Broker Fraud & Securities Arbitration
Investors who lose money as the result of careless mistakes or intentional fraud by their stockbrokers or financial advisers may be eligible to recover their losses through a process known as arbitration. Arbitration claims can involve all types of investments, including stocks, bonds, annuities, and mutual funds.
Most customer claims against stockbrokers and financial “advisers” or “consultants” are required to be brought in arbitration before the Financial Industry Regulatory Authority, also known as “FINRA.” rather than in court. The cases take about one year to complete and are decided at a hearing before either one or three arbitrators, depending on the size of the claim. Hearings are held throughout the United States. The arbitrators come from all walks of life but are predominantly active or retired attorneys and securities industry professionals who are appointed with the input of the parties.
Approximately 60% (or six out of ten) FINRA arbitration cases nationwide are resolved via settlement. Of the cases that go to a final hearing before the arbitrators, claimants and public investors have historically won about half and lost about half.
- Collateralized Mortgage Obligations (CMOs)
- Equipment Leasing Funds
- Leveraged & Inverse Mutual Funds and Exchange Traded Funds
- Penny Stocks & Over-The-Counter Trading
- Private Placement
- Securities Arbitration
- Securities-Backed Lines of Credit
- Stockbroker Arbitration
- Unit Investment Trusts
- Variable Annuities
- Business Development Companies