Burbank CA FINRA Attorneys Fighting to Recover Your Losses
You built your savings through years of hard work, careful planning, and sacrifice. You placed that nest egg—your future—into the hands of a financial advisor, trusting them to navigate the complexities of the market with your best interests as their compass. That trust is the bedrock of the investor-advisor relationship. When it’s broken, the financial loss is only part of the story. The other part is a profound sense of betrayal, confusion, and anxiety about what comes next.
You’re looking at account statements that don’t make sense, showing losses that can’t be explained away by a volatile market. The retirement you envisioned is suddenly at risk. The security you worked so hard to achieve feels like it’s slipping away. You feel isolated, facing a massive brokerage firm with seemingly endless resources. This is not a fair fight, and you know it.
At Bakhtiari & Harrison, we want to be clear: You are not alone, and you are not powerless. The system that makes you feel overwhelmed has a specific path to justice, and we are the guides who can lead you through it. We are not just lawyers; we are dedicated investor advocates. Our mission as a premier Burbank CA FINRA Attorney is to hold negligent brokers and their firms accountable and fight to recover the money you rightfully earned.
The Advocate You Need: What a FINRA Attorney Actually Does
Many people believe a lawyer’s job is simply to argue in a courtroom. For a FINRA Attorney whose practice is dedicated to this field, the role is far more intricate and strategic. We act as your champion in four distinct and critical ways, leveling the playing field against powerful financial institutions.
1. Your Private Investigator
Before any legal argument is made, the truth must be uncovered. Brokerage firms will not simply admit wrongdoing. Our first job is to become your private investigator. We dive deep into your financial history, analyzing years of account statements, trade confirmations, and performance reports. We scrutinize every email, text message, and note from your communications with your broker.
We know what we’re looking for: patterns of excessive trading, the use of high-risk products that didn’t match your profile, and the subtle but crucial differences between what you were told and what was actually done with your money. We use the discovery process to compel the brokerage firm to turn over internal documents, compliance manuals, and the broker’s disciplinary history—evidence that they would never voluntarily provide.
2. Your Legal Strategist
Once we have the evidence, we build the case. This is where deep knowledge of securities law becomes indispensable. We connect the dots between the evidence we’ve uncovered and specific violations of FINRA rules, SEC regulations, and state securities laws. Was it a breach of the Suitability Rule? Was it a violation of their fiduciary duty? Did the firm fail in its legal obligation to supervise its employee?
We construct a powerful narrative—your Statement of Claim—that clearly and persuasively tells the story of the misconduct to the arbitration panel. This legal strategy is the blueprint for your case, designed to preempt the defense tactics of the brokerage firm and position your claim for the highest probability of success.
3. Your Courtroom Advocate
The final arbitration hearing is where your case is presented. Our role here is to be your unwavering advocate. We present the evidence in a clear, compelling manner to the arbitrators. We deliver powerful opening and closing statements that frame the narrative of your case. Most importantly, we conduct a sharp cross-examination of the stockbroker and their managers. We know how to ask the tough questions, expose inconsistencies in their testimony, and dismantle their attempts to blame the market or, worse, blame you. This is the culmination of our investigation and strategy, where we fight to ensure the panel understands the full extent of the harm you suffered.
4. Your Skilled Negotiator
While we prepare every case as if it will go to a final hearing, the reality is that many cases settle beforehand. Brokerage firms often want to avoid the risk and expense of a full arbitration. We act as your skilled negotiator throughout the process, particularly during formal mediation. Because we have built such a strong case through our investigation and legal strategy, we negotiate from a position of strength. We advise you on settlement offers, protect you from lowball tactics, and work to achieve a favorable resolution that allows you to recover your losses without the stress of a final hearing.
Demystifying the Path to Justice: The FINRA Arbitration Process
When you opened your brokerage account, you signed an agreement—often buried in dozens of pages of fine print—stating that any dispute you have with the firm will be resolved not in a court of law, but through FINRA Dispute Resolution. This is a mandatory, legally binding arbitration process. Understanding its stages is the first step toward taking back control.
