FINRA Arbitration
Disputes between brokerages and their investment clients are a frequent occurrence. An investigative action by the Financial Industry Regulatory Authority (FINRA) almost always arises from these disputes. Many times, these actions trigger a forced arbitration presided over by FINRA, which will evaluate the merits of the complaint and decide upon appropriate corrective action. In addition, FINRA will determine if the aggrieved party is entitled to any financial remedies. Unlike other forms of alternative dispute resolution – such as mediation–arbitration decisions of FINRA legally bind the parties involved.
Oftentimes, the decisions in these disputes leave individuals confused. This is exacerbated by the complex regulatory environment and the short timeframe involved in these expedited proceedings. To alleviate this, all parties involved should seek representation from a qualified and reputable attorney experienced in FINRA matters. If you have been victimized by investment schemes or misconduct, you need a seasoned investment fraud lawyer like those at Crepeau Mourges. We can capably handle securities arbitration, retain access to the appropriate experts, and we understand the specific details of investment law.
Who Do We Represent?
The lawyers at Crepeau Mourges focus our representation on individual investors in FINRA matters. Whether the victim of an unlawful investment scheme, broker misconduct or otherwise, our clients frequently face significant and unexpected financial loss caused by their advisors. We assist to provide a well-versed, experienced, and highly-qualified securities lawyer to represent you. Our attorneys are experienced in FINRA arbitration and understand the nuances and economics of investment law. We fight aggressively for our client’s rights and best interests. We can build a solid case concerning unacceptable losses and how they could have been avoided through more prudent actions on the part of the broker or brokerage firm.
Why Do We Need to Arbitrate Our Investment Loss Claims?
Nearly all investor claims are decided in arbitration. Courts are typically not involved since brokerage firms have their customers sign agreements stating they waive their right to go to court. These agreements state that all disputes will be arbitrated. Arbitrations are filed with the dispute resolution arm of FINRA. FINRA is a self-regulating organization that oversees the securities industry. Its many functions include regulation, licensing, and dispute resolution.
FINRA arbitrations are different from court proceedings. A panel of arbitrators decides each case. The arbitrators are impartial and unbiased regarding the matters they hear. Arbitrators have more experience regarding the subject matter of these complaints and their expertise minimizes the cost to the parties involved. Unlike typical trials conducted in court, FINRA arbitrations usually occur in a less formal setting and are expedited.
What If I Suspect Advisor Fraud or Wrongdoing?
You and your business entity have rights under federal and state investment and securities regulations. Pursuant to your brokerage agreement, you can initiate an arbitration proceeding against the accused party by contacting a FINRA lawyer directly. The lawyer can provide instructions and complete the appropriate forms to file your complaint and request action.
Unlike most forms of litigation, a FINRA proceeding is typically handled relatively quickly. You may be under a time crunch and have only a few weeks to prepare. Consequently, your attorney will collect the evidence and, if necessary, delay a request for arbitration. In the meantime, your lawyer will help you assemble the strongest case possible to bring it to the most favorable resolution. This may involve assembling and collating a substantial amount of documents, expert testimony, and other information.
To learn more about your rights and the potential legal strategies, schedule a no-obligation consultation with Crepeau Mourges today.
How to Protect Yourself from Financial Fraud
According to a Hanover, MD FINRA arbitration lawyer, financial fraud is an all-too-common occurrence, with criminals taking advantage of unsuspecting victims by stealing their hard-earned money. To protect yourself from becoming a victim of financial fraud, it’s important to be aware of the warning signs and take preventive steps to avoid being scammed. Gain valuable insight on how to protect yourself from financial fraud, and then contact an attorney at Crepeau Mourges if you believe you have suffered from fraudulent activities.
Know the Warning Signs
Financial fraud can be difficult to spot, but it is important to be aware of the warning signs that may indicate fraudulent activities. One of the most common signs of financial fraud is a promise of easy money. If someone is offering a guaranteed return on your investment or a way to get rich quickly, it’s a major red flag. Similarly, if someone is offering an opportunity that seems too good to be true, it likely is. Another warning sign of financial fraud is an unwillingness to provide details or answer questions. Be wary of any investor who refuses to provide you with information about their business or is unwilling to answer your questions. Legitimate investments should provide thorough documentation and answers to all questions. Unsolicited offers are another indication of possible financial fraud. If you are contacted out of the blue with an offer to invest in a company or product, it is likely a scam.
Check Out the Company
When considering an investment, it’s important to make sure the company you’re dealing with is legitimate. A Hanover FINRA arbitration lawyer suggests doing your due diligence and researching any company you are considering investing with. Make sure to look up the company’s registration status, find out if they are regulated, and verify that their representatives are properly licensed. You can check out the company by visiting the SEC’s EDGAR database or the Financial Industry Regulatory Authority’s BrokerCheck website. These resources can provide you with important information about the company, including their financial statements and other documents that can help you evaluate whether the investment is right for you.
It’s also important to take time to review the background of the company and its management team. Look up their history and any complaints or judgments filed against them. This can help you understand the company’s track record and determine whether they have a good reputation.
Finally, make sure to confirm that the company is properly registered with your state’s securities regulator or with FINRA. You can find this information online through FINRA’s BrokerCheck database.
Be Wary of High-Pressure Sales Tactics
It’s important to be aware of high-pressure sales tactics that could be a sign of fraudulent activities. One way to spot financial fraud is to be wary of salespeople who push you to buy investments quickly and promise you unrealistic returns. They may also pressure you to make large deposits or open accounts with them. Salespeople who use high-pressure tactics should always be a red flag when it comes to financial fraud. These individuals may appear to be legitimate, but they are more likely to be dishonest and have hidden agendas. Signs of a high-pressure salesperson include:
- Trying to pressure you into making quick decisions without giving you time to think
- Promising unrealistic returns on investments
- Offering exclusive deals or limited-time offers
- Claiming that their services are the only way to achieve your goals
- Asking for large deposits or transfers
- Refusing to answer questions or provide additional information
When dealing with salespeople, always take your time and don’t let yourself be rushed into making any decisions. If you have been a victim of financial fraud, contact a Hanover FINRA arbitration lawyer today at Crepeau Mourges.
