Baldwin Mader Law Group Baldwin Mader Law Group
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FAQ

  • ANSWERS ABOUT CALIFORNIA INVESTMENT FRAUD

    • Do you charge for travel time?

      No. Our firm can handle FINRA cases outside of the West Coast for the same cost as local counsel.

    • Which areas do you serve?

      We focus on California, Washington, Arizona, Oregon, Nevada, the Midwest, and the East Coast.

    • How many cases have you handled?
      We have handled over 600 cases over 35 years.
    • I Need Someone With Experience. Will Your Attorneys Handle My Case Directly?
      Yes. Our financial fraud attorneys take a team approach to every case we handle.
    • How Does Investment Fraud Occur?

      Investment fraud can take many forms. For example, it may be the result of a Ponzi scheme, penny stocks, concentration in one type of security, unsuitable investments, and other forms.

      Some examples of investment fraud include:

      • Churning an account
      • Misrepresentation
      • Ponzi schemes
      • Concentration in one stock or industry
      • Unsuitable investments
      • Using proceeds for undisclosed purposes
      • Failure to disclose material facts
      • Projection of unrealistic returns
      • Failure to disclose risks
    • What is Securities Fraud?

      Securities fraud occurs when a broker-dealer, investment firm, registered investment advisor, registered representative, sponsor, or promoter misrepresents an investment. When important information is withheld or a fact misrepresented, the investor may lose money.

  • FINRA ARBITRATION FAQ

    • Are the arbitrators required to follow the law?
      Although some states may allow a very limited potential right of appeal for “manifest disregard” of the law, generally panels are not required to follow the law since FINRA Arbitration is considered an “equitable” forum. This means the panel has great discretion to make a determination and fashion an Award.
    • Does FINRA arbitration favor the broker-dealer?

      No. FINRA panels are intelligent fact finders who will decide the case on the merits.

    • What does it mean that FINRA arbitration is "binding"?

      Except in extraordinarily limited circumstances, you will not be able to appeal a FINRA Award.

    • Is the hearing public?

      No, the hearing is private. The hearing is held either in a conference room at the regional FINRA office or in a hotel conference room.

    • How long will it take to get my case to hearing?

      Generally, one year from the date of filing the Statement of Claim. FINRA tries to expedite the case if the Claimant is elderly.

    • How are the arbitrators selected?

      FINRA arbitrators are local lawyers and people from the securities industry who agree to serve on panels. Each panel has two members from the public, typically lawyers, and one member from the securities industry.

    • How does FINRA arbitration work?

      The public customer files a written Statement of Claim at FINRA. The Broker-Dealer and/or Registered Representative file a written response to the Claim. Through a joint elimination process the parties jointly select an Arbitration Panel. Discovery is conducted by the parties and documents are exchanged. If the case does not settle, a hearing is conducted before the full panel. A hearing usually takes 3-5 days. The panel hears the evidence and 30 days after the conclusion of the hearing issues a written Award. The Award usually does not state the reasoning for the decision.

    • How is FINRA Arbitration different than being in court?

      FINRA Arbitration is faster, significantly cheaper and private. Except for the “in person” hearing at the end of the case, the vast majority of the case is conducted via mail and via telephone. Motions to Dismiss are disfavored in FINRA Arbitration. This means that absent a settlement before the hearing the case will go to hearing. Unlike court, FINRA Arbitration is binding with no right of appeal. There are no depositions in FINRA Arbitration and no right to a jury trial. The case is heard by a three member panel.

    • Am I required to arbitrate my dispute with my broker?

      Yes, generally. The account agreement you signed to open your securities account most likely contains a provision requiring you to bring any claims in arbitration at FINRA.

    • What is FINRA Arbitration?

      The Financial Industry Regulatory Authority (“FINRA”) is the self-regulatory body of the securities industry. FINRA provides a forum for public customers to bring claims against Broker-Dealers and Registered Representative members of FINRA.

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Securities transactions are often difficult to analyze. Determining whether you have been the victim of Investment fraud, securities fraud or financial elder abuse is daunting. You are welcome to contact us for a consultation. When you call, you will talk to a partner at the firm, not a non-lawyer administrative person.

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