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As a Superlawyers-rated Finra Arbitration Attorney, Daniel A. Bakondi, Esq. has successfully obtained millions of dollars in recoveries fighting for his clients

in securities disputes and investment loss matters.  

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Having brought dozens of financial institutions to arbitration, it is our business to know how to recover your investment and securities loss.  We represent investors seeking financial recovery for investment losses in claims against brokers, financial advisors, and FINRA registered broker-dealer financial institutions in Finra arbitration customer claims, and in securities litigation in state and federal court.   

 

If you have unexpected losses for a significant portion of your investment, retirement, or total net worth, you should speak with a qualified attorney now.  It may not be your fault, nor the fault of the market.  There may be much about the investment and how it was sold to you that you are unaware of.   

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Only an experienced securities and investment loss lawyer can tell you if your broker, financial advisor, or financial institution violated securities laws and industry practices, failed to disclose risks, acted without your authorization, failed to diversify, or acted with a conflict of interest. Your advisor will never tell you what rules and disclosures they violated in selling you these investments.  We will.

 

Your right to a recovery through a lawsuit or FINRA securities arbitration claim may derive from:

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• Biased stock and investment recommendations

• Too risky/speculative investments

• Unsuitable investments

• Failure to do due diligence

• Material omissions and misrepresentation

• Breach of contract

• Securities fraud

• Breach of fiduciary duty

• Bad/negligent recommendations

• Malpractice

• Ponzi scheme

• Pyramid scheme

• Bad sponsor manager

• Failure to diversity

 

Securities arbitration law firm services also include:

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• FINRA mediation representation services

• FINRA arbitration claims for Bitcoin, Ethereum, and other cryptocurrency and digital currency assets and 

• FINRA claims against broker dealers, investment advisors, financial advisors 

• Arbitration claims from filing through hearings

• FINRA arbitration of tenancy in common/tenant in common (TIC) investments

• Lawsuits/claims against brokers, investment advisors for failure to do due diligence

• Claims against brokers, investment advisors for breach of fiduciary duty

• Claims against brokers, financial advisors for selling an unregistered security

• Claims for selling unqualified securities, unregistered securities, to non-accredited investors

• Prospectus Fraud

• State/Federal securities law violations

• Violation of industry practices 

• Failure to inform of tax consequences

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We handle broker, financial advisor, and broker-dealer firm malpractice and violations including:

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• Securities fraud, stock broker and investment fraud

 

Securities fraud can include misrepresentation or failure to disclose material facts about an investment, institution, or selling process.  It may involve failure to disclose a broker commission, or the relationship between the broker and the investment.   As an investor may not know what material facts went undisclosed in the course of making an investment.  Private Placement Memorandums (PPM) which contain facts, information, and projections about the investment must be closely compared to the facts at the time.  As FINRA arbitration attorneys, we often have access to information, appraisals, broker-dealer communications, and other undisclosed materials and facts, which, had the investor been aware of, would have made a material difference in the decision to invest.  

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• Negligence and breach of the duty of care 

 

Negligence includes not only careless conduct by a broker or financial institution, but failure to follow the rules, guidelines, and laws regarding the sale of investments that exist to protect investors.  

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• Unsuitability or selling unsuitable investments

 

Not all investments are suitable for all investors.  The same investment may in some cases be more appropriate for a sophisticated, young, wealthy individual who understands its nature and risks, and yet not an appropriate recommendation for an elderly or retired investor who is not knowledgeable, who may have medical needs, or have other relevant factors.  

 

A second reasonable basis suitability test under FINRA guidelines makes some investments are poorly structured, that they are not of sufficient quality and reliability for any investor.

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• Overconcentration

 

Overconcentration is the recommending of investments that place more than 20% of an investor's assets into one asset class (or one type of investment). 

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• Failure to supervise, and negligent supervision

 

Finra arbitration claims often involve a broker dealer or investment brokerage firm, possibly one the investor has not even aware was behind the transaction.  Yet, these broker dealer firms are responsible for supervising the broker, and approved the investment for sale.    

