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.

Los Angeles Securities Fraud Lawyers

As an investor in Los Angeles, you may have developed a sense of trust and confidence in your stockbroker, believing they possess the expertise to guide you through the complex world of finance. Unfortunately, this trust can sometimes be exploited, leaving you vulnerable to stockbroker negligence or even outright fraud. Unlike other regions, Los Angeles investors often find themselves surrounded by a vibrant and competitive investment landscape, where the allure of rapid financial gain can overshadow critical scrutiny. Los Angeles securities fraud lawyers at Bakhtiari & Harrison represent investors.

Los Angeles is a global business hub known for its diverse economy, innovative industries, and strong investment opportunities. As the second-largest U.S. city, it thrives in entertainment, technology, real estate, and manufacturing. The city’s strategic location offers access to international markets, particularly Asia, making it a prime destination for global trade and logistics.

Startups and entrepreneurs benefit from a strong venture capital presence, especially in Silicon Beach, where tech and media companies attract significant funding. LA’s real estate market remains a hotspot for investors, with high demand in commercial and residential properties. The city also supports sustainability-driven businesses, fostering green tech and renewable energy investments.

With a vast consumer base, a skilled workforce, and business-friendly policies, Los Angeles continues to draw corporations and investors seeking growth. Despite challenges like high costs and regulations, LA remains a dynamic marketplace for business and investment opportunities.

Additionally, the city’s diverse cultural and economic fabric contributes to a unique reliance on personal connections and reputations, creating an environment where dishonest practices can go unnoticed or overlooked. If you’ve lost money due to broker misconduct in the bustling markets of L.A., you’re not alone—and understanding your legal options is the first step toward reclaiming your financial health.

Table of Contents

Understanding the Investor’s Perspective

Meet Steven, a dedicated retiree living in the heart of Los Angeles who has spent decades diligently saving for his golden years. Like many others in the sprawling city, Steven believed that investing his hard-earned savings with a trusted stockbroker would secure a comfortable and financially stable future. He thought he had found the perfect advisor in a well-regarded brokerage firm, drawn in by promises of high returns and expert guidance. With visions of leisurely afternoons spent with family and friends, Steven entrusted his financial well-being to his stockbroker, confident that he was making sound decisions for his retirement.

However, as the complexities of the investment world began to unfold, Steven realized that this trust could lead to devastating consequences, jeopardizing the financial peace he had worked so hard to achieve.

Financial Losses Due to Broker Misconduct

For investors like Steven, the allure of the stock market can quickly become a source of financial distress. In his case, he experienced significant losses due to the negligence of his stockbroker, who failed to adhere to proper investment practices and engaged in risky trades without his consent.

As Steven witnessed his retirement savings evaporate due to a lack of transparency, over-concentration, and irresponsible financial advice, he struggled to come to terms with the painful reality of misplaced trust. Incidents of negligence and outright fraud are all too prevalent in the dynamic investment landscape of Los Angeles. In this fast-paced environment, stockbrokers may feel compelled to prioritize their own financial benefits over the interests of their clients, leading to catastrophic financial repercussions.

This highlights the critical importance of risk management in investment practices. Without proper oversight and accountability, the potential for significant financial losses increases dramatically, emphasizing the necessity of seeking out qualified legal representation when faced with such challenges.

Emotional Toll and Uncertainty

The emotional impact of financial loss can be profound. For Steven, the betrayal felt by his once-trusted broker led to sleepless nights filled with anxiety and an overwhelming sense of uncertainty about his future. The stress of dwindling retirement savings weighs heavily on his mind, affecting his overall well-being and relationships. Many investors in similar situations find themselves questioning their judgment and the wisdom of investing at all. This emotional turmoil disrupts personal peace and leaves individuals feeling vulnerable and uncertain about their financial security.

