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.

Hidden Hills FINRA Securities Attorney: Safeguarding Your Investments with Bakhtiari & Harrison

At Bakhtiari & Harrison, we understand the importance of trust when it comes to your financial future. Our firm, proudly AV rated, represents high net worth individuals who have been defrauded in securities matters. With a steadfast commitment to our clients and a thorough understanding of the complex financial landscape, we stand ready to defend your rights and help you recover your losses. Our experienced team serves clients in Hidden Hills and beyond, guiding them through the intricate FINRA arbitration process and fighting for justice on their behalf.

Understanding Securities Fraud

Securities fraud is a broad term encompassing a range of deceptive practices in the stock and commodities markets. These fraudulent activities can take various forms, including misrepresentations, insider trading, and Ponzi schemes. For high net worth individuals, the stakes are even higher, as significant amounts of money are often involved. The repercussions of such fraud can be devastating, leading to substantial financial losses and shaken confidence in the financial system.

Common Types of Securities Fraud

Misrepresentation and Omission of Material Facts:One of the most common forms of securities fraud is the misrepresentation or omission of material facts. This occurs when financial advisors or brokers provide false information or fail to disclose important information about an investment. Investors rely on this information to make informed decisions, and when it is inaccurate or incomplete, they can suffer significant losses.
Insider Trading:Insider trading involves buying or selling securities based on non-public, material information. This practice is illegal and undermines the integrity of the financial markets. High net worth individuals, who often have substantial investments, can be particularly vulnerable to the consequences of insider trading, as it can distort the market and lead to unfair advantages for those with access to privileged information.
Ponzi Schemes:Ponzi schemes are fraudulent investment operations where returns are paid to earlier investors using the capital of newer investors, rather than from profit earned by the operation of a legitimate business. These schemes inevitably collapse when there are not enough new investors to pay returns to earlier investors, leading to substantial losses for those involved.
Unauthorized Trading:Unauthorized trading occurs when a broker makes trades on an investor’s account without their permission. This can happen when a broker abuses their discretionary authority or engages in churning—excessive trading to generate commissions. Such practices can quickly deplete an investor’s funds and erode the trust between the investor and the broker.
Breach of Fiduciary Duty:Financial advisors and brokers have a fiduciary duty to act in their clients’ best interests. When they fail to do so, whether through negligence or intentional misconduct, they can be held liable for breach of fiduciary duty. This can include failing to diversify an investment portfolio, recommending unsuitable investments, or engaging in conflicts of interest.

How Bakhtiari & Harrison Can Help

At Bakhtiari & Harrison, we focus on representing high net worth individuals who have been victims of securities fraud. Our comprehensive approach ensures that our clients receive the best possible representation and support throughout the entire process. We have successfully represented NBA basketball players, MLB players, actors, musicians, and celebrities, demonstrating our ability to handle high-profile and complex cases.

Thorough Case Evaluation:We begin by conducting a thorough evaluation of your case. Our team will review all relevant documents, including account statements, trade confirmations, and correspondence with your broker or financial advisor. This allows us to identify any instances of fraud or misconduct and build a strong case on your behalf.
Navigating the FINRA Arbitration Process:The Financial Industry Regulatory Authority (FINRA) arbitration process is often the most effective way to resolve securities disputes. Our attorneys have extensive experience navigating this process, which includes filing a claim, responding to defenses, selecting arbitrators, participating in prehearing conferences, engaging in discovery, and presenting your case at the arbitration hearing. We will guide you through each step, ensuring that you understand your rights and options.
Expert Witnesses and Resources:To strengthen your case, we work with a network of expert witnesses and resources. These experts can provide testimony on industry standards, investment practices, and the specific nature of the fraud you experienced. Their insights can be invaluable in demonstrating the extent of the misconduct and the impact it had on your investments.
Aggressive Advocacy:Our attorneys are dedicated to aggressively advocating for your rights. We understand the financial and emotional toll that securities fraud can take, and we are committed to holding those responsible accountable. Whether through negotiation, mediation, or arbitration, we will fight tirelessly to secure the compensation you deserve.

What to Look for in a Securities Attorney

When seeking a securities attorney in Hidden Hills, there are several key factors to consider. Choosing the right attorney can make a significant difference in the outcome of your case.

Experience and Track Record:Look for an attorney with a proven track record of success in securities litigation and arbitration. Experience in handling cases similar to yours is crucial, as it demonstrates their ability to navigate the complexities of securities law and achieve favorable outcomes for their clients.
Client-Centered Approach:A client-centered approach means that your attorney will prioritize your needs and goals. This includes clear communication, transparency, and a commitment to keeping you informed throughout the process. Your attorney should be responsive to your questions and concerns, providing the support you need during a challenging time.
Resources and Network:A well-connected attorney will have access to a network of experts and resources that can strengthen your case. This includes forensic accountants, financial analysts, and industry experts who can provide valuable insights and testimony.
Integrity and Ethics:Integrity and ethics are paramount in the legal profession. Ensure that your attorney adheres to the highest ethical standards and is committed to acting in your best interests. This includes avoiding conflicts of interest and maintaining confidentiality.
Comprehensive Legal Services:Your attorney should offer comprehensive legal services, from initial consultation to post-arbitration support. This ensures that you receive consistent and reliable representation throughout the entire process.

Why Choose Bakhtiari & Harrison?

Bakhtiari & Harrison stands out as a premier choice for high net worth individuals seeking representation in securities matters. Our firm is built on a foundation of trust, integrity, and a commitment to excellence.

AV Rated Firm:Our AV rating reflects our dedication to providing exceptional legal services. This prestigious rating is a testament to our expertise, professionalism, and ethical standards.
Experienced Team:Our team of attorneys brings a wealth of experience in securities litigation and arbitration. We have successfully represented clients in a wide range of cases, recovering millions of dollars in losses.
Client-Focused Approach:At Bakhtiari & Harrison, our clients are at the heart of everything we do. We take the time to understand your unique situation and tailor our approach to meet your specific needs. Our goal is to achieve the best possible outcome for you and your family.
Comprehensive Support:From the moment you contact us, we are here to support you. Our comprehensive legal services cover every aspect of your case, ensuring that you have the guidance and representation you need at every stage.
Commitment to Justice:We are passionate about seeking justice for our clients. Securities fraud can have a devastating impact, and we are committed to holding those responsible accountable. Our relentless pursuit of justice drives us to go above and beyond for our clients.

Conclusion

If you are a high net worth individual in Hidden Hills, California who has been defrauded in securities matters, Bakhtiari & Harrison is here to help. Our AV rated firm focuses on representing investors who have suffered significant losses due to fraud or misconduct. With a deep understanding of the FINRA arbitration process and a commitment to achieving justice for our clients, we are your trusted partners in safeguarding your investments.

We have proudly represented high net worth individuals, including NBA basketball players, MLB players, actors, musicians, and celebrities, demonstrating our ability to handle high-profile and complex cases. Our extensive experience and proven track record make us the ideal choice for those seeking justice in securities fraud matters.

Contact Bakhtiari & Harrison today to schedule a consultation and learn more about how we can assist you. Visit our website or call us at (310) 499-4732 to speak with one of our experienced attorneys. Let us help you reclaim your financial future and hold those responsible for your losses accountable.

We represent victims of financial and investment fraud throughout California, including Beverly Hills, Hidden Hills, Los Angeles, Orange County, Pacific Palisades, Palm Springs, Pasadena, San Diego, San Francisco, and other locations. We will work tirelessly in pursuit of financial compensation for your investment losses.