Securities, Arbitration, and Mediation

Synopsis

Recent rule changes and events in financial marketplaces have brought fundamental changes to securities arbitration and mediation. A premier panel of experienced practitioners, including the President of FINRA Dispute Resolution, examines rule changes, recent decisions, and future developments. The panel provides practical suggestions and tested advice on prosecuting and defending securities arbitrations and mediations.



Outline

I.   Securities Act
      A. History of Securities Act
II.  Breaking News From FINRA
      A. Three New Happenings
      B. Public Arbitrator Definition
      C. Four Different Pilot Projects
        1. The Short-List
        2. Large Case, Telephone Mediation, and Investment Advisor
            Pilot Projects
III. Arbitration Panels and Special Advocacy Tips
      A. Special Advocacy Tips
      B. Practical Tip About All Public Panel
      C. Use of Experts on Panels
IV.  Discovery  
      A. Scope of Discovery
      B. Current Discovery List
      C. Discussion on Panel Selection
V.   Who Is the Customer?
      A. One Way to Look at It
      B. A Different Perspective
      C. Regulatory Notice 12-55
VI.  Expungement
       A. Proposed Policy
       B. Three Avenues to Seek Expungement
       C. Increase in Expungements
       D. Panel Discussion on Expungement Proceedings
VII. Complex Products
       A. Supervision by Broker-Dealers
       B. Comprehensive Product Review
       C. Who Can Sell the Product?
       D. The Training, Due Diligence, and Attendance to Brokers
       E.  Strange Products Being Sold
       F.  Next Complex Product Subject to Arbitration
VIII. Suitability Rule
       A. Investor Protection
       B. Obligation of Brokerage Firm
       C. Reasonable Basis Suitability
       D. Supplementary Information
       E. It's Not an Insurance Policy
       F.  Shift in Temporal Climate
       G. Broker-Dealer and Investor Relationship
IX.   Senior Citizen Investors 
       A. Claims
       B. Investments Should Change
X.    Additional FINRA Topics
       A. Interplay Between Arbitration and Regulatory Proceedings
       B. More Breaking News
       C. Discovery Requests for FINRA Documents  
  AfterWords®


Content Provided
By




 

The years following the Civil War were tumultuous ones for New York City, offering many opportunities to the dishonest. Unsavory politicians and errant members of the bench and bar were among those who took advantage of those troubled times. In December 1869, a letter was circulated among some of the city’s lawyers addressing those improprieties. It called for the creation of a new bar association to “sustain the profession in its proper position in the community, and thereby enable it ... to promote the interests of the public ....” More than 200 lawyers responded by signing a declaration of organization and in 1870 The Association of the Bar of the City of New York was born. The young organization quickly made its presence felt. Among its first activities was a campaign to defeat corrupt politicians and judges at the polls and to establish standards of conduct for those in the legal profession.

The association continues to work at political, legal and social reform, and maintaining high ethical standards for the legal profession. The association also continues to implement innovative means by which the disadvantaged may be helped. Much of this work is accomplished through the Association's more than 160 committees, each charged to consider a specific area of law or the profession.

The association has grown to more than 23,000 members. To serve them, the association strives to move ahead in many areas. The library is the largest member-funded law library in the country, and provides members with a “gateway” to online services, including free use of LexisNexis and WestLaw, while continuing to provide more traditional library services. The Small Law Firm Center, Career Management Program and other benefits are constantly evolving to serve members’ needs. More than 150 continuing legal education programs are presented annually.

The public good remains one of the association’s highest priorities. The Legal Referral Service, jointly sponsored by the association and the New York County Lawyers’ Association, provides an array of services directly aimed at serving the needs of the public. The City Bar Justice Center identifies the most pressing legal concerns of New York’s neediest and uses novel approaches to address them, often involving community participation.

 





Speakers / Authors:

Photo of Roger M. Deitz

Roger M. Deitz

Roger M. Deitz has successfully resolved over 1,750 mediations of complex and multi-party disputes including, securities, commodities, employment, contract, intellectual property, entertainment, insurance, banking, construction, international, class actions and other business matters throughout the United States and overseas. In addition, he has served as chair or panel member in over 75 arbitrations.