Step 1: The Statement of Claim and Filing
This is the beginning of the formal process. Your FINRA Attorney will draft a comprehensive document called the Statement of Claim. This is more than just a complaint; it’s a detailed narrative that outlines the facts of your case, the history of your relationship with the broker, the specific investments at issue, the FINRA rules that were violated, and a calculation of your financial damages. This document is filed with FINRA, and a copy is served on the brokerage firm. The firm then has 45 days to file a response, known as the Statement of Answer.
Step 2: Arbitrator Selection
Unlike a court case with a judge and jury, your case will be heard by a panel of one or three FINRA arbitrators. FINRA provides both parties with a list of potential arbitrators from its roster. These individuals can be attorneys (known as “public” arbitrators) or industry professionals (known as “non-public” arbitrators). Both sides can rank the arbitrators in order of preference and can also strike a certain number of names from the list for any reason. Your attorney will carefully research each potential arbitrator’s background and past decisions to select a panel that is most likely to be fair and impartial to your case.
Step 3: The Discovery Phase
This is the longest and often most critical phase of the process. It’s where both sides exchange information and evidence. We will send the brokerage firm a detailed request for documents, demanding everything from your broker’s emails and commission runs to the firm’s internal audits and compliance reports. They will, in turn, request documents from you. The brokerage firm’s lawyers will often try to delay or limit what they turn over. A key part of our job is to fight these battles, filing motions to compel the production of evidence that is crucial to proving your case. This is where we often find the “smoking gun.”
Step 4: Mediation (The Opportunity for Settlement)
At any point, the parties can agree to mediate the case. Mediation is a confidential negotiation session facilitated by a neutral third-party mediator. The mediator doesn’t make a decision but helps both sides explore the strengths and weaknesses of their case and find a potential settlement agreement. It’s a voluntary process, but it can be a very effective way to resolve a case and achieve a recovery without proceeding to a final, binding hearing. A strong, well-prepared case is your biggest asset heading into mediation.
Step 5: The Final Arbitration Hearing
If the case doesn’t settle, it proceeds to the final hearing. This is a private proceeding that functions like a trial. Both sides will make opening statements, present evidence, call witnesses to testify, and cross-examine the other side’s witnesses. You will likely be called to testify and tell your story to the panel. Your attorney will present your entire case and conclude with a closing argument summarizing the evidence and asking the panel to award you damages.
Step 6: The Award
Within 30 days of the hearing’s conclusion, the arbitration panel will render its decision, known as an “Award.” The Award will state who won and the amount of damages, if any, to be paid. FINRA arbitration awards are legally binding and extremely difficult to appeal. Once the Award is issued, the brokerage firm is required to pay it promptly.
Identifying Financial Malpractice: Types of Strong FINRA Cases
While every case is unique, most successful FINRA claims fall into several established categories of broker misconduct. If your situation resembles any of the following, you may have a strong case for recovering your losses.
Unsuitable Investment Recommendations
This is one of the most common and powerful claims. FINRA Rule 2111 (the “Suitability Rule”) requires a broker to have a reasonable basis to believe that a recommended investment or strategy is suitable for you, based on your age, financial situation, other investments, tax status, investment objectives, and risk tolerance. A strong case exists when a broker pushes a retired, income-seeking investor into a speculative, high-risk tech stock, or recommends complex and risky options strategies to a novice investor with a low risk tolerance. The key is the mismatch between you and the investment.
Overconcentration
Diversification is a fundamental principle of safe investing. Overconcentration occurs when a broker fails to adequately diversify your portfolio, putting too many of your assets into a single stock, a single sector (like energy or tech), or a single speculative asset class. When a broker puts 50% or more of your retirement savings into their own company’s stock or a volatile oil and gas limited partnership, they expose you to catastrophic risk. If that one investment fails, your entire portfolio is devastated. This is a clear breach of duty and forms the basis of a very strong claim.
