California Securities Fraud Lawyer Blog

At the University of San Francisco Law School's Investor Justice Clinic, where I am an adjunct professor and supervising attorney, I am seeing a disproportionately large number of senior citizens who are victims of securities fraud and account mismanagement. The oldest client at the clinic is in her 90's. Elderly clients and those who are seriously ill have unique needs that require swift justice.

The typical securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) takes about 1.25 years to complete. Fortunately, investors who are 65 years or older or seriously ill can request an expedited hearing under a program that was established in June 2004. So far, 701 customers have participated in FINRA's expedited program and, according to FINRA, their cases have been resolved 31% sooner.

For eligible cases, FINRA assures investors that its staff will administer the hearing in an expeditious manner. This program is not specifically covered in the arbitration rules; however, FINRA has amended the Arbitrator's Reference Guide to remind the arbitrators that they should avoid unnecessary postponements or do anything to delay the proceedings. In my experience, the program has been helpful but the expedited procedures should be included in the arbitration code. As it now stands, the burden rests on the investor's attorney to insist on getting the earliest possible hearing dates while allowing enough time to adequately prepare the case.

Small investors and seniors who are unable to afford a securities lawyer and have suffered investment losses due to account mismanagement or securities fraud may qualify for free legal assistance from the Investor Justice Clinic, a law clinic operated by the University of San Francisco School of Law in San Francisco, California. I am proud to be working with the students and clients at the Investor Justice Clinic as a supervising attorney and adjunct professor at the university. The Clinic is a valuable resource for small investors that cannot find a securities lawyer willing to take their case on either an hourly or contingent fee basis.

Securities claims against stockbrokers are typically resolved through arbitration before the Financial Industry Regulatory Authority (FINRA). Law students at the Investor Justice Clinic help investors prepare and submit securities arbitration claims. The students are supervised by law professors, securities lawyers and experts in the field of securities.

To qualify for the Clinic's free legal services, the investor must have suffered damages that are less than $35,000 and have a household income under $50,000. However, these requirements may be waived under special circumstances. The Clinic's clients are typically located in the western half of the United States, but this is not a requirement.

Recently, the Investor Justice Clinic was featured in a MSNBC news segment.