The Injustice of Trust Betrayed

At the heart of Steven’s experience—and those of countless other investors who have become victims of investment fraud—lies a grave injustice: hard-working individuals should not have to endure suffering due to the unethical actions of others. It is fundamentally unfair for people like Steven, who have dedicated their lives to saving and preparing for the future, to be exploited by those wielding financial influence without integrity. This betrayal of trust, often manifested through misleading statements and deceptive practices, underscores the urgent need for a legal system that holds stockbrokers accountable for their actions.

In a vibrant and diverse city like Los Angeles, advocating for investor protection is essential to restoring fairness in the investment landscape and ensuring that individuals can pursue their financial goals without the fear of unethical manipulation or becoming victims of investment fraud.

Bakhtiari & Harrison – The Investment Fraud Law Firm

Los Angeles securities fraud lawyers at Bakhtiari & Harrison, the team of experienced securities fraud attorneys understands the emotional challenges and frustrations that arise following the loss of your hard-earned money to deceptive practices. They are dedicated to providing compassionate legal representation to clients navigating these difficult times. With a proven track record of success in the field, Bakhtiari & Harrison has established a strong reputation across Southern California for their protection of investors in securities law.

The firm has successfully recovered substantial investments for numerous clients affected by fraud, demonstrating its commitment to holding wrongdoers accountable and vigorously defending investors’ rights.

Why Ryan Bakhtiari is a Capable Investment Fraud Attorney

Ryan Bakhtiari is an experienced securities attorney and a distinguished investment fraud lawyer, recognized for his extensive knowledge and involvement in regulatory bodies. He effectively represents clients in securities disputes before FINRA and in court, demonstrating his legal knowledge and commitment to protecting the rights of investors.

Leadership Roles: In 2019, Bakhtiari was nominated as a public member of FINRA’s Discovery Task Force Committee, where his deep understanding of arbitration standards significantly influences the development of best practices.

Chairmanship: Elected as Chairman of the National Arbitration and Mediation Committee in 2013, he plays a pivotal role in improving arbitration procedures and arbitration agreements.

Committee Involvement: His role on the NAMC Committee showcases his dedication to ensuring fair practices across exchanges, further solidifying his reputation as a seasoned SEC fraud lawyer.

Industry Advocacy: As a former President of the Public Investors Arbitration Bar Association, Bakhtiari is a staunch advocate for investor rights, particularly in disputes involving financial services. His extensive knowledge of federal securities law equips him to navigate the complexities of federal courts effectively, ensuring that investors like Steven receive the justice and compensation they deserve.

Educational Contributions: He contributes to legal education as a faculty member at the Practicing Law Institute and delivers lectures on securities arbitration, with a particular emphasis on arbitration proceedings within organizations like the American Arbitration Association.

With his leadership and advocacy, Ryan Bakhtiari is a strong ally for those seeking justice in investment fraud cases.

David Harrison: A Legal Authority in Securities Fraud

David Harrison, a Partner at Bakhtiari & Harrison, is a prominent FINRA securities fraud and investment loss lawyer. With extensive experience in broker fraud and securities law, he blends his knowledge of Wall Street operations with legal proficiency to advocate effectively for clients involved in fraud disputes, including those related to hedge funds. His unique background allows him to understand the intricate dynamics of hedge fund operations, empowering him to represent investors with confidence and authority in their pursuit of justice.

Extensive Experience:
Harrison obtained a degree in Finance from USC, marking the beginning of his career in the finance sector as a registered representative at Shearson Lehman Brothers, where he focused on client-centric investment strategies after earning his Series Seven license. To further bolster his legal skills, he completed a clerkship for Judge Joseph Reichmann at the U.S. District Court for the Central District of California.

Prosecution and Defense:
His career advanced as an Assistant District Attorney in New York City, where he prosecuted various fraud cases. He then joined Morgan Stanley Dean Witter, defending the firm and its financial advisors against stockbroker fraud allegations that influenced the securities markets. This experience provided him with valuable insights into investor protection and the deceptive tactics often employed in securities fraud cases.

Commitment to Advocacy:
His dedication has garnered attention from esteemed publications such as Money Magazine and the Los Angeles Times, showcasing his skill in the FINRA arbitration process and his effectiveness in representing clients involved in intricate securities fraud cases.