Churning and Excessive Trading
Your broker should only make trades that have a legitimate investment purpose for you. Churning is a deceptive practice where a broker trades excessively in your account primarily to generate commissions for themselves. To prove churning, we look at the “turnover rate” (how many times your assets are bought and sold) and the “cost-equity ratio” (how much your account must appreciate just to cover the commissions and fees). If your account is being traded constantly with high transaction costs but is not achieving your investment goals, you are likely a victim of churning.
Misrepresentation & Omission
This is about lies and half-truths. Misrepresentation occurs when a broker makes false statements about an investment—for example, calling a speculative private placement “a safe, guaranteed investment like a CD.” Omission is just as damaging; it’s the failure to disclose critical risks. An example would be failing to tell you that a bond is a “junk bond” with a high risk of default, or not explaining that a variable annuity has massive surrender charges and hidden fees. You have a right to make decisions based on complete and accurate information.
Failure to Supervise
Brokerage firms are not just employers; they are legally required to supervise their brokers to ensure they are complying with securities rules and regulations. A “failure to supervise” claim holds the entire firm responsible for the actions of its rogue employee. We can prove this by showing that the firm ignored red flags, such as a high number of customer complaints against the broker, failed to enforce its own compliance procedures, or encouraged a “sales-at-all-costs” culture. This is a powerful claim because the firm often has the “deep pockets” to pay a significant award.
Your Future Is Worth Fighting For 
The path forward may seem daunting, but you do not have to walk it alone. The cost of inaction is simply too high. Without an advocate, your losses may become permanent, the broker who betrayed your trust will face no consequences, and the stress and uncertainty will continue to dominate your life.
But there is another path. By taking action, you can reclaim your story. Success means more than just a check; it’s about achieving justice, holding the responsible parties accountable, and restoring your peace of mind. It’s about getting back on track toward the financial future you planned and deserved. At Bakhtiari & Harrison, our simple plan is to guide you down that path to success.
- Free & Confidential Consultation: We listen to your story and give you a clear, honest assessment of your claim.
- We Build Your Case: We handle the complex investigation and legal filings, taking the burden off your shoulders.
- We Fight For Your Recovery: We advocate for you relentlessly at every stage, from settlement negotiations to the final hearing.
Don’t let a broker’s bad advice define your future. Take the first step toward justice today.
Contact Us Now for a Free Consultation
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Questions & Answers on FINRA Attorneys and Arbitration
What is a FINRA Attorney? A FINRA Attorney is a lawyer who concentrates their practice exclusively on the unique legal arena of securities arbitration governed by the Financial Industry Regulatory Authority. Unlike a general practice lawyer, they possess deep knowledge of FINRA’s complex rules of procedure, the specific FINRA and SEC regulations brokers must follow, and the common tactics brokerage firms use to defend themselves. Their role involves meticulously analyzing financial records, building a compelling legal narrative of misconduct, and advocating for wronged investors in a forum that is very different from traditional court. Hiring a FINRA attorney with this specific focus is crucial because it levels the playing field against the powerful legal teams of large financial institutions.
Why do I need a Burbank CA FINRA Attorney? You need a Burbank CA FINRA Attorney because investor claims against brokerage firms must be resolved through FINRA’s specific arbitration system, not in a traditional court. FINRA rules dictate that the hearing location is typically set in the city where the investor lived when the events occurred.
Having a local attorney means they are familiar with the local pool of arbitrators and can conveniently meet with you to prepare your case. More importantly, a dedicated Burbank CA FINRA Attorney understands the specific investor community and is focused on providing accessible, knowledgeable legal representation to individuals who have been wronged by firms operating in this area, ensuring you have a dedicated advocate in your corner.
