Unpaid Awards: FINRA Publishes List Of Arbitration Awards In Arrears Along With Names

Investors who have gone through FINRA arbitration claims against closed boiler-rooms know that collecting an award can be a problem. Brokers and broker-dealers who have actions filed against them are also required to pay fees, as well as any financial restitution they are ordered to pay.

While most of these arbitration actions result in some form of restitution for the defrauded investor, FINRA reports that about 2% of these cases are never paid. Now FINRA has a single page on its website where you can look up companies and brokers who have left their obligations unpaid. The information is available through BrokerCheck on an individual basis, but this is the first time it has been available collectively.

The list includes the names of firms and individuals whose FINRA registration has been terminated, suspended, canceled or revoked, as well as those expelled from FINRA. The list contains names of the people and firms who failed to pay a monetary award within the required 30 days and failed to comply within the 21-day follow-up notice. Individuals and firms who failed to pay and listed bankruptcy as their defense are also included.

The unpaid obligations are from 2012 through 2016.

Congress is also interested in addressing the problem. In July, Sen. Elizabeth Warren, D-Mass., proposed a bill that would require FINRA to establish a fund using FINRA monies to cover the unpaid awards. Many investors are shocked to learn how little capital most firms maintain and FINRA does not require brokerage firms to be insured.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.