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.

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.

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.

Berkeley CA Investment Fraud Lawyers

Welcome to Bakhtiari & Harrison, Berkeley CA investment fraud lawyers and your trusted partners in the battle against investment fraud. We are committed to representing investors who have fallen victim to securities fraud and have suffered financial losses due to the negligence or misconduct of stockbrokers and financial advisors. Our goal is to help you recover your financial footing while ensuring that those responsible for your losses are held accountable. With our considerable experience and steadfast dedication, we are here to guide you through the complexities of investment fraud, helping you achieve the justice you rightfully seek.

Table of Contents

The Stakes

You’ve worked hard to build your investment portfolio, trusting your stockbroker or financial advisor to manage your assets responsibly. But what happens when that trust is broken? When your financial advisor engages in practices that put your investments at risk, the results can be devastating.

Berkeley CA Investment Fraud Lawyers: Protecting Your Financial Future

At Bakhtiari & Harrison, we recognize that falling victim to investment fraud, especially securities fraud, can be a daunting experience. Our dedicated team is prepared to assist you through the complex legal landscape, concentrating on recovering your financial losses. With decades of experience in complex litigation and a wealth of knowledge in managing investment fraud cases, we are committed to safeguarding your interests at every step of the process.

Common Violations of Deceitful Practices

When it comes to investment fraud, there are several traditional causes of action that can be pursued. Recognizing the warning signs of deceitful practices is essential to protect yourself and your investments.

Unsuitable Recommendations: Advising on investments that do not align with your financial situation and objectives can be a significant breach of fiduciary duties.
Unauthorized Trading: Executing trades without your consent.
Misrepresentations: Providing false statements or misleading information regarding investment opportunities.
Ponzi Schemes: Fraudulent investment operations where returns are paid from new investors’ contributions.
Front Running: Executing orders on a security for its own account while taking advantage of advanced knowledge of pending orders.
Failure to Monitor: Neglecting to keep track of your investments and make necessary adjustments.
Failure to Diversify: Not spreading investments across various assets to minimize risk.
Lack of Risk Management: Neglecting to adopt strategies that safeguard your investments from potential significant losses. Client reviews often highlight the importance of risk management in avoiding such pitfalls and emphasize the value of working with advisors who prioritize protective measures in their investment strategies.

When it comes to safeguarding your hard-earned money, the dangers of stock price manipulation and insider trading can lead to substantial financial losses. Unscrupulous individuals may engage in unethical practices, such as selling securities under false pretenses or manipulating market conditions, which can qualify as investment fraud. If you suspect you have fallen victim to such actions, seek a knowledgeable investment fraud attorney. They can help you navigate the intricate landscape of financial fraud, protect your rights, and maximize your chances of recovering your losses.

Regain Control

At our firm, we pride ourselves on providing individualized legal counsel to clients who have suffered from investment fraud. Our process includes a thorough analysis of your investment history and the actions of your financial advisor. By leveraging our skills as securities fraud attorneys, we build a robust case that highlights any negligence or fraudulent activity, ensuring that you, whether you’re an individual investor or an earlier investor, have the best chance of recovering your losses.

Benefits of Legal Representation

With Bakhtiari & Harrison by your side, you gain:

Experienced Guidance: Navigating the complex legal landscape of investment fraud.
Aggressive Representation: Fighting for your rights and holding wrongdoers accountable.
Peace of Mind: Knowing that experienced attorneys are working tirelessly to recover your losses.

Take Action

If you’ve lost money in the stock market due to the actions of your stockbroker or financial advisor, it’s crucial to take legal action. Victims of investment fraud, including those affected by unsuitable recommendations and misrepresentations, deserve justice and recovery. At Bakhtiari & Harrison, we understand the various types of investment fraud and can help you navigate your options. Don’t wait—contact us today to schedule a consultation and begin your journey toward financial recovery from examples of securities fraud.

FAQs on FINRA Arbitration

1. What is FINRA Arbitration? FINRA Arbitration is a method of resolving disputes in which an unbiased panel assesses the case and delivers a binding ruling. This process can be particularly useful for those who feel like victims of fraud, as it provides a formal avenue for seeking justice and compensation.

2. Who can file a FINRA Arbitration claim? Investors who have incurred financial losses as a result of deceptive investment practices by their broker or financial advisor may be eligible to file a claim..

3. How long does the FINRA Arbitration process take? The process generally takes about 12-18 months from filing to resolution.

4. What types of disputes can be resolved through FINRA Arbitration? Disputes against stockbrokers and brokerage firms usually involve investment fraud, negligence, unsuitable recommendations, unauthorized trading, and other misconduct.

5. Is there a cost associated with filing a FINRA Arbitration claim? Yes, there are filing fees and possibly other costs, but many attorneys work on a contingency basis.

6. What evidence is needed for a FINRA Arbitration claim? Documentation of the investments, communications with the broker, and records of financial losses.

7. Can I represent myself in FINRA Arbitration? While it’s possible, it’s generally advisable to have an investor fraud attorney due to the complexity of the process.

8. What happens if the arbitrator rules in my favor? You may be entitled to compensation for your financial harm, encompassing your losses, potential interest, and any attorney’s fees.

9. Can the decision in FINRA Arbitration be appealed? FINRA Arbitration decisions are generally final and binding with very limited grounds for appeal.

10. How do I start with a FINRA Arbitration claim? Contact an experienced investment fraud attorney, like those at Bakhtiari & Harrison, to evaluate your case and guide you through the process.

Berkeley CA investment fraud lawyers at Bakhtiari & Harrison, we leverage our extensive experience to help you navigate the complexities of investment fraud litigation.

If you’ve been the victim of investment fraud, contact the Berkeley CA investment fraud lawyers of Bakhtiari & Harrison for a free initial consultation. Berkeley CA investment fraud lawyers at the firm represent victims of financial and investment fraud throughout California, including Alameda, Alamo, Albany, Atherton, Belmont, Berkeley, Burlingame, Corte Madera, Cupertino, Foster City, Hillsborough, Lafayette, Larkspur, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Moraga, Mountain View, Oakland, Orinda, Pacific Heights, Palo Alto, Piedmont, Pleasanton, San Anselmo, San Carlos, San Francisco, San Ramon, Santa Clara, Santa Rosa, Saratoga, Sunnyvale, Walnut Creek, and other locations. Berkeley CA investment fraud lawyers work tirelessly in pursuit of financial compensation for your investment losses.