At Bakhtiari & Harrison, we understand the profound impact financial losses can have on investors, especially when those losses result from the misconduct or negligence of brokerage firms.
Servicing Pasadena California Clients
Our dedicated team of FINRA securities attorneys is committed to helping investors in Pasadena and its suburbs, including South Pasadena, Altadena, San Marino, and La Cañada Flintridge, navigate the complex landscape of financial disputes and recover their rightful investments. In this comprehensive blog, we delve into the various claims we handle and provide an in-depth look at the FINRA arbitration process.
Understanding Investor Claims Against Brokerage Firms
Investors place their trust in brokerage firms and financial advisors to manage their investments prudently. Unfortunately, this trust can sometimes be betrayed, leading to significant financial harm. At Bakhtiari & Harrison, we represent investors in a variety of claims against brokerage firms, including:
- Misrepresentation and Omission of Material Facts:
- Misrepresentation occurs when a broker provides false information about an investment.
- Omission involves withholding critical information that could influence an investor’s decision.
- These deceptive practices can lead investors to make uninformed and detrimental decisions.
- Unsuitable Recommendations:
- Brokers are obligated to recommend investments that align with an investor’s financial goals, risk tolerance, and investment experience.
- Unsuitable recommendations can result in significant losses, especially for conservative investors who are misled into high-risk ventures.
- Churning:
- This unethical practice involves excessive trading to generate higher commissions for the broker, regardless of the investor’s best interests.
- Churning often leads to inflated fees and unnecessary risks, eroding the value of an investor’s portfolio.
- Unauthorized Trading:
- Brokers must obtain explicit consent from investors before executing trades.
- Unauthorized trading violates this principle and can significantly impact an investor’s financial strategy.
- Overconcentration:
- Diversification is key to managing investment risk.
- Overconcentration occurs when a broker places a large portion of an investor’s portfolio into a single investment or sector, increasing vulnerability to market fluctuations.
- Failure to Supervise:
- Brokerage firms have a duty to oversee their brokers’ activities to prevent misconduct.
- Failure to supervise claims arise when a firm neglects this responsibility, resulting in investor harm.
- Ponzi Schemes and Fraudulent Investments:
- Some brokers engage in outright fraud, luring investors into schemes designed to collapse.
- Ponzi schemes promise high returns with little risk, paying earlier investors with funds from newer ones, eventually leading to catastrophic losses.
The FINRA Arbitration Process
When disputes arise, investors often turn to the Financial Industry Regulatory Authority (FINRA) arbitration process. This streamlined and efficient method provides a resolution without the need for protracted litigation. Here’s a step-by-step guide to understanding the FINRA arbitration process:
- Filing a Claim:
- The process begins with the investor (claimant) filing a Statement of Claim with FINRA, detailing the dispute, parties involved, and the relief sought.
- Bakhtiari & Harrison meticulously prepare these claims, ensuring all pertinent information and evidence are presented clearly.
- Response:
- The brokerage firm (respondent) is required to file an Answer within 45 days, addressing the allegations and presenting any defenses.
- This stage often involves substantial back-and-forth, and our attorneys are adept at countering defenses and reinforcing our clients’ claims.
- Selection of Arbitrators:
- Both parties select arbitrators from a FINRA-approved pool. The panel typically includes individuals with relevant expertise and experience.
- The selection process is crucial, and our firm ensures that the chosen arbitrators are impartial and well-suited to handle the complexities of the case.
- Prehearing Conferences:
- These meetings, conducted via phone or video conference, allow both parties to discuss procedural matters, schedule hearings, and address preliminary issues.
- Effective negotiation during prehearing conferences can streamline the process and resolve some disputes without a full hearing.
- Discovery:
- The discovery phase involves exchanging documents, information, and witness lists.
- Our attorneys handle discovery diligently, ensuring that all relevant evidence is obtained and disclosed, which is critical for building a robust case.
- Hearings:
- The arbitration hearing resembles a trial, where both parties present their evidence, call witnesses, and make arguments before the arbitration panel.
- Bakhtiari & Harrison’s attorneys excel in presenting compelling cases, cross-examining witnesses, and delivering persuasive arguments.
- Award:
- After the hearing, the arbitrators deliberate and issue an Award, which is binding and enforceable in court.
- Our firm ensures that the award is comprehensive and fair, reflecting the extent of the investor’s losses and holding the brokerage firm accountable.
Why Choose Bakhtiari & Harrison?
- Expertise in FINRA Arbitration:
- With years of experience in securities law and a deep understanding of FINRA regulations, our attorneys are well-equipped to handle complex arbitration cases.
- Personalized Attention:
- We recognize that each case is unique. Our firm provides personalized attention to every client, tailoring our strategies to meet their specific needs and goals.
- Proven Track Record:
- Bakhtiari & Harrison has a proven track record of successfully representing investors and recovering substantial awards on their behalf.
- Comprehensive Legal Support:
- Beyond arbitration, we offer a wide range of legal services, including contract review, compliance counseling, and defense against customer lawsuits.
Protecting Elderly Investors
Senior citizens are particularly vulnerable to investment fraud and misconduct. Many states, including California, have enacted elder abuse statutes to protect seniors from financial exploitation. These laws provide for attorney’s fees, costs, and treble damages, significantly enhancing the remedies available to defrauded senior investors.
At Bakhtiari & Harrison, we are passionate about safeguarding the interests of elderly investors. Our attorneys work tirelessly to ensure that senior citizens receive the justice and compensation they deserve. Whether through FINRA arbitration or litigation, we leverage every legal avenue to hold wrongdoers accountable.
Our Commitment to Representing Pasadena Based Clients
Located in Pasadena, Bakhtiari & Harrison is deeply rooted in the local community, including the surrounding suburbs of South Pasadena, Altadena, San Marino, and La Cañada Flintridge. We understand the unique challenges faced by investors in these areas and are committed to providing exceptional legal representation. Our firm actively engages in community outreach, educating investors about their rights and how to protect themselves from fraud and misconduct.
We also maintain strong relationships with local CPAs, financial advisors, and other professionals, fostering a collaborative approach to resolving financial disputes. By working together, we aim to create a safer investment environment for all residents of Pasadena and its suburbs.
Educational Resources and Support
In addition to representing clients in California, Bakhtiari & Harrison is dedicated to educating the public about investment fraud and investor rights. Our website features a wealth of resources, including:
- Informative Blogs:
- Our blog covers a wide range of topics, from the latest developments in securities law to practical advice for investors.
- By staying informed, investors can better protect themselves and make more informed decisions.
- Case Studies:
- We provide detailed case studies of past successes, illustrating how our firm has helped investors recover their losses.
- These real-world examples demonstrate our expertise and the effectiveness of our strategies.
- FAQs:
- Our frequently asked questions section addresses common concerns and provides clear, concise answers.
- Whether you’re new to investing or a seasoned professional, our FAQs offer valuable insights.
- Consultation Services:
- We offer free initial consultations to prospective clients, allowing them to discuss their concerns with an experienced attorney.
- This no-obligation meeting helps investors understand their options and the potential outcomes of their case.
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.