Investor's Guide to Loss Recovery: Rights, Mediation, Arbitration, and other Strategies

240 Pages·2011·2.71 MB·English

by  Louis L. Straney

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Investor’s
Guide to Loss
Recovery
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Investor’s
Guide to Loss
Recovery
Rights, Mediation, Arbitration,
and Other Strategies
LOUIS L. STRANEY
John Wiley & Sons, Inc.
iii
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Copyright (cid:2)c 2011 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
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LibraryofCongressCataloging-in-PublicationData:
Straney,LouisL.,
Investorsguidetolossrecovery:rights,mediation,arbitration,andotherstrategies/
LouisL.Straney.
p.cm.–(TheWileyfinanceseries)
Includesindex.
ISBN978-0-470-93762-4(hardback);978-1-118-14292-9(ebk.);
978-1-118-14293-6(ebk.);978-1-118-14294-3(ebk.)
1.Individualinvestors–Legalstatus,laws,etc.–UnitedStates. 2.Stockbrokers–Legal
status,laws,etc.–UnitedStates. 3.Securitiesfraud–UnitedStates. 4.Restitution–United
States. 5.Disputeresolution(Law)–UnitedStates. I.Title.
KF1448.S772012
345.73(cid:3)0268–dc23
2011023743
PrintedintheUnitedStatesofAmerica.
10 9 8 7 6 5 4 3 2 1
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To
Hillary, Lee, and Noel
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Contents
Foreword xi
Preface xiii
Acknowledgments xix
Introduction xxiii
CHAPTER1
RoadtoRecovery 1
ASharpStick 1
Dodd-Frank:TheEngineThatCould 2
RejectingAcceptance 4
TheIncalculableThreshold 5
DealingwiththeDemons 6
WhatWentWrong? 7
WhatCanBeDone? 7
CriminalTrials 8
CivilLitigation 14
ClassActionLitigation 17
Mediation 18
Arbitration 20
Notes 21
CHAPTER2
Rock,Paper,Scissors 25
Five,Cinq,Fu¨nf,Cinco 25
Category1ADR:MemberFirmversusMemberFirm 27
Category2ADR:EmployeeversusMemberFirm 29
Category3ADR:MemberFirmversusEmployee 31
Category4ADR:MemberFirmversusPrivateInvestor 33
Category5ADR:InvestorversusMemberFirm 34
Notes 38
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viii CONTENTS
CHAPTER3
PaperworkandNostalgia 41
Equity,Epieikeia,orMyth? 41
ChallengeofSoloFlight 44
ATriptotheClinic 46
PaperversusPanel 47
ThePerfectCounselIsImperfect 48
TheConeof(NearTotal)Silence 50
HistoricalRevisionism 51
StrangeWays 52
Notes 53
CHAPTER4
RevolutionaryActs 55
JewelsAmongtheStones 55
ThreeChordsandtheTruth 57
YourStory,YourCommitment 57
TheEdgeofCourage 60
MoreThanaSuggestion 62
CustomerRequirements,List2 62
ISeeSomethingThatYouDon’tSee 64
RespondentRequirements,List1 65
Negligence/BreachofFiduciaryDuty,Lists9and10 66
Churning,Lists3and4 67
FailuretoSupervise,Lists5and6 69
Misrepresentation/Omissions,Lists7and8 70
UnauthorizedTrading,Lists11and12 71
Unsuitability,Lists13and14 72
ReformthroughReduction? 73
AVenueforIntellectandReason 74
Notes 75
CHAPTER5
ExpecttheUnexpected 77
TrackinganM-80 77
TheBaker’sDozen 78
NewAccountPaperwork 79
CustomerMonthlyStatements 81
CustomerFederalTaxReturnsandSchedules 83
Communications 84
PresentationsandProposals 85
CommissionsandFees 86