This Week At Malecki Law

Malecki Law Had First Female-Led IPHC – Is Diversity in the FINRA Space on the Rise?

September 16, 2024 | Malecki Law Team

On Wednesday, September 4, 2024, Malecki Law had their first all-around all-female Initial Pre-Hearing Conference (IPHC). An IPHC is a conference that takes place after arbitrators have been selected and provides a first impression for everyone involved. The participants of the IPHC included a panel of three female arbitrators, two female attorneys representing their female client, a female opposing counsel representing the Respondent firm, a female legal extern of the Claimant’s law office, and a female FINRA staff member who coordinated the call. This IPHC makeup of all women was a first for Malecki Law. This begs some questions – how far has the securities arbitration and litigation field come in fostering a more diverse and inclusive environment, and what steps are being taken to continue to facilitate this growth?

Early traces of Diversity, Equity, and Inclusion (DEI) can be tracked down to the mid-1960s when societal movements and legal transformations began to mold the corporate world. The early 2000s saw DEI becoming a business imperative, as it was not only ethical to recognize its importance but also aided in business success. McKinsey & Company, a multinational strategy and management consulting firm, revealed in its report that companies with higher levels of diversity are more likely to have financial returns above their industry medians. FINRA also stresses the importance of DEI to provide a fair and efficient environment for investors, brokerage firms, and registered representatives. FINRA has stated that it is committed to continuing efforts to cultivate diversity, inclusion, and equal opportunity within the industry. Although there exists the need and recognition for diversity within securities arbitration and litigation , has this recognition translated into concrete results?

Currently, FINRA has facilitated efforts to recruit new arbitrators, particularly those from diverse backgrounds to magnify arbitrator diversity. Methods employed by FINRA to achieve its goal include outreach to one hundred minority and women’s organizations, attending conferences where individuals of varied backgrounds attend, and hosting events with diversity-based organizations. According to FINRA’s 2023 Demographic Survey, women make up 45% of joined arbitrators, yet the overall roster of arbitrators consists of 35% women. This portrays a minor increase compared to the overall roster in the 2022 Demographic Survey, which saw 33% of female arbitrators. Further, as of 2023, men made up 53% of arbitrators who have joined and increased to 63% of arbitrators on the overall roster. Moreover, in terms of diversity amongst mediators, according to FINRA’s 2023 Demographic Survey, women made up 33% of the entire mediator roster, only a 4% increase from the previous year. So far, diversity amongst genders in the industry is only inching its way up.

Malecki Law Founder, Jenice L. Malecki, to Speak at PLI’s Securities Arbitration 2024 Conference

September 9, 2024 | Malecki Law Team

On Tuesday, September 12, 2024, Malecki Law’s founder and owner, Jenice L. Malecki, Esq., will be speaking at the Securities Arbitration 2024 event. This conference is organized by the Practicing Law Institute (PLI). Ms. Malecki will be attending it, along with her Associates, Jacqueline Candella and Adam Schreck. The firm will listen to multiple panels consisting of panelists from a wide array of backgrounds, discussing various topics from Recent Developments in FINRA Arbitration and Mediation to Diversity, Equity, & Inclusion (DEI) in FINRA Arbitrations. The panelists and speakers are comprised of leaders and arbitrators in Financial Industry Regulation Authority (FINRA) Dispute Resolution, academics, and experienced attorneys who will walk participants through the most recent developments and challenges that propagate the field.

Ms. Malecki will be speaking on the discussion of Ethics – Avoiding the Ethical Mine Fields in the FINRA Forum, alongside the moderator Sandra Grannum and her colleagues Clint A. Corrie, Barry R. Lax, and Madelon Rosenfield. This panel will begin at 11:30 a.m. and will end at 12:30 p.m. and will dive into the ethical considerations for advocates and neutrals. Ms. Malecki is looking forward to helping attendees identify and deal with a variety of ethical issues including tainted evidence, lying witnesses, distressing discoveries during hearings, and disingenuous insinuations. Malecki Law is no stranger to these challenges acquired from their experience in representing investor arbitrations through FINRA generally, elder financial fraud cases specifically, as well as mediations and whistleblower fraud matters. Malecki Law also has extensive experience with intra-industry disputes including defamation claims, compensation claims, and the request to expunge registered representatives’ Form U5 due to defamatory language made publicly available by financial firms, as well as regulatory defense matters such as FINRA 8210 requests, SEC subpoenas, and investigations

Ms. Malecki enjoys presenting on panels and has spoken at many events over the years. She shares her knowledge gained from over thirty years in the securities industry practice and aims to mentor young lawyers. Some of her notable engagements include her appearances as an expert for Wall Street Journal Live, Fox Business News, and ABC’s Eyewitness News.

