For brokers and investors, getting a notice that you’re being investigated by FINRA (Financial Industry Regulatory Authority) is an almost instant headache and fear-inducing event. In a single year alone, FINRA has investigated over 700 investors and brokers for fraud and other offenses, and while that’s not the only goal of FINRA (prosecution), it’s something that they frequently do when they suspect that an investor or broker is behaving inappropriately within their industry. Farar & Lewis LLP is a law group in Los Angeles that handles all forms of defense cases related to FINRA, and we’ve got a massive amount of experience in this area. If you need someone to help defend you against FINRA Rule 8210 charges, then we’re THE first to call in Los Angeles.
If you received a letter from FINRA, rest assured, it’s bad news at least in the beginning. It means you are being informally invested for violations related to Rule 8210 and you MUST comply and respond to this letter. So many brokers or investors might believe that they can simply ignore a FINRA letter, and this can turn into a career-ending mistake. Not responding is simply not an option. It’s law that you respond!
You must also comply with the investigation. They have the right to request documentation from your industry dealings, and they have every right to ask you for an oral interview. You can respond in a number of ways, such as writing, orally, or electronically, but you simply must respond, and when you do it’s to have a lawyer on your side who can respond for you. Being represented by a highly esteemed law firm certainly levels the playing field some. FINRA is a powerful organization. They are there to regulate behavior in the financial sector, so make sure that you have a good lawyer on your team when you go up against them.
You might be wondering WHY you received an inquiry. There can be a number of reasons that FINRA begins an investigation, but generally it’s because of complaints from customers, arbitration, problems with creditors, and other things that show FINRA something is not right about the way you are conducting yourself as an investor or a broker. FINRA is the largest independent regulator for the U.S. securities industry, and they are highly respected and there for a reason. There are certain rules that investors and brokers must follow in order to protect their own reputation and the financial assets of their clients. Clients must be able to trust investors and to do so, it’s a good thing that there is a regulatory body such as this to act on behalf of everyone in securities.
It’s absolutely normal to be stressed and worried about your notification from FINRA. You SHOULD be. With a good lawyer on your side, though, you’re going to fight through this and come out on the other side vindicated. Give us a call today to set up a free consultation.