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.

Brentwood California Investment Fraud Attorneys

Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you. Investment fraud is a big problem for many investors. Investment fraud can cause large losses and cause the public to lose trust in the financial system.

You may have heard terms like churning, selling away, and unauthorized trading. These are all types of investment fraud. Knowing about them is the first step to protecting your investments. But what if you’ve already been scammed? This is where stockbroker & investment fraud attorneys can help. They help victims of investment fraud understand and deal with the legal system.

In this article, we’ll talk about what these attorneys do. We’ll look at the types of investment fraud and how these lawyers can help you. We’ll also give tips on picking the right attorney for your case.

If you are a victim of investment fraud or want to keep your money safe, this guide is for you. Let’s get started.

Understanding California Investment Fraud and Its Consequences

Investment fraud means tricking people in the stock or commodities markets. It makes investors make choices based on lies, leading to significant losses. Brentwood California stockbroker and investment fraud attorneys at Bakhtiari & Harrison can assist you.

Fraudsters use many tricks to lure investors. They might promise high returns with low risk, use confusing words, or push investors to act fast. Knowing these tricks can help you protect your money. Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you.

Investment fraud can cause:

Emotional stress
Loss of trust in banks and financial advisors
A damaged credit score
Trouble getting future investments

Investment fraud hurts more than just individual victims. It can weaken the financial market, leading to less confidence and economic problems.

Knowing the effects of investment fraud is the first step to stopping it. Next, we’ll see how investment fraud attorneys can help victims get justice and their money back.

The Role of Stockbroker & Investment Fraud Attorneys in Brentwood California

Stockbroker and investment fraud attorneys protect investors’ rights and help people who have lost money due to fraud or negligence. These lawyers know all about securities laws and financial rules. They also help clients with the legal process, file complaints with FINRA, and represent them in arbitration.

Investment fraud attorneys in Brentwood help clients get their money back. They collect evidence, build strong cases, and negotiate deals.

The traditional place to bring a claim is through FINRA arbitration. These lawyers work hard to hold fraudsters responsible and help victims get back on their feet. Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you.

Common Types of Investment Fraud

Investment fraud comes in many forms. Here are some common types:

Churning
Selling away
Unauthorized trading
Breach of fiduciary duty
Misrepresentations
Selling products for higher commissions
Selling illiquid investments

Each type has its own ways of hurting investors.

Churning

Churning means brokers make too many trades to earn more commissions. This practice can drain your portfolio because of high transaction costs. Churning is illegal and against FINRA rules. If you suspect churning, talk to an investment fraud attorney right away.

Selling Away

Selling away happens when brokers sell investments not held by their firm. These deals often involve high risks and are done without the firm’s knowledge. Selling away is a serious rule violation and can cause significant losses. If this happens to you, seek legal advice quickly.

Unauthorized Trading

Unauthorized trading is when a broker trades without your consent. This breaks investor rights and can lead to unwanted risks and losses. Investors can sue brokers for unauthorized trading. An investment fraud attorney can help you recover losses and hold the broker accountable.

Breach of Fiduciary Duty

Brokers must act in the best interest of their clients. When they don’t, it’s a breach of fiduciary duty. This can lead to bad investment advice and high fees. If you think your broker has breached their duty, consult an attorney.

Misrepresentations

Misrepresentations are false or misleading statements about investments. This can make you invest based on wrong information, causing big losses. Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you. If you were misled, an investment fraud attorney can help you seek justice.

Selling Products for Higher Commissions

Some brokers push products that pay them higher commissions, even if they’re not good for you. This can lead to bad investment choices. If you think your broker is putting their profits over your best interests, get legal advice.

Selling Illiquid Investments

Illiquid investments are hard to sell or turn into cash. Brokers may push these for higher commissions. However, they may not be suitable for investors who need access to their money. Talk to an attorney if you’ve been sold illiquid investments that don’t suit your needs.

Elderly Investors are More Vulnerable

Older investors, especially wealthy ones, are easy targets for bad brokers. They may have a lot of money and be less familiar with new financial products. Unethical brokers might take advantage of their trust. Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you. Family members, especially children, should help monitor their parent’s investments. This can prevent elder abuse and ensure everything is correct. FINRA has rules to protect older investors from exploitation.