Mr. Deitz served as Chair of the Alternative Dispute Resolution Committee of The Association of the Bar of the City of New York. He is a fellow of the American College of Civil Trial Mediators and Distinguished Neutral of the CPR International Institute for Conflict Prevention and Resolution. He is a member of the CPR Banking and Financial Services, Employment Disputes, Insurance, and National panels of mediators and arbitrators. He is a former Senior Trial Counsel of the U.S. Securities and Exchange Commission and Visiting Associate Professor of Law at the State University of New York, Buffalo, Law School where he taught securities regulation and aviation law.

Mr. Deitz is a mediator and has trained mediators for FINRA, the United States District Court for the Eastern District of New York, the United States Bankruptcy Court for the Southern District of New York, the Supreme Court of the State of New York - Commercial Division, the Department of Justice, and the New York State Society of Public Accountants. He is a mediator for the United States District Court for the Southern District of New York.

Mr. Deitz served for many years as a member of the executive committee of the Board of Directors of Seeds of Peace. Mr. Dietz is the recipient of the FINRA - New York State Office of Court Administration-American Arbitration Association Frontline Champion Mediation Award.

Mr. Deitz serves on the Council of the American Bar Association Section of Dispute Resolution. His Mediation training includes Harvard Law School Program of Instruction for Lawyers, 1989 – 1994; CEDR London (1998, 2000); CPR International Institute for Dispute Prevention and Resolution Vienna (2008), Paris (2007) Brussels (2006); American Bar Association International Dispute Resolution Summit, The Hague (2008).

Photo of Linda D. Fienberg

Linda D. Fienberg

Linda D. Fienberg is President of FINRA’s Dispute Resolution Department. In this capacity, she has responsibility for FINRA’s alternative dispute resolution program (arbitration and mediation). She also is FINRA’s Chief Hearing Officer with responsibility for its disciplinary hearing program.

Prior to joining FINRA, Ms. Fienberg served on its Legal Advisory Board and on its National Arbitration and Mediation Committee. She also was a member of and the reporter for NASD’s Arbitration Policy Task Force, which released its report on Securities Arbitration Reform in January 1996. Before assuming her FINRA positions, Ms. Fienberg was a partner at the Washington, DC, law firm of Covington & Burling, following 11 years at the Securities and Exchange Commission, where she held numerous senior staff positions.

Ms. Fienberg serves on numerous bar and related committees, and is a frequent participant in programs relating to the securities laws and dispute resolution. She also is a Director on the non-profit Boards of the National Partnership for Women and Families and of ASECA, and formerly was a Director on the non-profit Boards of the Abramson Foundation, City Lights School, and the Whitman Walker Clinic.

Ms. Fienberg received her J.D. degree from the Georgetown University Law Center where she was a member of the Georgetown Law Journal, her B.A., with Distinction and Phi Beta Kappa, from Cornell University, and an M.A.T. degree from Wesleyan University,Armstrong Award for number one in her class. 

Photo of Darya Geetter

Darya Geetter

Darya Geetter is an Executive Vice President, Deputy General Counsel, reporting to the General Counsel at LPL Financial. She is responsible for managing all litigation and arbitration matters ii impacting the company and its advisors; representing LPL Financial and its advisors in FINRA arbitration proceedings and regulatory inquiries; and serving on various internal committees.

Ms. Geetter has been practicing for 25 years and was formerly at MF Global Holdings Ltd., where she served as Global Head of Litigation and Deputy General Counsel with responsibility for coordinating all litigation globally, managing all U.S. regulatory relationships, and leading internal investigations. Thereafter, she was a senior counsel to the Chapter 11 Trustee regarding strategy and coordination for litigation and insurance coverage in the Chapter 11 bankruptcy matters. In earlier roles, Ms. Geetter served as Deputy General Counsel and Executive Director at UBS Financial Services; Managing Director/Principal at Bear, Stearns & Co. Inc.; Counsel at Hogan & Hartson LLP; and held several roles at the U.S. Department of Justice, including Senior Trial Attorney in the Civil Rights Division and Assistant U.S. Attorney for the District of Columbia.

Ms. Geetter clerked for a U.S. District Court judge in New Orleans, LA and is admitted to practice in the District of Columbia, New York, and various U.S. district and appellate courts.

Ms. Geetter earned her J.D. from New York University School of Law and her B.A., with Honors, from the University of Chicago.

