July 18, 2020
In a recent SEC Opinion, we are presented with an individual who says that he didn't file a FINRA Arbitration Statement of Claim seeking expungement because FINRA routinely rejects claims such as his as "ineligible." FINRA says he should have filed his claims, and by failing to do so, he failed to exhaust his administrative remedies. The SEC says it has no jurisdiction because the individual wasn't actually denied any services by FINRA because he never went through the motions to elicit them. The individual says going through the motions would be futile because FINRA would have deemed his claims as ineligible for arbitration. And so we go. Round and round and round.
Guest Blogger Aegis Frumento, Esq. has been musing about the recent Supreme Court Decisions in Trump v. Vance and Trump v. Mazurs USA LLP. Aegis has been musing about the history behind those dramatic opinions. About Aaron Burr. About Alexander Hamilton. About Thomas Jefferson. About the ever-evolving politics of our nation. And Aegis muses about the proper context of all that history and Donald Trump. Ultimately, Aegis thinks that he discerns an American archetype.
I must ask -- indeed, all Wall Street reform advocates must wonder -- whether FINRA's Nominating Committee knew about an American Arbitration Association hearing panel's finding of fabrication of evidence by Bridgewater Associates that occurred during the newly-elected FINRA Board Chair Eileen Murray's term as CEO of Bridgewater. If the Nominating Committee knew of the allegations/findings about fabricated evidence, was that disclosed to all FINRA Board members before they voted to approve Murray's nomination? If the Nominating Committee did not know about the fabricated evidence issue, shouldn't Murray have disclosed such facts during the vetting process given that FINRA is Wall Street's leading self-regulatory-organization?
As a 38-year Wall Street veteran and a founder of the NASD and FINRA Dissident Movement, I have tired of far too many candidates for FINRA elective office who talk the talk but won't walk the walk. Following his election as the 2017 FINRA Small Firm Governor, Stephen Kohn pressed for a number of meaningful reforms. Too often it was Stephen and only Stephen who fought for the small firms. Despite his lonely advocacy, Stephen persisted. If re-elected in 2020, Stephen will remain a passionate voice in raising the legitimate grievances of the small firm community. I urge all FINRA Small Firm Executive Representatives to cast a proxy in support of Stephen Kohn's candidacy for the 2020 FINRA Small Firm Governor.