Stock Fraud Recovery Process

The following steps outline the process:

Evaluate & Interview

Evaluate the potential case through interview & review of documents

Claim Filing

File a claim through the financial industry regulatory authority (FINRA), the organization that regulates the brokerage industry

Select Arbitors

Select an arbitration panel.  Usually a panel of 3 individuals who have qualified as arbitrators.

Set a date

Have a hearing with arbitration panel to establish a date for hearings.


Conduct a discovery process where a claimant obtains information from a respondent.  This sometimes involves having the arbitration chairman resolve disputes over what is to be produced.

Build the case

As hearing date approaches, determine what witnesses will be called and what documents will be presented.

Claims Award

Go to hearing where evidence in the form of testimony and document will be presented to the arbitration panel who will issue an award that either denies or grants the claim.

If the award is in favor of the claimant, the panel will then determine monetary damages and how the arbitration fees are to be paid by the various parties.

The panel also has the discretion to refer any brokerage firm or broker to FINRA for investigation and possible disciplinary action.