Photo of Sandra D. Grannum

Sandra D. Grannum
Davidson & Grannum, LLP

Sandra D. Grannum is Managing Partner at Davidson & Grannum, LLP. She was a litigation associate at the New York law firm of Cravath, Swaine & Moore for six years and thereafter was a securities litigator at Tenzer Greenblatt. Ms. Grannum moved in-house to be an Associate General Counsel handling securities litigation at PaineWebber (now UBS Financial Services) in 1997. In November 2001, she became Senior Vice President and Senior Associate General Counsel in its Employment Law Unit and assisted in managing that unit's litigation case load.

Ms. Grannum serves on the Securities Arbitration Committee of the American Bar Association and formerly sat as one of the Industry Members to the Financial Institution Regulatory Association National Arbitration and Mediation Committee. She has tried numerous complex arbitrations involving actual losses of millions of dollars, as well as many employment arbitrations. She has represented a number of broker/dealers in Federal Courts across the country and in adversarial proceeding in Bankruptcy Court in securities and employment related matters. She has also extensive experience representing clearing brokers. She has been an advocate in many complex mediations and has also handled a variety of complex general litigation matters.

Ms. Grannum also chaired the Diversity Committee for UBS Financial Services' Legal department where she developed and implemented its MCCA award winning program. She has written and lectured widely on securities and ethics issues. She also has been involved in developing compliance programs in response to the Sarbanes-Oxley legislation.

Ms. Grannum received her J.D from Harvard Law School and her B.A. from New York University.

Photo of Scott L. Ilgenfritz

Scott L. Ilgenfritz
Johnson, Pope, Bokor, Ruppel & Burns, LLP


Scott C. Ilgenfritz is a partner in the law firm of Johnson, Pope, Bokor, Ruppel & Burns, LLP, and practices in the firm's Tampa, Florida, office. During his 29 years of practicing law, Mr. Ilgenfritz has had a varied commercial and business litigation practice, which has included securities arbitration and litigation, corporate litigation, real estate-related litigation, and contract litigation.

Since 1997, Mr. Ilgenfritz has been Board certified by The Florida Bar as a Business Litigation Lawyer. In 1992, Mr. Ilgenfritz began representing investors in claims against broker/dealers, stockbrokers, and investment advisors. Since the late 1990's, the primary focus of Mr. Ilgenfritz's practice has been representing investors in securities arbitration and litigation matters.

Mr. Ilgenfritz has been a member of the Public Investors Arbitration Bar Association ("PIABA") since 1997. He has served on PIABA's Board of Directors since 2008. He is the current President of PIABA.

Mr. Ilgenfritz received his J.D., with honors, from the University of Florida in 1983 and his B.A, cum laude, from Vanderbilt University in 1979.

 

Photo of Theodore A. Krebsbach

Theodore A. Krebsbach
Murphy & McGonigle, P.C.


Theodore A. Krebsbach is currently the managing partner of Murphy & McGonigle, P.C.’s downtown NYC office. He has over 30 years of experience representing financial institutions throughout the United States, including investment banks, broker-dealers and their officers and employees, in securities arbitrations and ADR, enforcement proceedings before the SEC, FINRA and state securities regulators, and securities litigation and appeals.

Mr. Krebsbach was most recently the founding partner of Krebsbach & Snyder, P.C., a boutique New York City law firm whose attorneys for almost 20 years defended many of the largest broker-dealers and investment banks in a broad range of litigation, arbitration and enforcement proceedings. Mr. Krebsbach was previously the Director of Litigation at Shearson Lehman Brothers from 1987 through 1993, where he litigated many of its significant cases, and managed it global litigation and arbitration caseload and a 25 attorney in-house litigation practice. While at Shearson Lehman Brothers, Mr. Krebsbach successfully argued the two landmark United States Supreme Court securities arbitration cases, Shearson v. McMahon (1987) and Rodriquez de Quijas v. Shearson (1989). These victories established securities arbitration as the primary forum for resolution of investor disputes with broker-dealers and investment firms.

Mr. Krebsbach has twice served as a member of the FINRA National Arbitration and Mediation Committee (2002-2004 and 1991-1993), and is a frequent lecturer on securities arbitration and litigation issues. He has testified before the Congressional Energy and Commerce Committee, Subcommittee on Telecommunications and Finance hearings on securities arbitration reform (Washington, D.C., 3/31/88), the NASD Securities Arbitration Policy Task Force (“Ruder Commission”) hearings on securities arbitration reform (New York City, 2/14/95), and the NYSE Symposium on Arbitration in the Securities Industry (New York City, 11/21/94).

