

Name	Concentration	Experience
Ryan Bakhtiari	Securities & Investment Fraud	Extensive knowledge of financial law and the securities markets
David Harrison	Securities & Investment Fraud	Significant experience in FINRA arbitration and regulatory proceedings

Contact Our Experienced Orange County Investment Fraud Lawyers Now

Orange County investment fraud lawyer from Bakhtiari & Harrison have built an outstanding reputation for fiercely advocating for victims of fraud. Their relentless pursuit of accountability and integrity has made them a formidable presence for brokerage firms while also earning them deep respect from FINRA arbitrators across California.

Orange County investment fraud lawyers from Bakhtiari & Harrison. are dedicated to serving the diverse communities across Orange County, ensuring that residents have access to experienced legal representation in investment fraud and securities litigation matters. Your success is our priority. We have a record of success and aim to win cases that result in fair compensation, including punitive damages where applicable.

If you’re a victim of investment fraud or need help with a corporate fraud case, contact us. We offer a free one-hour consultation to discuss your case and explore your options for achieving the best possible outcome. With us, you’re in capable and caring hands.

Orange County Investment Fraud Lawyer

If you’ve been the victim of investment fraud, consult an Orange County investment fraud lawyer at Bakhtiari & Harrison for a free initial consultation. We represent victims of financial and investment disputes throughout California, including Anaheim Hills, Buena Park, Costa Mesa, Coto de Caza, Dana Point, Fullerton, Hidden Hills, Huntington Beach, Irvine, Laguna Beach, Laguna Niguel, Los Angeles, Manhattan Beach, Mission Viejo, Newport Beach, Orange, Pacific Palisades, Palm Springs, Pasadena, San Diego, Seal Beach, Tustin, Westminster, Yorba Linda, and other locations. We will work tirelessly in pursuit of financial compensation for your investment losses. Consult an Orange County investment fraud lawyer from Bakhtiari & Harrison.