NYSBA’s Current State of Crypto Cases Panel

April 16, 2024 | Jacqueline Candella

On Wednesday, April 17, 2024, Malecki Law’s Jenice L. Malecki, Esq., will participate in a virtual panel organized by the New York State Bar Association (NYSBA). This is a joint effort by the NYSBA’s Commercial and Federal Litigation Section’s Securities Arbitration Committee and the Dispute Resolution Sections’ Securities Disputes Committee. Ms. Malecki will speak alongside her colleagues in the industry, Howard Fischer, and Joe Wojciechowski. If you incurred investment losses due to crypto-based products, you need to consult with a Crypto-Based Investment attorney in New York, like the lawyers at Malecki law.

The panel is called “The Current State of Crypto Cases: What Theories Are Being Developed to Support claims Relating to Crypto Losses?” It will begin at 12:00 p.m. EST and end at 1:00 p.m. EST. The panel will focus on liability related to crypto recommendations and broker-dealers. It is free to attend, please click here to register.

Ms. Malecki is looking forward to discussing her first-hand experiences with broker-dealer liability as it relates to crypto-based investment recommendations. Malecki Law has recently settled with a large crypto-based broker-dealer, where Ms. Malecki had the opportunity to learn more about broker-dealer liability in the context of crypto losses. Further, Ms. Malecki enjoys speaking on panels and sharing information with other lawyers in the industry, in an effort to protect investors like yourself. Did your broker recommend that you invest in crypto-based investments? Were those investment recommendations in your best interest? You should reach out to a Crypto-Based Investment law firm, like Malecki Law in New York.

Can My Broker or Investment Advisor Sell Me Cryptocurrency?

November 8, 2023 | Jacqueline Candella

Can my broker or investment advisor sell me cryptocurrency (“crypto”)? Is it an investment? The answer is not so simple; no, they cannot sell it directly, but they may try to sell it to you indirectly through a fund or private placement. Rest assured, it is still just as volatile and not appropriate for most investors. Malecki Law is looking into the sale of crypto-based products, as they have been on the rise. Although investors might be intrigued and ecstatic to get into the new shiny investment on the street, it is still a high-risk bet, no matter what your investment professional may say.

Investing in something new can be enticing, but it does not necessarily mean that it is in your best interest as an investor. If you were sold crypto-based products and sustained substantial losses, you need a Crypto-Based Investment law firm in New York, like Malecki Law, to review your potential claim.

What is crypto? Digital assets are the umbrella which crypto falls under. There is a wider range of assets that land under the digital assets umbrella, such as non-fungible tokens (“NFTs”). The common denominator of the variety of digital assets is that they tend to use blockchain technology. Crypto consists of a broad range of virtual currencies, such as Bitcoin (BTC) or Ethereum (ETH).

Jenice L. Malecki Speaking on Discovery Issues In Securities Arbitration this Thursday at Live CLE Event – Registration Still Open

September 6, 2022 | Malecki Law Team

This Thursday, September 8, 2022, New York City securities lawyer, Jenice L. Malecki, Esq., will be part of a live panel at the PLI’s Securities Arbitration 2022 program, a 1-day Continuing Legal Education (CLE) event on best practices and the latest trends in securities arbitration. The event will be hosted by the Practising Law Institute (PLI), and will be held at PLI New York, 1177 Avenue of the Americas, as well as online as part of a live Webcast.

At the event, Ms. Malecki is scheduled to speak at 2:45 p.m. on Discovery Issues in FINRA arbitration. As part of a panel, Ms. Malecki will discuss FINRA’s discovery rules and procedures, understanding the role of arbitrators in the discovery process, how to execute orders of confidentiality, concepts around producing electronically stored information (ESI) such as proportionality, and how to avoid discovery abuse and related sanctions. Other presenters at the event include other securities attorneys and arbitrators, including Richard Berry, Director of Dispute Resolution at the Financial Industry Regulatory Authority (FINRA). The event’s programming includes an update on FINRA arbitration statistics and trends, what is new at FINRA Dispute Resolution Services, as well as recent technology updates and FINRA’s latest response to Covid-19 and how to comply.