David Harrison’s strong credentials in finance and law position him as a powerful advocate for clients facing investment fraud.

Strategy for Success

Initial Consultation: A Foundation for Your Case
The first step in addressing securities fraud and tackling investor complaints is to take advantage of a free consultation offered by experienced Los Angeles securities fraud lawyers at Bakhtiari & Harrison. During this initial meeting, legal professionals will review your specific circumstances, analyze your losses, and provide tailored advice on the best course of action. This insight helps you understand your legal standing regarding investor complaints and the potential avenues for recovery.

Comprehensive Investigation and Case Development
Following the initial consultation, your attorney will embark on an in-depth investigation to gather all relevant facts and evidence surrounding your case. This process may involve an examination of financial documents, communications with your broker, and any other pertinent information that could substantiate your claim. By meticulously building a strong case, your lawyer aims to bolster your chances of a favorable outcome.

Pursuing Justice: Legal Action and Representation
Once a solid case has been constructed, the legal team will guide you through the process of filing a claim against those responsible for your financial losses, including negligent brokers and instances of broker theft. Whether seeking justice through the courts or negotiating settlements, your lawyer will be your advocate every step of the way. Their knowledge of securities law, particularly in cases involving negligent brokers and broker theft, along with their commitment to your case, will help ensure that you have robust representation as you pursue the compensation you deserve.

Take Action

If you believe you have been a victim of securities fraud, don’t wait any longer. Contact Los Angeles securities fraud lawyers at Bakhtiari & Harrison today for a confidential consultation to begin the process of reclaiming your financial losses. Their experienced legal team is ready to help you navigate your case and fight for your rights.

Stay informed about protecting your investments and recognizing the signs of fraud by subscribing to the firm’s LinkedIn page. Gain valuable insights that can empower you to safeguard your financial future.

Avoiding Financial Disaster: The Importance of Action

Failing to take timely action in the face of securities fraud can lead to severe repercussions. Victims may find themselves facing prolonged financial instability as they struggle to recover from their losses. Additionally, it’s crucial to understand that there are often strict deadlines for filing claims, which can make it impossible to seek recovery after certain periods. Beyond the financial implications, the emotional toll of unresolved injustice can be significant, leading to increased stress, anxiety, and a sense of helplessness. Taking proactive steps with the help of a skilled Los Angeles securities fraud lawyer is essential to safeguard your financial future and pursue justice effectively.

Achieving Resolution: The Path to Recovery

Success Stories

At Bakhtiari & Harrison, there are numerous testimonials from clients who have regained their financial footing after facing securities fraud. These narratives highlight the firm’s dedication and effectiveness in recovering significant wrongfully lost investments. Each story serves as a beacon of hope for those grappling with similar challenges, proving that recovery is possible with the right legal support.

Pathway to Prosperity

Imagine life after successfully navigating a securities fraud case. Your finances are restored, giving you the freedom to invest wisely for your future. No longer burdened by the weight of financial losses, you can focus on what truly matters—your family, your passions, and your peace of mind. Justice has been served, allowing you to move forward with renewed confidence and clarity, knowing you took the necessary steps to protect your rights and financial security.

If you need a Los Angeles securities fraud lawyer, look no further than Bakhtiari & Harrison. Our dedicated team of Los Angeles securities fraud lawyers is here to provide the legal support you need to protect your investments and confidently navigate the securities industry.

Contact us to schedule a consultation with one of our experienced Los Angeles securities fraud lawyers. In addition to Los Angeles County, we represent victims of financial and securities fraud throughout California, including Beverly Hills, Hidden Hills, Malibu, Newport Beach, Orange County, Pacific Palisades, Palm Springs, Pasadena, San Diego, San Francisco, Santa Monica, and other locations. Los Angeles securities fraud lawyers at Bakhtiari & Harrison will work tirelessly in pursuit of financial compensation for your investment losses.