FINRA is Postponing All In-Person Arbitration Proceedings Scheduled through July 3, 2020

FINRA announced yesterday that due to the continuing covid-19 disease pandemic all in-person arbitration and mediation proceedings scheduled through July 3, 2020 are administratively postponed. Parties who have cases scheduled for in-person hearings through that date will be contacted by FINRA staff about the options of rescheduling the hearing or proceeding with a remote hearing conducted via Zoom. The postponement … Read More

SEC, Justice Department Begin Investigations of Senator Burr, Others

On March 25, 2020, I wrote about a lawsuit filed against North Carolina Senator Richard Burr over his dumping of stocks in the early days of the covid-19 pandemic. In the complaint, a shareholder of Wyndham Hotels and Resorts alleged that Senator Burr sold his stock portfolio based on non-public “insider” information. In late February 2020, Burr, who is chairman of … Read More

Senator Burr Sued for Insider Trading in Violation of the STOCK Act

Two days ago, North Carolina Senator Richard Burr was sued by a shareholder in Wyndham Hotels and Resorts in the United States District Court for the District of Columbia. In the complaint, the plaintiff alleged that Senator Burr decided to sell his stock portfolio based on non-public “insider” information. According to news reports, in late February 2020, Burr, who is … Read More

FINRA Arbitration Claims Likely to Spike due to Current Market Crash

At present, the stock market appears to be in free-fall, with most major market indices down approximately 25% in the past two weeks. The extent of the current crash and the duration of the recovery will likely depend on the extent and duration of the coronavirus crisis and the oil price trade war between Saudi Arabia and Russia. Absent a … Read More

Does Your Securities Broker or Investment Advisor have Errors and Omissions Insurance?

When shopping for an investment firm, or during your next meeting with your financial professional, ask whether the firm carries errors and omissions insurance. This type of insurance, also known and “E&O coverage,” insures against claims made by customers against their investment professionals. Unpaid arbitration awards remain a significant focus of regulators, legislators, and investor advocates. According to data published … Read More

Edward Jones Twice Denied Injunction Requests Against Ex-Brokers

In two cases decided within the last 30 days, Edward Jones was denied requests for injunctions against former brokers it accused of stealing trade secrets and soliciting customers. Edward D. Jones & Co., L.P. v. Michael Peterson, Case No. 2:19-dv-01968-JCM-EJY (D. Nev. December 6, 2019) and FINRA arbitration case 19-03340 (December 3, 2019) On November 8, 2019, broker-dealer Edward D. … Read More

Investor Advocates Call on FINRA to Immediately Stop the Expungement of Customer Complaints

The Public Investor Arbitration Bar Association (known as PIABA) is a nationwide association of attorneys who advocate for investors through litigation and arbitration and regulatory reform. In a report prepared by The PIABA Foundation, titled 2019 Study on FINRA Expungements, A Seriously Flawed Process that Should be Stopped Immediately to Protect the Integrity of the Public Record, PIABA called upon … Read More

Investment Adviser Permanently Barred over Conflicts of Interest, Failure to Disclose, and Violation of Best Execution Rules

I previously wrote about the SEC’s increased emphasis on the enforcement of an investment advisor’s obligation to provide its customers with the “best execution” of recommended securities trades. See SEC Announces Results of Share Class Selection Disclosure Initiative (March 19, 2019). A recent court decision, from the Tenth Circuit Court of Appeals, illustrates the serious consequences that can result from … Read More