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.

Top Investment Fraud Attorneys in Los Angeles

Investment fraud can leave investors in financial and emotional turmoil, particularly when the very professionals entrusted with protecting your finances—stockbrokers and brokerage firms—violate that trust. Los Angeles is home to a thriving investment community, but unfortunately, it’s also a hub for unscrupulous actors who engage in deceptive practices. For investors who have suffered significant losses due to these unethical behaviors, finding the right investment fraud attorney in Los Angeles is crucial to reclaiming what’s rightfully yours.

Top Investment Fraud Attorneys in Los Angeles

This blog will explore what constitutes investment fraud, why it matters to investors in Los Angeles, and how an investment fraud attorney can assist in recovering your financial losses. We’ll also provide practical tips on choosing the best attorney to represent you.

What is Investment Fraud?

Investment fraud occurs when financial professionals, including stockbrokers and brokerage firms, deceive investors for personal or corporate gain. These actions often result in significant financial losses for the investor and can take many forms, including:

Misrepresentation of investment risks.
Selling unsuitable investments.
Unauthorized trading in an investor’s account.
Ponzi schemes or pyramid schemes.

In Los Angeles, with its bustling financial sector, cases of investment fraud are unfortunately all too common. If you’ve fallen victim to such misconduct, hiring an investment fraud attorney in Los Angeles can help hold these parties accountable and recover your losses.

Why is Investment Fraud Important?

Investment fraud doesn’t just harm individual investors—it shakes confidence in the financial system as a whole. Each year, billions of dollars are lost to fraudulent practices, impacting retirees, small business owners, and families who rely on their investments for financial security. According to the Financial Industry Regulatory Authority (FINRA), many fraud cases go unreported, leaving countless victims without justice.

For Los Angeles investors, the stakes are particularly high. The city’s diverse investment landscape, from real estate to tech startups, creates ample opportunities for dishonest brokers and firms to exploit unsuspecting individuals. An investment fraud attorney in Los Angeles can help protect your rights, recover your losses, and send a clear message that fraudulent activity won’t be tolerated.

Real Examples of Investment Fraud

Investment fraud can take many forms. Here are a few examples that highlight the challenges investors face:

Unauthorized Trading
A Los Angeles-based investor discovered unauthorized transactions in their account. The broker had engaged in trades without the investor’s consent, resulting in significant losses. An investment fraud attorney successfully held the brokerage firm accountable, recovering the investor’s funds.
Misrepresentation of Risks
In another case, a stockbroker convinced an investor to purchase high-risk securities, falsely presenting them as safe and stable. When the investment plummeted, the victim sought legal assistance, leading to a favorable resolution through a seasoned Los Angeles investment fraud attorney.
Ponzi Scheme Exposure
A retiree invested in what appeared to be a legitimate fund promising steady returns. It turned out to be a Ponzi scheme. By working with an investment fraud attorney in Los Angeles, the retiree recovered a portion of the lost funds and helped prevent further harm to others.

Why You Need an Investment Fraud Attorney in Los Angeles

Navigating the legal landscape of investment fraud requires deep knowledge of securities laws and a strong ability to investigate financial misconduct. An investment fraud attorney in Los Angeles brings these skills to the table, providing the resources necessary to build a strong case.

Here are a few ways an attorney can help:

Recovering Financial Losses: Whether through settlement negotiations or court proceedings, a skilled attorney can help reclaim the money you’ve lost.
Holding Brokers and Firms Accountable: Investment fraud attorneys understand the regulations governing stockbrokers and brokerage firms, ensuring violators face consequences.
Providing Peace of Mind: Victims of fraud often feel overwhelmed and unsure of their next steps. An attorney can guide you through the process and fight on your behalf.

Tips for Choosing the Right Investment Fraud Attorney in Los Angeles

Selecting the right legal representation is critical to achieving a successful outcome. Here are some tips for finding an investment fraud attorney in Los Angeles who can effectively handle your case:

Look for Proven Results
A strong track record of helping investors recover their losses is a good indicator of a capable attorney. Research case outcomes and client testimonials to assess their effectiveness.
Check for Familiarity with Securities Law
An attorney well-versed in securities regulations will understand how to navigate complex cases and anticipate tactics used by brokerage firms.
Seek Personalized Attention
Avoid attorneys who treat your case as just another file. Personalized attention ensures your specific needs and concerns are addressed.
Evaluate Communication
Open and transparent communication is vital. Your attorney should keep you informed about your case and be responsive to your questions.

If you’ve been the victim of investment fraud in Los Angeles, don’t let the deceitful actions of stockbrokers or brokerage firms define your financial future. Hiring a dedicated investment fraud attorney in Los Angeles can make all the difference in recovering your losses and restoring your confidence in the financial system.

Contact Bakhtiari & Harrison, we are committed to helping investors seek justice. With extensive experience in investment fraud cases, we stand ready to fight for your rights and help you rebuild your financial security.