Delray Beach & Boca Raton Area Securities Arbitration Firm
Securities, Mutual Funds, Bonds, Stock Fraud Attorneys
Securities arbitration is used to resolve the majority of customer securities fraud claims brought against brokers.
Under the Securities and Exchange Commission (SEC), Self-Regulatory Organizations (SROs) are given the authority to regulate disputes between SRO members and customers through arbitration. The two largest SROs on Wall Street, the National Association of Securities Dealers (NASD) and the regulatory, enforcement and arbitration functions of the New York Stock Exchange (NYSE) merged to create the Financial Regulatory Authority (FINRA) in July, 2007. FINRA now provides the forum that handles the majority of broker customer arbitrations.
Securities - A Regulated Industry
You can file complaints with the SEC. Your reports may even result in investigations, disciplinary actions or criminal charges taken against a stock broker or brokerage firm. However, the focus of the SEC is to correct and regulate the industry, not to recover money for you if your account has been mishandled resulting in lost savings or retirement funds. Your recovery of funds will be determined through arbitration.
For this reason, hiring a lawyer to represent you in securities arbitration proceedings is a wise decision. Arbitration proceedings follow rules established by the SEC and most likely will be arbitrated in a forum under FINRA.
Scarlett & Gucciardo has handled numerous securities arbitration proceedings against many Wall Street brokerage firms including, but not limited to the following:
|
|
Arbitration Process
A panel of one to three arbitrators conduct an arbitration proceeding to evaluate evidence and hear both sides of the case. The panel or arbitrator will arrive at a decision which is binding for both parties. Unlike court proceedings which involve an extensive pre-trial process consisting of formal discovery and depositions along with the possibility of appeal after judgment, the arbitration process does not utilize all of these formal procedures, nor does it go to the extent of a formal trial or allow for appeal except under extremely limited grounds.
As opposed to civil court procedures, arbitration serves as a more expedient and affordable means of resolving disputes, and for this reason, many brokerage firms incorporate arbitration clauses into their customer agreements. Such a clause waives the customer’s right to courtroom litigation as a means of settling a dispute. While a civil case may languish for several years before it is heard in a federal or state court, an arbitration proceeding, on average, is nine to twelve months from the date the claim is filed .
Arbitration Outcomes
Most arbitration cases settle prior to the arbitrator rendering a decision. According to the Securities Arbitration Commentator (SAC), periodical that provides an exclusive focus on securities and commodities arbitration, 80% of all customer cases settle in favor of the investor before an award is rendered. Legal representation through an attorney skilled in arbitration also increases chances for obtaining a favorable outcome. The skills and experience our securities lawyers bring to the arbitration table can make a significant difference in the outcome of your claim
Please see our section entitled Am I a Victim? for more information regarding types of broker misconduct.
If you are considering a securities fraud claim against a brokerage firm or stock broker for broker misconduct or negligence, please contact Scarlett & Gucciardo, P.A. online or at (561) 278-6707 to arrange a free consultation with one of our lawyers. Our firm will evaluate your case and if represented, no fees are due unless there is a recovery on your behalf.
