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.

Why Hollywood Chooses Bakhtiari & Harrison for Investment Fraud Cases

In the fast-paced and high-stakes world of Hollywood, financial security is paramount. Unfortunately, even the most successful entertainers and executives can fall victim to unscrupulous stockbrokers who mismanage investments or engage in fraud. When this happens, it’s essential to have the correct legal team on your side—one that understands the unique needs of the entertainment industry. Bakhtiari & Harrison, the trusted California securities investment fraud attorneys, is Hollywood’s firm when financial security is at risk.

Understanding Investment Fraud in Hollywood, California

Investment fraud can happen to anyone, regardless of their wealth or industry. However, the entertainment industry is particularly vulnerable due to the significant sums of money involved and the complex financial arrangements often in place. Stockbrokers who manage the portfolios of Hollywood elites have a fiduciary duty to act in the best interests of their clients. Unfortunately, this duty is not always honored, leading to significant financial losses for those who rely on these professionals.

Whether it’s through unsuitable investment recommendations, unauthorized trading, or outright theft, investment fraud can have devastating consequences. Hollywood professionals, from actors and directors to producers and studio executives, need to know that they have legal recourse when they’ve been wronged. That’s where Bakhtiari & Harrison comes in.

Why Bakhtiari & Harrison is Hollywood’s Go-To Firm

Bakhtiari & Harrison is not just another law firm; it is a leading authority in securities law with a proven track record of defending clients in high-stakes cases. Here’s why Hollywood, California, chooses Bakhtiari & Harrison when dealing with stockbroker investment fraud:

Unique Knowledge in Entertainment Industry Cases: Bakhtiari & Harrison’s team of California securities investment fraud attorneys understands the entertainment industry’s financial landscape. They have the experience necessary to navigate the complex financial and legal issues that Hollywood professionals face.
Proven Success in High-Stakes Litigation: The firm’s attorneys have secured substantial client recoveries in cases involving significant financial losses. Their experience in arbitration and litigation makes them the ideal choice for clients who need strong representation in court or during negotiations.
Personalized Legal Strategies: At Bakhtiari & Harrison, no two cases are treated the same. The firm’s California securities investment fraud attorneys take the time to understand each client’s specific circumstances, developing personalized legal strategies tailored to achieve the best possible outcome.
A Commitment to Justice: Bakhtiari & Harrison is deeply committed to holding unscrupulous brokers accountable. Their California securities investment fraud attorneys relentlessly pursue justice, ensuring that their clients receive the compensation they deserve for their losses.
Discreet and Confidential Representation: In Hollywood, reputation is everything. Bakhtiari & Harrison understands the importance of discretion and handles all cases with the utmost confidentiality. Clients can trust that their cases will be managed professionally and privately.

California Securities Investment Fraud Attorneys Who Understand Hollywood

The entertainment industry is unlike any other, and the stakes are incredibly high when it comes to financial matters. Bakhtiari & Harrison’s team of California securities investment fraud attorneys has the capability needed to protect the financial interests of Hollywood’s elite. Whether it’s recovering losses from fraudulent investments, addressing breaches of fiduciary duty, or navigating complex financial disputes, the firm is equipped to handle the most challenging cases.

Hollywood professionals face unique challenges in managing their wealth. With significant incomes, complex tax issues, and high-profile investments, the potential for financial mismanagement or fraud is ever-present. When the unthinkable happens, and an investment goes awry due to a broker’s misconduct, it’s crucial to have experienced California securities investment fraud attorneys on your side.

Real Cases, Real Recoveries

Bakhtiari & Harrison’s success is demonstrated through their significant recoveries for clients in the entertainment industry. Whether dealing with high-profile cases involving millions of dollars or more discreet matters that require sensitive handling, the firm’s California securities investment fraud attorneys consistently achieve favorable outcomes for their clients.

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Trust Bakhtiari & Harrison When It Matters Most

When it comes to protecting your financial future, especially in the high-stakes world of Hollywood, you need a legal team that understands both the complexities of the entertainment industry and the intricacies of securities law. Bakhtiari & Harrison, the leading California securities investment fraud attorneys, is the firm that Hollywood trusts to safeguard their financial interests and recover from investment fraud.

If you or someone you know in the entertainment industry has been the victim of investment fraud, don’t wait to seek legal advice. Contact Bakhtiari & Harrison today to learn more about how their team of experienced California securities investment fraud attorneys can help you recover your losses and protect your financial future. Visit our website to learn more about the firm and schedule a consultation.