Ms. Malecki is a regular presenter and panelist at securities industry events. She is known for her nearly thirty-five years of securities industry practice and is the founder and principal of Malecki Law, a Manhattan-based securities law firm that provides both national and international representation, and has helped retail investors recover tens of millions of dollars in stock market losses, whether due to brokerage firm negligence, Ponzi schemes, or other financial frauds. Malecki Law also represents securities industry financial professionals in employment disputes with their firms, expunge unjustified customer complaints or defamatory comments from their Form U5 and BrokerCheck CRD, and defends them when faced with regulatory inquiries, including responding to SEC subpoenas and FINRA 8210 requests. Ms. Malecki is a former board member of FINRA and member of its National Arbitration and Mediation Committee (NAMC). She is presently the co-chair of the New York State Bar Association’s Securities Arbitration Committee, as well as an adjunct professor in the securities clinic at the New York Law School.

New York State Bar Association’s Securities Arbitration Committee to Host Lunchtime Panel: “Representing Employees in the Securities Industry”

July 18, 2022 | Malecki Law Team

On July 27, 2022, the Securities Arbitration Committee of the Commercial and Federal Litigation Section of the New York State Bar Association will put on a free, lunch hour (12:15 PM to 1:30 PM) educational panel to discuss issues unique to the legal representation of employees in the securities industry. The seminar will feature panelists Pearl Zuchlewski and Kirsten Patzer, experienced attorneys who will discuss “An Employee’s Perils: Securities Arbitration in a Regulated World.” The panel will share their experiences in employee representation as it relates to industry rules set forth by the Financial Industry Regulatory Authority (FINRA) and the Securities Exchange Commission (SEC), respectively applying to financial professionals registered with broker dealer and investment advisory institutions.

The lunchtime discussion will focus on differences between representing registered individuals in different forums, whether relating to customer or industry disputes in FINRA Arbitration or the American Arbitration Association (AAA). Discussion will also include common issues relating to registration (e.g., U4/U5 disputes) or other employment disputes, regulatory implications for financial professionals called before the SEC or FINRA (i.e., via subpoena or FINRA 8210 requests), and considerations for when there are civil or criminal penalties at stake. Special attention will be devoted to resulting issues likely to impact a financial professional’s future employment, whether inside or outside the securities industry, as well as a discussion on the latest regulatory trends in this space.

The New York State Bar Association (NYSBA) and its Securities Arbitration Committee regularly hosts seminars and educational panels like this one. The committee is co-chaired by Jenice L. Malecki, Esq., founder and proprietor of Malecki Law, a Manhattan-based securities firm that has provided national legal representation to securities industry professionals before regulators (SEC and FINRA) as well as in customer arbitrations, expungement hearings, and U4/U5 disputes for over twenty-five years. Ms. Malecki has additionally served on FINRA’s National Arbitration and Mediation Committee (NAMC), on the board of the Public Investors Advocate Bar Association (PIABA), and is currently an adjunct professor in the Securities Arbitration Clinic at the New York Law School.

Malecki Law is Proud to Announce the Hiring of New Associate Jacqueline Candella

June 20, 2022 | Malecki Law Team

Malecki Law is pleased to announce that Ms. Jacqueline Candella has joined Malecki Law as its new associate securities attorney in New York. Ms. Candella is a recent graduate of the New York Law School yet brings with her an impressive background in the securities and financial industry.

Ms. Candella received her Juris Doctor from Ms. Malecki’s Alma Matter New York Law School (NYLS), having also completed an undergraduate degree in Finance from Pace University. Prior to law school, Ms. Candella served as a client associate for Merrill Lynch – Bank of America’s Wealth Management Department, providing risk assessments, financial analysis, research, and account management support for high-net worth investors.

While in law school, Ms. Candella served as an extern in the Enforcement Division of the Financial Regulatory Authority (FINRA), where she assisted in the investigation of member firms and associated persons for violations of federal securities laws and industry rules. She provided a wide range of support functions for FINRA’s enforcement attorneys, including research and drafting on legal issues. Ms. Candella also participated in interviews with registered representatives and worked on Form U4 and U5 registration issues. In a separate internship, Ms. Candella gained relevant law firm and litigation experience, performing significant work on customer arbitrations and mediations through NYLS’s Field Placement office.

Jenice Malecki Speaking Today at Securities Webinar CLE Event –Registration Still Open

May 13, 2022 | Malecki Law Team

Today at 1:00 PM, NYC FINRA arbitration lawyer Jenice L. Malecki, Esq. will be presenting at a year-in-review webinar hosted by the defense firm Bressler, Amery & Ross, entitled A Recap of 2021 Virtual Proceedings 2nd Annual Hearings in Review. There is still time to attend and register for the event, which is open to securities attorneys and securities industry professionals. Continuing Legal Education (CLE) credits are approved for attorneys licensed in New York and Pennsylvania, with reciprocity for New Jersey, Florida, and California. CLE approval has also been applied for and is pending for credit in North Carolina, Alabama, and Texas.

