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.

Santa Monica Investment Fraud Attorneys at Bakhtiari & Harrison

Investment fraud can be financially devastating, especially when you place trust in financial professionals who betray it. In Santa Monica, known for its vibrant entrepreneurial spirit, booming tech startups, and dynamic real estate market, investment opportunities are plentiful. Unfortunately, the same qualities that make Santa Monica a hub for financial growth also attract unscrupulous actors seeking to exploit investors.

Santa Monica Investment Fraud Attorneys at Bakhtiari & Harrison

If you’ve suffered losses due to unethical practices by stockbrokers or brokerage firms, finding the right investment fraud attorney in Santa Monica is crucial to recovering your assets and holding wrongdoers accountable. In this blog, we’ll discuss what investment fraud is, why it matters, provide real-world examples, and explain how an investment fraud attorney can help you protect your financial future.

Investment fraud involves deceptive practices by financial professionals to mislead investors for personal or corporate gain. These actions often result in significant financial harm and may include:

Fraudulent misrepresentation of risks.
Unauthorized or excessive trading in an investor’s account.
Breach of fiduciary duty.
Running Ponzi or pyramid schemes.

Where diverse investment opportunities abound—from high-tech ventures to sustainable real estate projects—investors are particularly vulnerable to these schemes. If you suspect you’ve been targeted, working with an investment fraud attorney in Santa Monica can help you take legal action to recover your losses.

Why is Investment Fraud Important?

Investment fraud doesn’t just affect your finances; it also damages your trust in financial systems. Each year, billions of dollars are lost to deceptive practices, impacting investors from all walks of life. Santa Monica investors, ranging from tech entrepreneurs to retirees, often place their hard-earned money into innovative projects, making them prime targets for financial fraud.

According to a report by the Federal Trade Commission, investment scams are among the fastest-growing categories of financial fraud. For Santa Monica residents, these cases can include fraudulent tech startup investments, green energy scams, and deceptive real estate deals. Protecting yourself against these schemes requires vigilance—and the assistance of an experienced investment fraud attorney in Santa Monica who understands the local financial landscape.

Real Examples of Investment Fraud

Investment fraud takes many forms, but the following examples highlight some of the schemes that commonly impact Santa Monica investors:

Unsuitable Investment Recommendations
A Santa Monica retiree was encouraged to invest in high-risk international stocks by a broker claiming they were “low risk with high returns.” The investments were entirely unsuitable for the retiree’s conservative financial goals, resulting in significant losses. Legal representation helped recover the funds and hold the broker accountable.
Green Energy Investment Scam
A Santa Monica-based investor was lured into a green energy investment promising significant environmental and financial returns. The company turned out to be a fraudulent shell, and the investor lost thousands. An investment fraud attorney helped secure partial recovery through legal action.
Unauthorized Margin Trading
A widow in Santa Monica discovered that her broker had used margin trading without permission, leveraging her portfolio to execute risky trades. The unauthorized actions led to major financial losses, which were later recovered through legal intervention.

Why You Need a Santa Monica Investment Fraud Attorney

Investment fraud cases are complex, requiring detailed knowledge of securities laws, financial practices, and how to navigate disputes with stockbrokers or brokerage firms. Here are a few key reasons why working with an investment fraud attorney in Santa Monica is essential:

Recovering Lost Funds
Investment fraud often results in significant financial losses that can derail your plans for the future. Santa Monica investment fraud attorneys at Bakhtiari & Harrison can analyze your case, build a strong claim, and pursue recovery through settlement, FINRA arbitration or litigation.
Leveling the Playing Field
Brokerage firms and financial institutions have teams of lawyers to defend their actions. Hiring an attorney ensures you have the same level of legal representation to fight for your rights.
Understanding the Local Investment Climate
Santa Monica’s financial environment is unique, with its mix of innovative tech investments, real estate opportunities, and eco-conscious startups. Santa Monica investment fraud attorneys at Bakhtiari & Harrison familiar with the local nuances of bringing a case to successful conclusion.
Preventing Future Exploitation
By holding brokers and firms accountable, you not only recover your losses but also help deter future fraudulent practices, protecting other investors from similar harm.
Streamlining the Legal Process
Dealing with investment fraud can be overwhelming. An attorney takes the burden off your shoulders by managing paperwork, negotiations, and legal proceedings, allowing you to focus on rebuilding your financial future.

Tips for Choosing the Right Investment Fraud Attorney

If you’re seeking legal representation, here are some key factors to consider when choosing an attorney:

Track Record: Look for attorneys with a history of successful investment fraud cases.
Local Knowledge: Attorneys familiar with Santa Monica’s investment environment are better equipped to handle your case.
Personalized Attention: Choose an attorney who takes the time to understand your unique situation and needs.
Strong Communication: Santa Monica investment fraud attorneys at Bakhtiari & Harrison will keep you informed at every step of the process.

Why Santa Monica Investment Fraud Attorneys at Bakhtiari & Harrison?

When it comes to investment fraud cases, Bakhtiari & Harrison stands out as the go-to law firm in Santa Monica. Here’s why:

Proven Track Record of Success
Santa Monica investment fraud attorneys at Bakhtiari & Harrison has a history of achieving favorable outcomes for investors. Whether through arbitration, settlement negotiations, or court proceedings, the firm has recovered hundreds of millions for defrauded clients.
In-Depth Knowledge of Securities Law
The Santa Monica investment fraud attorneys at Bakhtiari & Harrison are highly versed in the intricacies of securities regulations, ensuring they can address complex fraud cases involving stockbrokers and brokerage firms.
Tailored Approach for Santa Monica Investors
The firm understands the unique challenges and opportunities in Santa Monica’s financial landscape. From high-tech startups to sustainable real estate ventures, Santa Monica investment fraud attorneys at Bakhtiari & Harrison tailor strategies to fit the needs of harmed investors.
Client-Centered Representation
Santa Monica investment fraud attorneys at Bakhtiari & Harrison prioritize clear communication, personalized attention, and a hands-on approach to ensure every client feels supported throughout the process.
Commitment to Justice
The firm doesn’t just fight for compensation—it seeks to hold fraudulent actors accountable, protecting both individual investors and the broader financial community in Santa Monica.

California is a thriving hub for innovation and investment, but it’s Los Angeles based residents are not immune to fraudulent practices. If you’ve been a victim of investment fraud, don’t let unethical brokers or firms get away with it. With the right Santa Monica investment fraud attorney, you can recover your losses, protect your rights, and restore your financial security. Santa Monica investment fraud attorneys at Bakhtiari & Harrison are committed to fighting for investors who’ve been wronged. Our approach ensures that every client receives the focused attention they deserve as we pursue justice on their behalf. Contact us for more information.