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• Failure to do due diligence 

 

Broker dealer firms are required to approve every investment sold through them, and every transaction sold by the brokers under them.  They have an affirmative duty to research investments, and understand their quality, the background on the principals, and ensure that the investment is what it purports to be.  Many broker dealers fail to do this, and fail to verify sponsor claims regarding investments they then sell to investors, such as relating to the product's financials.  This is a violation of the brokers' and brokerage firm's duty to the the investor as a fiduciary.  As FINRA arbitration attorneys, we focus on understanding exactly what due diligence and independent research was done, what documents were obtained, and what aspects of the investment were assessed and evaluated.  Such documents are often only available after we file a claim and demand these documents and records as part of the arbitration discovery process.
 

FINRA securities arbitration claims may also involve:

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• Securities fraud involving stocks, bonds, funds and annuities

• Selling away

• Sale of non-conventional investments

• Breach of fiduciary duty 

• Overtrading

• Unauthorized trading

• Churning

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Frequently Asked Questions:

 

 

What is FINRA Arbitration?

 

FINRA arbitration is another forum for resolving disputes, like going to court, often with many advantages over going to court.  

 

FINRA is the Financial Industry Regulatory Authority, formerly NASD (National Association of Securities Dealers) and is the licensing department of the SEC (Securities and Exchange Commission).  All securities brokers, broker-dealers (firms that sell securities) must have a license to sell securities, and are regulated by FINRA. 

 

When a broker or broker-dealer violates selling practices or the law, they may have liability under the law, including on some cases to return the investor's investment capital, or compensate the investor financially for their loss.

 

Is FINRA Arbitration better than court? 

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Often times, FINRA arbitration is faster and more efficient than court.

 

Is Finra arbitration mandatory?  

 

Finra arbitration is mandatory for all registered representatives, brokers, and broker dealer investment institutions, like court.

 

How long does Finra arbitration take?

 

Finra arbitration can take as little as one year from filing of a claim to going to an evidentiary hearing, the equivalent of a trial.  Court is likely to take longer, possibly 2-4 years on average to get to trial. 

 

Is Finra arbitration binding?

 

Yes, Finra arbitration is binding, like a court judgment, and there are no appeals.  The Finra arbitration award can be perfected into a legal judgment requiring compensation to be paid to the investor.

 

Do brokers and broker dealers have to pay the amount of a Finra award?

 

Yes, under Finra rules, they are required to pay any amount the Finra arbitration panel determines the investor is entitled to.  In fact, brokers and broker dealers can risk losing their license to sell securities if they do not comply with a Finra arbitration award.

 

Do I need an attorney for Finra arbitration?

 

The securities litigation and arbitration world is complex. Even an investor with a strong case may not prevail without the proper and experienced guidance of a Finra Arbitration Attorney.  Similarly, the reason in criminal law that criminal defendants are provided an attorney even if they cannot afford one, is that without proper legal counsel, even an innocent man is likely to be convicted. 

 

Our legal team works in all areas of securities laws and broker disputes, often know the legal issues, the opposing counsel, the opposing firms and brokers, their insurance status, likely defenses, and have often litigated against them before.  We are able to maximize your recovery dollar.  

 

Our securities arbitration attorneys handle the entire process, and you may receive a financial settlement without ever having to go to trial.  FINRA securities arbitration is often faster and more effective than litigating in court.

Whether you believe you have a case or not, contact us now for a free no-obligation confidential consultation.  You must act before your rights expire.   

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Sometimes, Mr. Bakondi takes cases on a contingency fee basis, meaning there are no attorney fees unless there is a recovery to you, and attorneys fees are a percentage of the recovery obtained for you.  

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Please contact Attorney Daniel Bakondi today for a free consultation, and to discuss details about possible representation of your case.