Other presenters at the event include other securities attorneys, including Richard Berry, Director of Dispute Resolution at the Financial Industry Regulatory Authority (FINRA). The event reviews the increase in virtual arbitration hearings throughout 2020 and 2021 owing to the Covid-19 pandemic, providing outcome statistics and the ongoing trend for virtual proceedings in FINRA customer and industry arbitrations. FINRA has long provided technology and support for virtual arbitration hearings primarily via Zoom and many trial attorneys opted for virtual hearings to avoid Covid-related backlog delays and to ensure their clients received a timely hearing. Practitioners and arbitrators have become so used to using the trial platform that it deserves proper study regarding fair case outcomes if the practice is to continue – for the foreseeable future, virtual proceedings at FINRA appear here to stay. The webinar will review practice tips, techniques, and resources for conducting effective virtual trials, best practices for presenting evidence, developing a plan for technology failures, and how the experience compares to in-person civil trials.

Ms. Malecki is a regular presenter and panelist at securities industry events. As a renowned and skilled litigator in both courts and arbitration, Ms. Malecki has been featured regularly in the media and has published numerous articles to advance diversity and financial elder abuse issues within the securities litigation field. She is known for her nearly thirty-five years of securities industry practice and is the founder and principal of Malecki Law, a FINRA Arbitration Law Firm that has been based in New York City’s financial district for over twenty years. Ms. Malecki is a former board member of FINRA and member of its National Arbitration and Mediation Committee (NAMC). She is presently the co-chair of the New York State Bar Association’s Securities Arbitration Committee, as well as an adjunct professor in the securities clinic at the New York Law School.

Malecki Law is in the News this Week and is in the Thick of Things Next Week Too!

May 6, 2022 | Malecki Law Team

Weighing in on all things financial services, top securities industry lawyer, Jenice L. Malecki, commented on two matters going on at the Financial Industry Regulatory Authority (FINRA).

First, under fire again, it looks like another FINRA arbitration is poised for potential vacatur because of the conduct of an over-reaching, advocatory-styled arbitrator who would not give a customer their day in court. A Florida state court is now entertaining a case where the Alabama Securities Commission is seeking to vacate an award that granted expungement of customer complaints from a UBS broker’s record.

Ms. Malecki discussed with Financial Planning Magazine how this is not only bad for the customer, but also bad for the broker. It taints the proceedings and runs up the bills unnecessarily. Moreover, this broker will also now have a hotly contested court case on his record when all he did was follow FINRA’s rules. The broker did not exclude the client, the arbitrator did. There needs to be a stronger and better monitored process at FINRA for the sake of all interested parties, as well as stronger monitoring of that process by FINRA – not just letting arbitrators act like self-appointed judges without oversight. Even the best judges in the world are subject to oversight, but FINRA arbitrators are not. The scenario presented is not shocking. It was just a matter of time before something like this happened, and FINRA should have seen this coming for years.

Jenice L. Malecki to Moderate PIABA Mid-Year Meeting on Getting Grandma’s Nest Egg Back

April 19, 2022 | Malecki Law Team

The Public Investors Advocate Bar Association (PIABA) will be welcoming back the organization’s former board member, Jenice Malecki, as a moderator for its Mid-Year Meeting and one-day continuing legal education (CLE) program entitled Getting Grandma’s Nest Egg Back. The program kicks off on April 21, 2022, from 12 PM to 6 PM, and will be held via Zoom for registered participants. The CLE program is designed for securities arbitration practitioners, including attorneys, experts, consultants, mediators, educators, but it is also open to the general public.

Ms. Malecki will be moderating the program finale, Strategies and Techniques in Dealing with FINRA Arbitrations Involving Senior Citizens. The panel will feature securities litigator Sandra Grannum from the law firm Faegre Drinker and Professor Christine Lazaro, Director of the Securities Arbitration Clinic at St. John’s University School of Law. The experienced panel of lawyers will delve into strategies and techniques such as client and witness preparation, cross examination of brokers and registered investment advisors (RIAs), tactics commonly employed by defense firms, and what to consider in arbitration when dealing with senior citizen claims specifically.

Financial elder abuse is a topic that is near and dear to Ms. Malecki, who has long been passionate about advocating for retirees who have been taken advantage of or have lost their retirement savings owing to brokerage firms and financial professionals who did not properly manage or supervise their retirement accounts. For nearly 30 years, Ms. Malecki has successfully brought numerous lawsuits on behalf of seniors and retirees who have lost their financial nest eggs, recovering tens of millions of investment dollars on their behalf.