What is FINRA arbitration? FINRA arbitration is a mandatory, private, and legally binding dispute resolution process that is used to resolve virtually all conflicts between investors and their brokerage firms. When you open a brokerage account, the new account agreement you sign contains a pre-dispute arbitration clause that waives your right to sue in court.
Instead of a judge and jury, your case is heard by a panel of one or three neutral arbitrators who are trained to decide securities disputes. The process is intended to be faster and more cost-effective than traditional litigation, but it has its own complex rules and procedures that require skilled navigation. The arbitrators’ final decision is called an “award” and is very difficult to appeal.
What does a FINRA Attorney do? A FINRA Attorney serves as an investor’s guide and champion through the entire arbitration process. Initially, they conduct a thorough investigation, analyzing account statements and communications to identify rule violations and calculate damages. They then draft and file the formal Statement of Claim to initiate the case. During the discovery phase, they fight to obtain crucial evidence from the brokerage firm. They represent the client in settlement negotiations and mediation, always aiming for a favorable outcome. If the case proceeds to a hearing, the attorney presents the evidence, cross-examines the stockbroker, and makes a compelling legal argument to the arbitration panel to recover the client’s losses.
How much does a FINRA Attorney cost? The vast majority of reputable FINRA attorneys work on a contingency fee basis. This is a critical benefit for an investor who has already suffered significant financial losses. A contingency fee arrangement means you pay no upfront or hourly fees to the attorney. The law firm advances all the costs of litigation, such as filing fees, and other case expenses. The attorney’s payment is “contingent” upon success; they only receive a fee, which is a pre-agreed-upon percentage of the amount recovered, if they win your case and recover money for you. If there is no recovery, you owe no attorney’s fees.
What kind of misconduct can I sue for? Investors can file claims for a wide range of misconduct by brokers and firms. The most common grounds include recommending unsuitable investments that don’t match your risk profile, churning (excessive trading solely to generate commissions), overconcentrating your portfolio in a single, high-risk asset, and misrepresentation or omission (failing to disclose an investment’s risks or lying about them). Other actionable misconduct includes unauthorized trading, breach of fiduciary duty, and the firm’s failure to supervise its employees properly. Any action by a broker that violates FINRA’s rules of fair practice and causes you financial harm can be grounds for a claim.
What is an “unsuitable” investment? An “unsuitable” investment is one where there is a clear mismatch between the investment’s characteristics and the investor’s personal financial profile. FINRA’s suitability rule requires brokers to have a reasonable basis for believing their recommendation is appropriate for you. They must consider your age, income, net worth, investment experience, time horizon, and stated risk tolerance. For example, recommending a highly speculative, non-traded Real Estate Investment Trust (REIT) to an 85-year-old widow who needs her money for living expenses and has a very low risk tolerance would be a classic case of an unsuitable recommendation and a strong basis for a FINRA claim.
Can I sue my stockbroker directly? In a FINRA arbitration, you typically name both the individual stockbroker and the brokerage firm they work for as respondents. While the broker is the one who committed the misconduct, the brokerage firm is also liable under a legal doctrine called “respondeat superior” and for its own independent failure to supervise. Suing the firm is crucial because the firm is responsible for its employee’s actions and generally has the financial resources (and insurance) to pay a significant arbitration award. The individual broker may not have the means to pay, so holding the firm accountable is a key part of a successful recovery strategy.
What is the difference between FINRA arbitration and court? The differences are significant. FINRA arbitration is a private process decided by a panel of arbitrators, whereas court is a public forum with a judge and often a jury. The rules of evidence are more relaxed in arbitration than in court. The discovery process is typically more limited and faster. Perhaps most importantly, the arbitrators’ decision (the “award”) is final and binding with extremely limited grounds for appeal, unlike a court verdict which can often be appealed through multiple levels of the judicial system. While intended to be quicker, arbitration has its own unique complexities that demand skilled legal navigation.
