Stockbroker Law - Thursday, December 05, 2013
Securities Brokers Can Now Completely Wipe Their Public Records Clean −Securities Fraud Lawyer Explains What This Means For You and Your Business
Do you trust your securities broker? If you’ve invested your retirement accounts, life savings or business funds with your broker, the answer is an obvious ‘yes’. And maybe your trust is well-founded because:

a) the broker works for a reputed financial institution

b) you have done all your background checks and the broker’s public records are clean

But securities fraud lawyer, Timothy J. O’Connor cautions investors – securities brokers can wipe complaints and even legal claims off their public records. Here is evidence of this:

• May 24th, 2013 - According to The NY Times, FINRA (Financial Industry Regulatory Authority) of arbitrators granted broker Michele Kief’s (from Wells Fargo, WFC) request to delete a securities complaint (in which the bank settled for $125,000 allegations of fraud and negligence related to her actions). The complaint was completely taken off her records. In addition, FINRA agreed to note that the investments in question were ‘suitable and safe’.

• In February 2013 – FINRA arbitrators consented to and recommended the deletion of a securities arbitration complaint against ex-Charles Schwab (SCHW) executive, Kimon P. Daifotis. This was in spite of the complaint being the eighth such allegation against Daifotis, who ran the Schwab Yield Plus fund which resulted in investors losing hundreds of millions of dollars. Security fraud lawyers and investment fraud attorneys in Albany, NY can help explain the complexity of this situation—although FINRA is the responsible authority in place to advise investors to check a broker’s record via BrokerCheck (FINRA’s regulatory database), FINRA arbitrators can also wipe that same record clean if requested to do so.

So what does this mean for you as a securities investor? Comments from a securities fraud lawyer:

• In most cases, before setting up an account, a broker insists that clients agree to surrender the right to file a legal complaint in court.

This means that brokerage firms and their employees don’t, and won’t have to contend with having a court record. Therefore, any allegations such as the ones above can be resolved in private without legal intervention.

• So the only place where an investor can find a record of securities allegations against a broker is BrokerCheck. This includes client complaints, criminal histories, bankruptcies, liens, regulatory actions, etc.

An investment fraud attorney can help ensure you know your legal rights should your securities broker invest your funds in a negligent or fraudulent manner.

To protect your investments, contact securities fraud lawyer Timothy J. O’Connor or visit our website. For more information, please call Stockbroker Law at 518-426-7700 and ask for a FREE CONSULTATION today.


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