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How Do I File a FINRA Arbitration? What Do I Do if My Broker Has Lost My Money?

You were stunned to see that your recent investment account statement shows that you’ve lost a lot of money. But your broker claims “everything is fine,” urges you just to “hold on” even though you are losing sleep or worse, now refuses to return your calls or emails. What can you do? These are often the first questions Malecki Law’s New York FINRA arbitration lawyers receive from investors upset and confused, often faced with large losses to their accounts.

Often, these are signs that there has been inappropriate and wrongful conduct performed by your broker. Your broker may have invested you in products you did not understand or want. Or worse, your broker may have stolen money from you. You may have to file an arbitration proceeding with FINRA, the Financial Industry Regulatory Authority, to recover your money. New York FINRA arbitration lawyers at Malecki Law file claims at FINRA on a regular basis.

The first major consideration is whether you should hire an attorney to represent you in your FINRA arbitration claim. Recent research has shown that investors who choose not to hire an attorney for their FINRA arbitration received an award in their favor only about one in four times. Your chances for success increase significantly by hiring a competent lawyer with substantial FINRA arbitration experience. There are many good lawyers, but when it comes to FINRA arbitration, you really need an experienced FINRA arbitration law firm in New York who does these types of cases specifically. The attorneys at Malecki Law have conducted FINRA arbitration proceedings on behalf of hundreds of investors, from intake through resolution.

Chances are, you already agreed to binding arbitration in the “fine print” of your account agreement when you opened your securities account. FINRA Arbitration Rules differ significantly from court rules. For example, unlike in court, discovery can be more limited, and there are very limited appeals permitted of arbitration awards. It is critical that your case be properly managed and presented to the Panel of Arbitrators hearing the dispute.

At Malecki Law, your case will begin with fact gathering. With your help, we compile and review all relevant documents and information to “tell the story” of the loss you sustained as an investor. Every investor’s story is different, so your case will be handled singularly and carefully. In most cases, we will review years’ of your statements and other investment documents, as well as all available emails and other correspondence exchanged between you and your broker. If you held many different accounts, an account analysis may be created to accurately calculate the full extent of your losses.

FINRA arbitration lawyers in New York at Malecki Law then draft and file your Statement of Claim to inform the FINRA Arbitration Panel of your case. While FINRA Rules only require that the Statement of Claim contain a statement of the relevant facts and remedies requested, it is the first document the Arbitration Panel reads, and first impressions matter. The experienced FINRA attorneys at Malecki Law will make sure that your Statement of Claim will weave the story of your interactions with your broker with relevant documentation and thorough research of the trading and conduct that occurred.

After the Statement of Claim is filed, the next critical step involves the selection of the Arbitration Panel. The Arbitration Panel is comprised of three arbitrators for claims of $100,000 and greater, and one arbitration for claims under $100,000. While disclosures made by potential arbitrators are often minimal, we research each proposed arbitrator, using in-house tools and research, to determine who may be most sympathetic to the claims alleged in the Statement of Claim.

Once pleadings have been filed, we then engage in discovery. During discovery, facts are gathered from the broker, their employing brokerage firm, third parties and public sources. Discovery is limited in arbitration, and you generally won’t have to give a deposition. Malecki Law attorneys will carefully review and catalogue the documents and information gotten through discovery to make sure your case is prepared for the final hearing. Motion practice, either with FINRA or in the local courts, may be necessary to compel the firm or other third parties to produce relevant documents.

While FINRA arbitration attorneys in New York prepare every case for the final hearing that may take place anywhere around the country, sometimes the parties may agree to engage in a confidential, non-binding process called mediation. Mediation is an effort by the parties to settle the case amicably before the final hearing. Many mediations occur privately outside of the FINRA arbitration, while the case continues to proceed toward the final hearing. Having handled securities arbitrations for investors for years, the attorneys at Malecki Law have built a deep understanding of the securities mediators who may be appropriate for your case. If you choose to engage in mediation, we will work closely with you to present your case for the mediator to provide the strongest position possible for settlement.

Not every case can be settled. If there is no settlement, the case then proceeds to the final hearing. The hearing is much like a court trial: there will be opening statements, testimony given by witnesses, evidence entered and closing statements. We utilize current trial technology, including data management and presentation software, to make sure your case is presented in the most effective way.

The attorneys at Malecki Law have handled FINRA arbitrations across the United States. If you have any questions about recommendations made or actions taken in your securities account, or any further questions regarding the FINRA arbitration process, please contact us for a free and confidential consultation.

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Testimonials From Former Clients
I highly recommend Jenice and her team at Malecki Law. I had a challenging, and lengthly case. Jenice was professional, very knowledgeable, and a pleasure to work with. She managed to make the process far less stressful during a very difficult time. They care about their clients, and it definitely shows. Mario
Jenice is truly a miracle worker and one of the top securities lawyers. She handled a very difficult case for us, displaying her legal knowledge, intelligence, and savviness throughout the process. I cannot recommend her enough. The quality of work from her team rivals that of corporate law firms. She was always available, extremely professional, and made sure to know all the details of the case. We were very fortunate to have been referred to Jenice and highly recommend her for any securities related legal issues. Nathan A.
An excellent professional who represented us in trial regarding a bank fraud, an unexpected and difficult time. A professional that worked hard, persevering and who stood toe to toe against firms that had a team of excellent lawyers backing them up. Her unflinching determination really stands out, it makes you feel you have someone who really cares about trying to recover what you lost from the people that wronged you. Salomon Levi
It is difficult to thank you in words when gratitude comes from the heart, so I will try to link feelings with writing. It is essential for us to mention your excellence as a professional, your aptitude on legal fields, and your unavoidable persistence. All of these virtues that elevate the profession you exercise in such an admirable way, go hand in hand with your sense of ethics, your human warmth and the transparency in your actions. To sum up, thank you for being a listening ear and for having the right word while transmitting information about the legal process. Having you as our representative during such an adverse situation was a privilege and enough reason for our eternal gratitude. Angeles Aparain
To say that my securities litigation was complex would be a severe understatement. With multiple parties involved and spanning many years, trying to understand the issues was daunting to say the least. Jenice and her team broke down the transactions by segment and by party uncovering every hidden expense. In the end, I was more than happy and could not thank Jenice and her team enough. I would not hesitate to recommend Jenice to anyone. She is highly professional, incredibly knowledgeable, well connected to industry experts, has a tireless work ethic and is so pleasant and easy to communicate with. Five stars for sure! Andrew Loughrane