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Contributor: George H. Friedman (George@SecArbAlert.com)

(ed: This column follows recent items of interest to securities experts and relating to arbitration practice. These items are drawn from recent editions of the Securities Arbitration Alert (updated where necessary) and appear here with the permission of the Alert’s publisher. This issue’s column is compiled by the SAA’s publisher and Editor-in-Chief, George H. Friedman. Note that all 2021, 2022, and YTD 2023 back issues of the Alert can be downloaded free of charge here.)

UPDATE: OPPENHEIMER FAILS IN ATTEMPT TO VACATE FINRA PANEL’S $36+ MILLION AWARD. Oppenheimer has failed to vacate a massive Award rendered against it by a FINRA Panel. READ MORE

VERY FEW COMMENTS – GENERALLY SUPPORTIVE – ON FINRA’S RULE CHANGE PROPOSAL IMPLEMENTING “RIGGED PANELS” INVESTIGATION REPORT RECOMMENDATIONS. The comment period closed February 2 on FINRA’s rule change proposal to implement recommendations resulting from the outside investigation of allegations that the arbitrator selection process was rigged. We offer an analysis of the very few, generally supportive, comments. READ MORE

FINRA DRS POSTS FULL-YEAR 2022 STATS. CUSTOMER AND INDUSTRY ARBITRATION CLAIMS CLOSED WITH A FLOURISH. FINRA Dispute Resolution Services (“DRS”) has posted case statistics for full-year 2022, with recent trends persisting, resulting in a strong finish in arbitration filings. READ MORE

Contributor: George H. Friedman (George@SecArbAlert.com)

(ed: By reading how courts and arbitrators value, view and utilize testifying experts or decide issues experts encounter on a regular basis, one can better serve the factfinder, more effectively help the client, and more likely avoid a bad experience. For selected court decisions, we draw again from the Securities Arbitration Alert (SAA), and other resources. Note that all 2021, 2022, and TYD 2023 back issues of the Alert can be downloaded free of charge here.)

Chamber of Commerce of the United States v. Bonta, No. 20-15291 (9th Cir. Feb. 15, 2023): A divided Ninth Circuit Panel holds that California’s AB-51 is preempted by the Federal Arbitration Act (“FAA”). READ MORE

Camarda v. Financial Industry Regulatory Authority, Inc., No. 150032/2021 (N.Y. Sup. Ct., NY Cty., Dec. 7, 2022): A broker’s attempt to vacate an unfavorable New York arbitration decision through forum shopping in Colorado and an effectively uncontested vacatur proceeding, got slapped down when the broker tried to persuade a New York State court to force FINRA to allow a “do-over” of the expungement proceeding. READ MORE

Williams Trading LLC v. Manaster, No. CL21-2706 (Richmond City Circuit Ct. Feb. 24, 2023): A broker-dealer lost its motion to vacate an award on the grounds that it waived its objection and that an arbitration panel’s alleged failure to follow FINRA rules does not constitute exceeding their powers. READ MORE

HEARD THROUGH THE REGULATORY GRAPEVINE, COMMENT LETTERS, & SPEECHES

Contributor: SEC-Hollie Mason (Hollie.Mason@kroll.com)

FINRA-Jerry DeNigris (jdenigris@riversidefinancial.com)

(ed: Keeping abreast of rulemaking and other regulatory initiatives can be a full-time job. This compilation is a summary of regulatory actions and comments and is not meant to be an all-inclusive substitute for individual research via the various regulatory sites.)

SEC: The Securities and Exchange Commission (“SEC” or “Commission”) continues to tighten the reins on crypto. Many may remember the recent charges against Kim Kardashian for impermissibly touting the EMAX cryptocurrency. This past week, the Commission charged twelve other celebrities. These charges come at the same time as the SEC charged crypto asset entrepreneur Justin Sun and three of his wholly-owned companies, Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent), for the unregistered offer and sale of TRX and BTT.

FINRA: "It’s Going to be a Big Year for FINRA" A recent article in the National Law Reivew (Tuesday, March 21, 2023) discusses FINRA's intentions to bring more enforcement actions resulting from its Reg BI examinations in 2023. READ MORE

SIFMA: If you missed the Annual SIFMA Conference in March, you can download the "C&L Annual Seminar Debrief, 2023" READ MORE

Contributor: Patti Koetting (pk@pkoetting.com)

Members James A. Kyprios and William Purcell co-authored an article titled "The ABCs of the Bank Crisis". As indicated by the title, the article explores the history leading up to the current banking environment, and specifically at the Silicon Valley Bank situation. The authors review the Government's response and consider the possible effects on the larger economy.  READ MORE to access the article.

