A National Association of Securities Dealers (NASD) arbitration panel found The Boston Group and its founder Robert Diminico liable and ordered them to pay a total of $400,000, which included a $300,000 award of punitive damages to compensate Jim Oliver, a Nebraska investor. At the arbitration, Mr. Oliver proved that the Boston Group and Mr. Diminico engaged in boiler room tactics designed to systematically defraud investors.
Mr. Oliver was represented by Ryan Bakhtiari, a Beverly Hills and Indian Wells, California based attorney that represents customers in securities arbitrations. According to Ryan Bakhtiari, who argued the case at the hearing: “Boiler rooms like The Boston Group prey on vulnerable investors. Mr. Oliver, who is a cattle rancher was more than 1,000 miles away from his broker when he was induced to open an account by a cold call. Mr. Oliver placed trust in Robert Diminico’s firm, The Boston Group, which defrauded him by making trades in thinly traded low priced stocks without first seeking his authorization.” Fortunately, investors like Mr. Oliver can turn to arbitration to resolve such disputes.
The firm represents investors who have lost money because of brokerage firms wrongful conduct and has, in the past, been responsible for recovering millions of dollars in losses for their clients.
The Financial Industry Regulatory Authority (FINRA) is a non-governmental organization overseeing brokerage firms and their registered representatives in the United States. Established in 2007 through the merger of the NASD and the regulatory functions of the New York Stock Exchange, FINRA operates under the authority of the Securities and Exchange Commission (SEC). Its primary role is to ensure that the securities industry operates fairly and transparently, protecting investors and maintaining market integrity.
FINRA enforces rules and regulations governing the conduct of financial professionals and firms, conducting routine examinations and investigating potential violations. It also provides a platform for resolving disputes between investors and firms through its arbitration and mediation services. In addition, FINRA offers educational resources for investors to enhance their understanding of financial markets and products.
The organization plays a critical role in maintaining confidence in the financial system by promoting ethical behavior, implementing rigorous compliance standards, and fostering transparency. By overseeing a vast network of brokerage firms and individual brokers, FINRA helps ensure that investors are treated fairly and that financial markets operate efficiently and equitably.