Where will my FINRA arbitration hearing take place? FINRA has a “customer-friendly” rule regarding hearing locations. The hearing will be held in the FINRA hearing location nearest to where the investor resided when the dispute arose. For clients in the San Fernando Valley, this means the hearing would almost certainly be scheduled for the FINRA office in Los Angeles. This prevents a large Wall Street firm from forcing a Burbank resident to travel to New York to have their case heard. This rule ensures that the process is accessible and convenient for the wronged investor, allowing them to pursue their claim without incurring excessive travel costs.
How long does the FINRA arbitration process take? While it is designed to be faster than court litigation, the process still requires patience. On average, a standard FINRA arbitration case takes approximately 12 to 16 months from the date the Statement of Claim is filed to the issuance of a final award by the arbitrators. The timeline can be shorter if the parties reach a settlement, which often happens after the discovery phase or during mediation. More complex cases involving multiple parties or extensive discovery may take longer, potentially up to 18 months or more. Your FINRA Attorney will manage the case and keep you informed of the timeline and key milestones throughout the process.
Can I recover all of my investment losses? The primary goal of a FINRA arbitration claim is to recover your net out-of-pocket losses. This is the amount of money you invested minus any funds you withdrew, calculated to make you “whole” again. In addition to these actual damages, arbitrators have the authority to award interest on the losses, as well as costs associated with the arbitration, such as filing fees. In some exceptional cases involving egregious fraud, arbitrators may award punitive damages or attorneys’ fees; however, this is not a common practice. A successful claim should, at a minimum, aim to return you to the financial position you were in before the misconduct occurred.
What is a “breach of fiduciary duty”? A fiduciary duty is the highest standard of care in law. When a financial advisor is a “fiduciary,” they are legally and ethically bound to act solely in their client’s best interest, placing the client’s interests above their own. This means they must avoid conflicts of interest and provide complete and fair disclosure of all material facts.
A breach occurs when an advisor violates this trust—for example, by recommending an investment that pays them a higher commission but is not in the best interest of the client. While not all stockbrokers are held to this high standard in all situations, proving a breach of fiduciary duty is a very powerful basis for a claim.
What is churning? Churning is a fraudulent and unethical practice in which a stockbroker engages in excessive buying and selling within a client’s account, primarily to generate commissions for themselves, with little to no regard for the client’s investment objectives. It is essentially using the client’s account as a personal income stream. To prove churning, an attorney will present evidence of the broker’s control over the account and utilize statistical measures, such as the turnover rate and cost-to-equity ratio, to demonstrate that the level of trading activity was mathematically unsustainable and served no legitimate purpose for the investor.
Do I have to attend the arbitration hearing? Yes, as the claimant, your presence and testimony are essential to the success of your case. The arbitration hearing is your opportunity to speak directly to the arbitrators and tell them, in your own words, what happened—what the broker told you, what your investment goals were, and how the financial losses have impacted your life. While it can be an intimidating prospect, a key part of your FINRA Attorney’s job is to prepare you thoroughly for this. They will review potential questions, practice your testimony, and ensure you feel confident and ready to present your story clearly and truthfully to the panel.
What is a Statement of Claim? The Statement of Claim is the most important document your attorney will draft. It is the formal legal complaint that initiates the FINRA arbitration process. This document is much more than a simple form; it is a detailed and persuasive narrative that tells your story to the arbitrators. It will identify the parties involved, provide a factual background of your relationship with the broker, specify the investments at issue, clearly articulate the FINRA rules and legal duties that were violated (e.g., unsuitability, churning), and include a detailed calculation of your financial damages. A well-drafted Statement of Claim sets the tone for the entire case.
What is the FINRA discovery process? Discovery is the formal pre-hearing phase, during which both sides are legally required to exchange relevant information and documents. It is the fact-finding stage of the arbitration. Your attorney will send a comprehensive document request to the brokerage firm to obtain critical evidence like the broker’s emails about you, their commission reports, internal compliance reviews, and other customer complaints. The firm’s lawyers will often resist these requests, and your attorney must be prepared to file motions and argue before the arbitrators to compel the production of this vital information. Effective discovery is often where strong cases are won, as it can uncover definitive proof of misconduct.