SER member William Klun shares a link to an ACFE Member Spotlight he wrote last year, sharing his progression from a senior banker in the energy industry, to fighting fraud with forensic accounting as a Certified Fraud Examiner, and using his skills to help those in need with humanitarian work. READ MORE

SER is sad to report that one of our founding members, Edward B. Horwitz, passed away in late January. Eddie, as he was commonly known to the arbitration community, was truly a pioneer among experts who routinely consulted and testified in securities and commodities arbitrations and trials.  READ MORE

MEET OUR NEWEST MEMBERS! (Click on a name to view the full profile on SER's website, where you can also access their contact info and website. Better yet, reach out and connect to find out more about them.

Scott McAnaney is a Senior Finance Executive with knowledge of all areas of operations, market and operational risk management, and regulatory rules compliance, business and relationship management, product development and improvement. He has worked for several major financial institutions over the years including Global Head of Prime Brokerage Collateral Management at Bank of America/Merrill Lynch.

Eric L. Kronvall has over 37 years of experience in the financial services industry, with a background in regional bank management, wealth management, and risk management. He is the founder of Esoteric Advisors, an expert consulting firm with a mission to make specialized areas of financial services understandable in plain simple terms. Eric is an avid outdoors person and in addition to his expert business, he is in the preliminary stages of developing a permaculture venture, Baby Raye Farms, on the south shore of Kauai.

If you have a potential member to nominate, please contact SER's Membership Chair Paul Carroll (PCarroll@sententiallc.com) or visit our Become a Member page.

Contributor: Patti Koetting (pkoetting@gmail.com) (ed: SER’s Committees are composed of two Board Members, and most have one or more members at large. Our Committees and members are listed under the “About Us” button on our Home Page.)

WEBCAST COMMITEE: Webcast Chair, Elizabeth Falk, reports the Committee is enjoying an active 2023. "We had fun visiting with everyone who attended SER’s inaugural virtual networking event in February, and there was an excellent turnout at our March practice management webcast. We’re now looking forward to the "Spring Catch-Up 2023", our second virtual networking event, on April 10th at 3p.m. ET. We’d love to see everyone there! Our next webcast will be held on May 15th – further details will be announced shortly." The committee appreciates all the members who responded to the member survey to help guide the timing and subject matter of future events.

CONFERENCE COMMITTEE:  Conference Chair, Bob Graham, shares his update on the conference agenda. "With almost 6 months to go, were are finalizing the agenda for this year's Annual Meeting in Boston. Currently, the intent is to highlight and drill down on the resources and value of SER so our members can be in a better position to attract and retain business! We have heard feedback from members on the importance of connections and networking, so this year we will have a slightly modified format with a number of small workshops with hands on practice and skill development between members. Additionally, we have a number of panels with significant backgrounds and experience from the legal, academic and regulatory areas. They will be addressing timely regulatory and economic issues of the day! Still working on a Keynote speaker so I am open to suggestions. For those looking to participate please let me know." Save the Date: September 22-23, 2023. Registration will open late April.

Directors encourage all members to reach out any time with suggestions on how we can improve the membership experience. If you are interested in participating on a committee, please reach out to any Director, Committee Chair or Controller Patricia Koetting (pkoetting@gmail.com).

Contributors: Rotating Practice Management Committee Members

(ed: Helpful tips from seasoned experts relating to operating a successful expert practice.)

Abide By Your Limitations

by SER Member Keith Loveland (kloveland@cap-mgt.com)

Permit me to explore items #2 and #3. I’ll begin with item #2 – within my scope of expertise. I know and understand that the scope of my expertise is necessarily limited by my life-long education, experience on the jobs I’ve held, and previous expert engagements. I recommend remembering that Clint Eastwood quote from Magnum Force, “A Man's Got to Know His Limitations.”

Contributor: Patti Koetting (pkoetting@gmail.com)

Final Note: The Contributors are members of the SER Public Relations Committee. They have designed this newsletter for the membership and worked to gather material for this issue. Members can help by sending Contributors information and suggestions for content in future issues. Members should also visit SER's "Newsroom" section of the Website periodically, as many of the items that appear here will be first posted in the Newsroom.

Copyright 2023 Securities Experts Roundtable - publication appears three times a year and is available as a membership benefit to experts of the Securities Experts Roundtable. Comments - suggestions welcome. Email Newsroom@securitiesexperts.org with comments.

Mission Statement: SER provides continuing professional education and promotes ethics and integrity among its members while remaining dispute neutral as an organization.

Disclaimer: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. The publisher is not engaged in rendering legal, accounting or other professional service or advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.