Tennessee Securities Arbitration

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Tennessee FINRA Arbitration Attorneys Protecting Investors

FINRA arbitration can serve the interests of Nashville investors

The Financial Industry Regulatory Authority (FINRA) securities arbitration process is a legal solution to drawn-out, complex and expensive court cases after financial malfeasance. The best way to handle FINRA arbitration is to avoid the necessity in the first place. Doing personal research and following industry best practices can help. But even with every precaution, some brokers will still violate the trust of their investors.

For Tennessee investors who have experienced this transgression, the Tennessee FINRA arbitration attorneys at The Frankowski Firm are prepared to come to their aid, representing their interests and guiding them through the complex but necessary process.

The vulnerable investor “type”

Through years of studying the investors who end up in securities arbitration, FINRA has compiled a list of traits can lead to abuse by unsavory financial brokers. Not every investor with a few, most or even all of the traits will be betrayed; however, in addition to understanding what type of client is susceptible, it also explores what traits help protect against financial fraud and misconduct.

  • Household size. Individuals who live alone and do not run their financial decisions past another adult are more at risk.
  • The best way to prevent scams is to evaluate investment professionals based on the background, looking for any history of wrongdoing. Another factor to check is whether the broker’s licenses are valid and up to date. All this information is freely available online.
  • Looking for a deal. It may be counter-intuitive, but investors who are actively looking to find an angle or invest in proven start-ups may be more likely to be led astray by promises of undiscovered opportunities.
  • Unreasonable expectations. Investing is a good way to make money, but doing so is never guaranteed and rarely happens overnight. Investors who are seduced by promises of extravagant returns in record times are at risk of fraud. There are no guarantees in investing.
  • Following everyone’s advice. If you’ve done your research and hired a well-reputed investment professional, the next logical step is to take his or her advice and no one else’s. If a friend, co-worker or other acquaintance had real insight into the financial world, he or she would work in the field.
  • Getting something for free. Going to an investment “seminar” that promises a free meal is unwise. This is another persuasion tactic, like claiming an investment is “guaranteed” to make money. Those who attend these types of seminars are three times more likely to become victims of investment fraud.
  • Accepting cold calls. Wise investors know a sales pitch when they hear it, and either ask probing questions or refuse to listen. The investments that are successful are never lacking investors and don’t need to solicit support via unrequested phone calls.
  • Investing money you cannot afford to lose. Because the financial world cannot offer any promises to returns, investing any money you cannot survive without is heedless and dangerous. Another risk factor for investment fraud is having recently experienced a negative life event, like a health crisis, the death of a loved one or losing a house. This type of loss can make people less diligent about research and less inclined to be cautious with their funds.

It should not be a surprise, given this list of vulnerabilities, that older adults and senior citizens are victims of fraud at a significantly higher rate than any other category of investors. Sadly, even going to an investment professional who specializes in seniors or the elderly is no guarantee of avoiding fraud: any broker is a risk if you don’t perform your own due diligence before, during and after each interaction.

For Tennessee investors, legal support can be essential during FINRA arbitration

Whether you are a senior citizen who had his or her trust abused or a conscientious investor who took every precaution, the feelings of betrayal are the same. That is when you need to reach out and surround yourself with a healthy, supportive network that can help you get restitution and justice. The Frankowski Firm serves clients in Nashville and throughout Tennessee in cases involving both traditional and simplified arbitration. To learn more about our services or to schedule a consultation with a Tennessee FINRA arbitration attorney, please call 888.741.7503 or fill out our contact form.

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