Mr. Krebsbach is admitted to practice in New York and before the U.S. District Court, Eastern and Southern Districts of New York, the U.S. Court of Appeals, Second Circuit, and the U.S. Supreme Court. He has been awarded the Martindale Hubbell AV Preeminent (5.0/5.0) rating by his peers.

Mr. Krebsbach received his J.D. from Fordham University School of Law in 1978, and his B.A. from the University of Notre Dame in 1975.

Photo of Joseph C. Peiffer

Joseph C. Peiffer
Peiffer Rosca Abdullah & Carr

Joseph C. Peiffer is the managing member of Peiffer Rosca Abdullah & Carr. His practices consist of representing individuals and institutions that have been harmed by investment banks and brokerage firms, prosecuting ERISA class actions, and representing victims of labor trafficking and those who have suffered catastrophic injury. He has co-authored a treatise Litigating Business and Commercial Tort Cases, which is published by Thompson West.

Mr. Peiffer has also taught and lectured extensively. He co-created and taught a class entitled Storytelling and Advocacy at Loyola Law School. Also, at Loyola Law School, he has taught a course entitled “The Basics of Arbitration” and he also serves as an adjunct professor teaching Trial Advocacy. He has guest lectured at Tulane Law School in its Securities Regulations class and Syracuse Law School on securities arbitration. He has spoken at many national conventions on a variety of topics including prosecuting large, multi-client claims, broker’s deficient advice to retire and FINRA arbitration.

His financial services fraud practice also includes representing about 25 hospitals and municipalities around the country in cases involving their issuance of auction rate securities. He also filed several ERISA class actions against large financial services firms alleging that they did not prudently invest retirement money and had conflicts of interest. He also is on the plaintiffs’ steering committee in a nationwide antitrust class action involving the illegal tying of cable set-top boxes to the provision of premium cable services.

Mr. Peiffer was one of three Louisiana lawyers ranked by Chambers USA for securities litigation in 2011. He has been quoted by USA Today, Wall Street Journal, the Associated Press, New York Times, New York Daily News, The Los Angeles Times, Business Week, Investment News, and many other publications. He has also appeared on CNN and was named as one of the 50 Leaders in Law by New Orleans City Business Magazine. He twice served as the chairman of the Business Torts Section of the American Association for Justice. He has served on the Board of Directors of PIABA – a nationwide bar association of lawyers that represent individuals and institutions in arbitrations to recover money lost by investment banks and brokerage firms. He was recently elected Executive Vice President of PIABA and will become PIABA President in October, 2014.

Mr. Peiffer received his J.D., cum laude, from Tulane Law School in 1999, and received his undergraduate degree from Bowling Green State University in 1996.

Photo of Michael Schwartzberg

Michael Schwartzberg
Winget, Spadafora & Schwartzberg, LLP

Michael Schwartzberg is a co-managing partner of Winget, Spadafora & Schwartzberg, LLP. Mr. Schwartzberg’s practice focuses primarily on the litigation and arbitration of corporate and commercial disputes, with an emphasis on securities-related claims. Mr. Schwartzberg has substantial experience representing securities broker-dealers, registered representatives and other professionals throughout the United States in a wide array of customer and industry disputes before the Financial Industry Regulatory Authority (“FINRA”), as well as various state and federal courts. In addition, Mr. Schwartzberg has substantial experience handling regulatory investigations and proceedings, as well as advising clients on securities industry agreements.

Mr. Schwartzberg is a member of the Securities Industry and Financial Markets Association (“SIFMA”), Legal and Compliance Division, and the Financial Services Institute (“FSI”). Mr. Schwartzberg is also a frequent lecturer on topics and developments in the securities industry, including the Practicing Law Institute (“PLI”), the annual FSI conference and numerous client-sponsored seminars.

Mr. Schwartzberg is admitted to practice law in New York. He is also admitted to the New York State Bar and the United States District Courts for the Southern and Eastern Districts of New York.

Mr. Schwartzberg received his J.D. from the Benjamin N. Cardozo School of Law in 1989, and his B.S. from Cornell University in 1986.

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Details

Course Code : 773141

Release Date: 2/4/2014 12:00:00 AM
Length: 2hr 44min
Format Type: Video
Recorded Date: 6/4/2013

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