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What Can a Securities Attorney Do for Me?

Jun 19, 2021 FINRA Arbitration

The financial industry is built on trust. Unfortunately, brokers and brokerage firms often abuse that trust for their personal gain. Brokers should always act in their clients’ best interests, but securities regulation does not always protect investors from unethical brokers. FINRA arbitration lawyers help investors restore their lost funds.

What Do Securities Lawyers Do?

Securities brokers and brokerage firms have a duty to recommend suitable investments. When brokers fail to uphold that duty, investors can recover their losses through a process of arbitration, overseen by the Financial Industry Regulatory Authority (FINRA).  Securities lawyers help investors navigate FINRA arbitration rules and provide expert insights.

What Is FINRA Arbitration?

The FINRA arbitration process is different from suing in civil court, and research suggests that having a FINRA arbitration lawyer improves your chances of recovering losses.

When an investor files a claim with FINRA, the brokerage firm typically hires a securities lawyer from a big firm to defend their broker. Brokerage firms have experience in the industry and a significant advantage over investors. Kurta Law’s founding partner, Jonathan Kurta, has represented brokerage firms and uses his insider knowledge to his clients’ advantage.

The FINRA Arbitration Process

  1. Investors should start with a free case evaluation from a securities attorney.
  2. Then, investors can get the ball rolling by filing a Statement of Claim. At that point, the brokerage might choose to settle with the investor instead of entering into arbitration. The firm might also deny the investor’s claim, at which point the investor can still pursue arbitration.
  3. The brokerage and the investor both have a say in the selection of the arbitration panel.
  4. After they select a panel, both parties attend a pre-hearing conference, during which they may discuss a mediation alternative.
  5. During discovery, both parties submit their supporting documents.
  6. Next, parties attend arbitration hearings. These hearings could take place at a FINRA arbitration hearing location or over Zoom.
  7. After the hearings, the FINRA arbitration panel decides whether the brokerage owes the investor damages. If they decide in the investor’s favor, they will also determine the amount of the FINRA arbitration award.

FINRA Arbitration Statute of Limitations

According to FINRA arbitration rules, you have six years from the time of the alleged financial misconduct to file a statement of claim. Don’t wait if you suspect your broker might be the reason for losses in your securities account.

What is Securities Law?

The Securities Act of 1934 gave regulators the authority to oversee stock exchanges. But this oversight does not catch every instance of financial wrongdoing, and broker misconduct is a rampant issue in the securities industry.

Investors can see their broker’s history of misconduct on FINRA’s BrokerCheck record, but BrokerCheck does not always provide the whole story. “Expungement” allows brokers to remove their misconduct disclosures from BrokerCheck. Many industry experts and lawmakers believe regulators have not done enough to discourage brokers from defrauding investors of their hard-earned money.

Why Do Brokers Engage in Fraud?

Brokers might recommend high-risk securities because they want a large sales commission. In some instances, brokers have used their close relationship with an investor to misappropriate funds for themselves. There are plenty of cases of brokers taking advantage of elderly investors’ misplaced trust. Sadly, unscrupulous brokers have also been known to use an investor’s cognitive decline as a money-making opportunity.

Why Kurta Law Firm?

Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases. The firm has represented investors across the U.S. as well as investors in Mexico, Argentina, Ireland, France, and Britain. At Kurta Law, you’ll work with a securities lawyer who is dedicated to getting investors back on track.

The firm prides itself on exceptional attention to detail, aggressive advocacy, and excellent client relations. Someone will always be available to discuss the details of your case. Kurta Law represents clients on a contingency basis, meaning the firm only earns compensations if it recovers money on your behalf. 

Jonathan Kurta is committed to improving the securities industry, beyond his work as a FINRA arbitration attorney. He is a member of Public Investors Advocate Bar Association (PIABA), which works to reduce risks for investors. The firm also only represents investors – no financial institutions or bankers.

Ready to recover your investment losses? Give Kurta Law a call at (212) 658 -1502.