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Securities Fraud and FINRA Arbitration Attorney for Investment Loss Recovery from Investment Fraud and Financial Advisor Errors and Negligence

 

If you have a loss of a large unexpected investment losses, business losses, or a significant portion of your portfolio or retirement, it may not be your fault.  Your broker or financial advisor will not tell you what rules, laws, and industry standards he or she may have violated.  He or she will not tell you what they failed to disclose.  We will.  

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Some causes for investment loss include a broker or financial advisor's failure to do due diligence before approving an investment for sale, failure to diversify, "overconcentration" into one asset class, breach of fiduciary duty/breach of loyalty, failure to disclose all material facts and risks, and failure to properly assess the investor's goals and recommend appropriate investments are very common breaches of the relationship of trust between investors and brokers, financial advisors, or investment professionals.  Securities transactions can involve misrepresented or undisclosed facts or risks.  This may constitute securities fraud or investment fraud, stock broker fraud, broker misconduct, breach of fiduciary duty or other violations.  Mr. Bakondi's practice involves complex stock broker, financial advisor, and broker-dealer malpractice actions in both securities litigation and as a FINRA arbitration attorney.

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 Finra arbitration of Cryptocurrency investment losses, Bitcoin, Ethereum  

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Has a licensed broker invested you in digital currencies to realize a substantial loss?

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• Securities fraud lawsuits

• Cryptocurrency Bitcoin exchange market trading platform losses; Bitcoin, Ethereum investment, litigation and arbitration attorney services

• Oil and Gas and Energy Securities Investment losses and FINRA Arbitration Attorney Services

• Private Placement investment losses

• Commodities losses

• Securitized real estate/tenant in common 1031 TICs investment losses

• Non-traded REIT (real estate investment trusts) investment losses 

• Alternative investment and non-conventional investment losses

• ETFs investment losses

• Stock market losses

• Loan funds, investment notes, bond funds, commodities, churning, options lost money

• Stock price drop losses and stock manipulation

• Stockholder rights violations

• Auction rate securites

• Complex derivatives

• Penny stocks

• Options

• Sale of unsuitable, overly risky, or speculative investments

• Third Party Custodians of Self-Directed IRAs (http://www.nasaa.org/33698/informed-investor-advisory-third-party-custodians-self-directed-iras-qualified-programs/)

• Any other large investment or business loss 

 

Only a knowledgeable investment fraud attorney can tell you whether the other party breached industry practices and the law.  Such breaches cost investors millions.  

 

As a FINRA Arbitration Attorney, Daniel Bakondi brings dozens of lawsuits nationwide in court and FINRA securities arbitration for investment losses, and often recovers cash settlements for investors.   FINRA Arbitration is a lower-cost dispute settlement forum created by the Financial Industry Regulatory Authority (FINRA) formerly NASD (National Association of Securities Dealers). 

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Mr. Bakondi also litigates claims arising from improper sales of securities, unregistered securities and unlicensed sale of securities.  For details, and an assessment of your case, please contact Mr. Bakondi for a consultation.  

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If your investment has suffered any dramatic and unexpected loss in value, whether stock, mutual fund, ownership of a corporation, interest in a reit,or other investment, based on any information or misinformation, you should be aware of the law regarding your circumstances. 

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Mr. Bakondi often takes many cases on a contingency fee basis, meaning he only gets paid a percentage of the cash recovery you receive.     

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Which investment firms have the highest numbers of complaints against brokers regarding investments?

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According to reporting by Securities Litigation Consulting Group (SLCG) :

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https://www.linkedin.com/pulse/2024-brokerage-firm-risk-rankings-craig-mccann-gtbce

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The owner of SLCG, per this notice has put out a warning on brokerages in 2024, including:

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• Centaurus Financial, 

• Aegis Capital, 

• Western International Securities, 

• Independent Financial Group, 

• Berthel Fisher, 

• Crown Capital, 

• Calton, 

• JW Cole, 

• United Planners, 

• Money Concepts, 

• Kovac Securities, 

• Oppenheimer, 

• Cetera, 

• Wedbush, and 

• Triad Advisors.

