The Financial Industry Regulatory Authority (FINRA) recently released a
statement warning investors that a number of non-lawyer representatives
have exploited customer claimants they represented in FINRA’s arbitration
and mediation forum.
FINRA was made aware of this issue after customer claimants made allegations,
reporting that their representatives took settlement money they were aware
of, were represented without first securing consent from the claimant,
and by charging non-refundable deposits totaling as much as $25,000.
FINRA is also concerned that few, if any, of these non-lawyer representatives
have malpractice insurance. Addressing these concerns is expected to be
one of its top priorities in 2018. It will likely send out a regulatory
notice to seek comment on what actions should be taken. Some options on
the table include issuing a guidance on what customer claimants should
be considering when they hire non-lawyer representatives, or outright
barring non-lawyer representatives in arbitration and mediation forums.
While FINRA’s current rules permit non-lawyer representatives, there
are certain exceptions when this is not permitted like when the chosen
representative is disbarred or currently suspended, barred or suspended
from the securities industry, or in cases where state law does not permit
a non-lawyer representative.
If you were taken advantage of by a non-lawyer representative, contact
the law firm of Meyer Wilson today. Our investment fraud attorneys have
spent nearly two decades representing clients throughout the United States,
and through our efforts we have recovered more than $350 million in verdicts
and settlements. Start out with a free consultation by
providing us the details of your case through our online form, or call us at one of our offices today to discuss your case with one
of our attorney over the phone.