The Importance of Asset Allocation and Risk Management

Asset allocation means spreading your investments across different types to reduce risk. However, bad advice can lead to poor allocation and unnecessary risks. If you suspect lousy advice, consult an investment fraud attorney.

Risk management involves finding, assessing, and controlling risks. A good strategy can protect your investments. Attorneys can help you understand your risk tolerance and ensure your investments match it. If you lost money due to bad risk management, legal help can recover your assets.

Navigating FINRA Arbitration

FINRA oversees the securities industry and resolves disputes through arbitration. This process is complex and needs a deep understanding of securities laws. Investment fraud attorneys can guide you through arbitration, helping you prepare your case and gather evidence. Their experience can improve your chances of winning.

If you face a FINRA arbitration, seek legal advice. An experienced attorney can explain your rights and options. They will help you through arbitration and protect your interests. Time is crucial, so get help quickly to improve your chances of recovering your losses. Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you.

Choosing the Right Brentwood California Investment Fraud Attorney

Picking the right attorney is crucial. Here’s what to look for:

Experience: Find an attorney with lots of experience in investment fraud cases.
Track Record: Check their success rate with similar cases.
Communication: They should explain legal terms clearly and keep you updated.
Fees: Understand their fee structure. Some work on a contingency basis, getting paid only if they win your case.

Choosing the right attorney can make a difference. Brentwood California investment fraud attorneys at Bakhtiari & Harrison can assist you. The amount of time an attorney takes to speak to you could be a red flag. Are they taking the time to engage with you, or are they curt and abrupt? Take your time, research well, and choose wisely.

Preventing Investment Scams

Investment scams can be devastating, but you can protect yourself. Here are some tips:

Stay Informed: Keep up with the latest scams. Knowledge is your best defense.
Do Your Research: Investigate any investment opportunity before committing money. Use FINRA’s BrokerCheck to check out brokers and advisors.
Be Skeptical: If it sounds too good to be true, it probably is. Watch out for promises of high returns with low risk.
Seek Professional Advice: Consult a financial advisor or an investment fraud attorney before making big investment decisions.

Preventing scams starts with you. Stay alert, informed, and don’t be afraid to ask questions.

Case Studies: Successful Fraud Claims

Investment fraud cases can be tough, but with the right help, victims can recover. Here are some examples:

A Brentwood investor was caught in a Ponzi scheme. With an attorney’s help, they got back a big part of their losses through arbitration. The attorney’s investigation and negotiation were key to success.

A broker sold an elderly investor terrible investments. The attorney argued that the broker ignored the client’s risk tolerance. The case was settled in favor of the investor, resulting in a substantial recovery.

These cases show the importance of hiring an experienced investment fraud attorney. They have the knowledge and skills to fight for your rights.

Brentwood California Investment Fraud Attorneys at Bakhtiari & Harrison can Assist You in Protecting Your Investments

Investment fraud can hurt your finances badly. Stay vigilant and informed to protect your money. Know your rights and the legal processes involved.

If you think you’ve been scammed, seek legal advice fast. Brentwood investment fraud attorneys can guide you, from filing a complaint to fighting for your money. Protecting your investments needs a proactive approach. Stay informed, check your accounts often, and get professional help when needed.

Also, children of elderly investors should get involved in their parents’ finances to prevent elder abuse. FINRA’s rules support protecting older investors, highlighting the need for vigilance and legal support to keep your finances safe.

Bakhtiari & Harrison – Trusted Brentwood California Investment Fraudy Attorneys

Bakhtiari & Harrison is an AV-rated, battle-tested law firm focused on the worldwide representation of clients in complex arbitration, litigation, and related legal services in securities industry matters. Brentwood California stockbroker and investment fraud attorneys at Bakhtiari & Harrison can assist you.

The firm’s partners have extensive experience in securities, employment and regulatory matters. Our focus is on delivering strategic and creative client-centric solutions.

We represent high net-worth individuals, institutions, and hedge funds in securities arbitration and litigation claims before FINRA (Financial Industry Regulatory Authority), AAA (American Arbitration Association), other arbitration providers, and state and federal courts.

The firm represents financial services professionals, registered investment advisors and broker-dealers in employment matters, industry disputes and regulatory investigations.