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Additionally, reports on 2023 numbers include:

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Worst firms by current Broker's history of resolved complaints:

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1. ARETE WEALTH MANAGEMENT

2. AEGIS CAPITAL

3. CENTAURUS FINANCIAL

4. MADISON AVENUE

5. WESTERN INTERNATIONAL

6. INDEPENDENT FINANCIAL

7. GREAT POINT CAPITAL

8.   BERTHEL FISHER

9. CROWN CAPITAL SECURITIES

10. B RILEY WEALTH

11. MUTUAL SECURITIES

12. JW COLE FINANCIAL

13.   KOVACK SECURITIES

14.   CALTON ASSOCIATES

15.   INNOVATION PARTNERS

16.   INSIGNEO SECURITIES

17.   IFP SECURITIES 

18.   UNITED PLANNERS' FINANCIALSERVICES OF AMERICA

19.   AGP / ALLIANCE GLOBAL

20.   OPPENHEIMER

21.   MONEY CONCEPTS CAPITAL

22   VANDERBILT SECURITIES

23   OSAIC INSTITUTIONS

24   LION STREET FINANCIAL

25   TRIAD ADVISORS

26   BANKERS LIFE SECURITIES

27   MOMENTUM INDEPENDENT NETWORK

28   PROSPERA FINANCIAL SERVICES

29   PACKERLAND BROKERAGE SERVICES

30   JANNEY MONTGOMERY SCOTT

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The worst firms by firms' history of resolved complaints:

 

1 CENTAURUS FINANCIAL

2 AEGIS CAPITAL

3 WESTERN INTERNATIONAL

4 NATIONAL SECURITIES

5 BERTHEL FISHER

6 CROWN CAPITAL SECURITIES

7 AUSDAL FINANCIAL PARTNERS

8 FIRST ALLIED

9 SANTANDER SECURITIES

10 TRIAD ADVISORS

11 BOK FINANCIAL SECURITIES

12 INDEPENDENT FINANCIAL

13 FORTUNE FINANCIAL SERVICES

14 CETERA

15 UNITED PLANNERS' FINANCIAL SERVICES OF AMERICA

16 OPPENHEIMER

17 WEDBUSH SECURITIES

18 VOYA FINANCIAL

19 MONEY CONCEPTS CAPITAL

20 CALTON ASSOCIATES

21 GENES WEALTH MANAGEMENT

22 APW CAPITAL

23 CUNA BROKERAGE SERVICES

24 JW COLE FINANCIAL

25 VR FINANCIAL

26 MUTUAL SECURITIES

27 PROSPERA FINANCIAL SERVICES

28 NEXT FINANCIAL GROUP

29 KOVACK SECURITIES

30 BANKERS LIFE SECURITIES

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Worst firms by broker's history of pending complaints:

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1 CENTAURUS FINANCIAL

2 AEGIS CAPITAL

3 ARETE WEALTH MANAGEMENT

4 WESTERN INTERNATIONAL

5 GREAT POINT CAPITAL

6 INNOVATION PARTNERS

7 MADISON AVENUE

8 INDEPENDENT FINANCIAL

9 IFP SECURITIES

10 VANDERBILT SECURITIES

11OSAIC INSTITUTIONS

12 FORTUNE FINANCIAL SERVICES

13 JW COLE FINANCIAL

14 CALTON ASSOCIATES

15 B RILEY WEALTH

16 BERTHEL FISHER

17 KOVACK SECURITIES

18 MONEY CONCEPTS CAPITAL

19 STIFEL INDEPENDENT ADVISORS

20 UNITED PLANNERS' FINANCIAL SERVICES OF AMERICA

21 CROWN CAPITAL SECURITIES

22 MOMENTUM INDEPENDENT NETWORK

23 NEXT FINANCIAL GROUP

24 KESTRA INVESTMENT SERVICES

25 PRIVATE CLIENT SERVICES

26 GENEOS WEALTH MANAGEMENT

27 OPPENHEIMER

28 CETERA

29 M HOLDINGS SECURITIES

30 PURSHE KAPLAN STERLING

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Overall worst firms:

