How unfair is FINRA arbitration? Court decision shows how corrupt FINRA's dispute resolution process is. Broker attorney manipulated arb selection process, then benefited from arbitrators refusing to hear investor evidence & more. #investorprotection
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Wells Fargo's attorney had a secret agreement with FINRA that certain arbitrators would not even appear on the list of potential arbitrators.
Arbitrators improperly refused to grant a delay for the investors to review documents the broker produced at the last minute. This is a common broker tactic.
The arbitrators refused to hear evidence from the investor that was relevant to rebutting evidence introduced by the broker.
FINRA uses audio recording instead of transcripts. Here there was a transcript showing the broker did a 180 - disavowing testimony he gave before the broker's counsel had an specified medical emergency.
The investor did not have a transcript when the hearings resumed so broker's attorney mischaracterized the broker's earlier testimony. And the arbitrators bought it.
Wells Fargo withheld a key document that was referenced by a number of its witnesses until AFTER the conclusion of the hearing - when the investors could not use it to cross examine witnesses. Judge notes that Wells Fargo "stonewalled" producing the document.
Court concluded the withholding of this document and the perjured testimony amounted to a fraud on the panel.
The Court vacated the FINRA arbitration award because of fraud. That does not mean the investor gets justice. Just that investor gets to go through this process again. Like the movie Groundhog Day. @SECGov @GaryGensler @SECHerrenLee @HesterPeirce please help! #investorprotection
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