What Is the Process for Filing a Lawsuit Related to Forgery, Conversion, or Theft? - Transcript

Filing a lawsuit for forgery, conversion, or theft requires a careful understanding of where the misconduct occurred and the applicable dispute resolution process. At Malecki Law, we help victims file claims in arbitration and in court, ensuring their rights are protected and their cases are effectively pursued. We have decades of experience handling highly complex, high-stakes cases and know what it takes to hold those responsible for your losses accountable.

The process for filing a lawsuit depends heavily on the type of institution where the misconduct occurred:

1. Brokerage Firms: If the forgery, conversion, or theft occurred at a brokerage firm, your claim will typically be resolved through FINRA arbitration. FINRA requires most disputes involving brokers or brokerage firms to be resolved in its arbitration forum rather than in traditional court.
2. Investment Advisory Firms: Claims against investment advisors often go to arbitration as well, though the specific arbitration forum depends on the contract you signed with the advisor, this can include JAMS or AAA. Many advisory contracts include clauses requiring disputes to be resolved through a particular arbitration process.
3. Other Entities: If neither a brokerage firm nor an investment advisory firm is involved, you may need to file your lawsuit in a traditional court. However, if the custodian of the property required you to sign a contract with an alternative dispute resolution (ADR) clause, your case may be directed to arbitration or mediation.

The key is understanding the agreement you signed and the governing rules for the institution involved. Malecki Law reviews these agreements carefully to determine the most appropriate forum for your claim.

For claims involving brokerage firms, FINRA arbitration is the most common route. The process typically includes the following steps:

1. Filing a Statement of Claim: The claimant files a detailed statement outlining the allegations, the nature of the misconduct, and the damages sought, known as the “Statement of Claim.” This document is synonymous with a “Complaint” filed in a traditional court.
2. Response by the Defendant: The brokerage firm or broker submits an answer, providing their perspective on the case along with any counter arguments to the Statement of Claim or defenses they wish to provide at the outset.
3. Selection of Arbitrators: Both parties submit confidential lists of the arbitrators they ranked and struck from a pool generated by FINRA. Arbitrators serve as the decision-makers in the case. Most FINRA matters will have a panel consisting of three arbitrators, although, in some cases, there will be a sole arbitrator, such as in a simplified hearing or a matter involving damages under $100,000.
4. Discovery and Preparation: Evidence, such as new account forms, monthly account statements, policies and procedures, and communications, will be exchanged during the discovery phase of the case.
5. Hearing: Both parties present their cases before the arbitrators, including witness testimony and documentary evidence. The parties may also offer opening and closing statements.
6. Award: The arbitrators issue a binding decision, which may include monetary damages.

FINRA arbitration is generally faster and less expensive than court litigation but requires meticulous preparation to ensure success. Malecki Law has extensive experience representing clients in FINRA arbitration, providing a strategic approach to every case.

If your claim does not fall under an arbitration clause, your case may proceed in state or federal court. The process typically involves:

1. Filing a Complaint: The lawsuit begins with a formal complaint outlining the allegations and damages sought.
2. Pretrial Motions and Discovery: Both parties exchange evidence and may file motions to resolve issues before trial.
3. Trial: If the case is not settled, it proceeds to trial, where both parties present their evidence and arguments before a judge or jury.
4. Judgment or Settlement: The court issues a decision, or the parties may agree to a settlement at any stage of the process.

While court cases can take longer than arbitration, they may offer broader discovery rights and the possibility of appealing unfavorable decisions. Malecki Law evaluates each case carefully to determine the best forum for your claim.

Forgery, conversion, and theft claims are subject to statutes of limitations, which set deadlines for filing lawsuits. Delaying action can jeopardize your ability to recover damages. Additionally, evidence such as account statements, contracts, and communications can become harder to obtain over time, due to record keeping requirements or other considerations. Acting promptly ensures that your case is built on a solid foundation of evidence.

At Malecki Law, we guide clients through every step of the process, from evaluating their options to filing claims and presenting their cases. Our attorneys are skilled in navigating both arbitration and court proceedings, working to achieve the best possible outcomes for our clients.

If you’ve been a victim of forgery, conversion, or theft, understanding the right forum for your case is critical to pursuing justice and recovering your losses. Malecki Law has over 20 years of experience representing plaintiffs in securities disputes, arbitration, and litigation. Call us today at 212-943-1233 to speak with a New York securities law attorney or complete our confidential online contact form. With Malecki Law on your side, we can collectively work toward a resolution that protects your rights and financial future.

A lawsuit for a forgery conversion or theft really depends on where that occurred so if it occurred at a brokerage firm you can bring a FINRA arbitration if it occurred at an investment advisory firm you can probably go to arbitration most investment advisory contracts specify an arbitration form and if neither of those two people to two entities are involved you would likely go to court unless the custodian of the property had you sign a contract with some sort of alternative dispute resolution forum.