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CENTAURUS FINANCIAL

2 AEGIS CAPITAL

3 WESTERN INTERNATIONAL

INDEPENDENT FINANCIAL

5 BERTHEL FISHER

6 CROWN CAPITAL SECURITIES

7 CALTON ASSOCIATES

8 JW COLE FINANCIAL

UNITED PLANNERS' FINANCIAL SERVICES OF AMERICA

10 MONEY CONCEPTS CAPITAL

11 KOVACK SECURITIES

12 OPPENHEIMER

13 CETERA

14 WEDBUSH SECURITIES

15 TRIAD ADVISORS

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And here are the worst firms by pending customer complaints per the 2017 report:

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1. 1  SANTANDER SECURITIES LLC

2. 2  NEWBRIDGE SECURITIES CORP

3. 3  BERTHEL, FISHER & COMPANY

4. 4  UBS FINANCIAL SERVICES INC.

5. 5  NATIONAL SECURITIES CORP

6. 6  AEGIS CAPITAL CORP.

7. 7  NEXT FINANCIAL GROUP , INC.

8. 8  MID ATLANTIC CAPITAL CORP

9. 9  DAVID LERNER ASSOCIATES, INC.

10. 10  GENEOS WEALTH MANAGEMENT

11. 11  INDEPENDENT FINANCIAL GRP

12. 12  WESTERN INTERNATIONAL SECU

13. 13  SUMMIT BROKERAGE SERVICES

14. 14  MORGAN STANLEY & CO. LLC

15. 15  CENTAURUS FINANCIAL, INC.

16. 16  OPPENHEIMER & CO. INC.

17. 17  HARBOUR INVESTMENTS, INC.

18. 18  CETERA ADVISORS LLC

19. 19  H. BECK, INC.

20. 20  WUNDERLICH SECURITIES, INC.

21. 21  WEDBUSH SECURITIES INC.

22. 22  STERNE AGEE FINANCIAL SERV

23. 23  SIGMA FINANCIAL CORP

24. 24  AUSDAL FINANCIAL PARTNERS

25. 25  QUESTAR CAPITAL CORP

26. 26  CADARET, GRANT & CO., INC.

27. 27  KOVACK SECURITIES INC.

28. 28  CFD INVESTMENTS, INC.

29. 29  FINANCIAL WEST INVESTMENT

30. 30  PROEQUITIES INC.

 

And the worst 10 firms rated for complaints over illiquid products:

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1. 1  BERTHEL, FISHER & COMPANY

2. 2  SIGMA FINANCIAL CORP

3. 3  INDEPENDENT FINANCIAL GROUP

4. 4  GENEOS WEALTH MANAGEMENT

5. 5  SECURITIES AMERICA, INC.

6. 6  CENTAURUS FINANCIAL, INC.

7. 7  QUESTAR CAPITAL CORP

8. 8  FIRST ALLIED SECURITIES, INC.

9. 9  NEXT FINANCIAL GROUP , INC.

10. 10  CROWN CAPITAL SECURITIES, L.P.

 
* All the above based on this report, and reports and statements by SLCG and its principal:

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http://www.slcg.com/pdf/workingpapers/Rating%20Brokerage%20Firms%20by%20Their%20Complaint%20Histories.pdf

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https://www.linkedin.com/pulse/2024-brokerage-firm-risk-rankings-craig-mccann-gtbce

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Finra arbitration mediation attorney representation

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Often, unrepresented parties or parties without qualified representation in FINRA arbitrations will find themselves with the possibility of attending mediation. It is not too late to bring in a qualified attorney to help assess your case, represent you in the arbitration as well as mediation, and maximize your result. Here is more on FINRA arbitration mediation strategy and lawyer representation. 

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The law limits your time to take legal action.  After, your time to file a claim expires, preventing you from receiving a settlement you may otherwise be entitled to in a recovery action for your investment loss.  Contact us and speak to a FINRA arbitration attorney today.

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