Can my case settle before a hearing? Yes, a large percentage of FINRA arbitration cases are resolved through a settlement agreement before the final hearing. A settlement can happen at any point in the process, but it is most common after the discovery phase is complete, when both sides have a clear picture of the evidence and the strengths and weaknesses of the case. Many cases also settle during mediation, which is a formal negotiation conference led by a neutral mediator. A skilled FINRA Attorney will leverage the strength of your case to negotiate the best possible settlement while simultaneously preparing to win at the final hearing if a fair offer is not made.
What is an arbitration award? An arbitration award is the final, legally binding written decision issued by the FINRA arbitration panel after the conclusion of the hearing. The award will state the panel’s decision on the claims, specifying whether the brokerage firm is liable for damages and, if so, the exact amount they are required to pay to the investor. The award may also include interest, costs, and other forms of relief. Under FINRA rules, brokerage firms are required to pay awards within 30 days. These awards are extremely difficult to appeal and are considered final, providing closure for the wronged investor.
What evidence do I need for my case? The most crucial evidence in a FINRA case is your account documentation. You should gather all the monthly statements, trade confirmations, and year-end summaries you have for the specified period. Additionally, any written communication you have is vital—this includes emails, letters, and even text messages exchanged with your broker. If you took personal notes after meetings or phone calls, those can also be very helpful. Don’t worry if you don’t have everything; your FINRA Attorney will use the discovery process to obtain a complete set of records directly from the brokerage firm, but providing what you have at the start is exceptionally beneficial.
What does “failure to supervise” mean? “Failure to supervise” is a critical claim that holds the entire brokerage firm accountable, not just the individual broker or agent. All FINRA member firms have a strict, affirmative legal duty to establish and enforce a supervisory system designed to prevent and detect violations of securities rules by their employees. A firm can be found liable for failing to supervise if it ignores red flags (like numerous customer complaints against a broker), doesn’t adequately train its staff, fails to review broker-client communications, or fosters a high-pressure sales culture that encourages misconduct. This claim is powerful because it targets the firm’s systemic failures.
Why choose a dedicated FINRA Attorney over a general lawyer? Choosing a FINRA Attorney who dedicates their practice to this field is crucial because FINRA arbitration is a unique and self-contained legal world with its own distinct rulebook, procedures, and culture. A general practice lawyer unfamiliar with this specific forum will be at a significant disadvantage compared to the experienced defense attorneys hired by brokerage firms. A lawyer who focuses on this area understands the nuances of arbitrator selection, knows what evidence to look for in discovery, has experience cross-examining financial professionals, and is up-to-date on the latest arbitration decisions and regulatory changes. This focused knowledge dramatically increases your chances of a successful financial recovery.
How do I start a case with a Burbank CA FINRA Attorney? Starting a case is a straightforward and risk-free process. It begins with an initial consultation, which is always free and completely confidential. During this meeting, you will have the opportunity to tell your story and share your concerns with an experienced attorney. You should bring any account statements or documents you have. The attorney will listen, ask clarifying questions, and provide you with a professional and honest assessment of the strengths and weaknesses of your potential claim. If they believe you have a strong case and you decide to proceed, they will explain the contingency fee agreement and the next steps to formally get the process started.
What if my broker claims the losses were due to “market risk?” “Market risk” is the most common and predictable defense used by brokers and their firms. They will argue that all investments carry risk and that your losses are simply the result of a market downturn. However, a skilled FINRA Attorney knows how to dismantle this argument.
We prove that the losses were not caused by general market movements, but by the broker’s specific misconduct. We do this by demonstrating that the investments were unsuitable for you from the start, that your account was over-concentrated in a risky sector, or that the broker misrepresented the true nature of the risk. The case is not about eliminating risk, but about holding brokers accountable for exposing you to risks you never agreed to take.