]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives NASD & PIABA Tangle
Accusations of Panel Selection Rigging
NASD & PIABA TANGLE OVER NLSS: Posted on the NASD Dispute Resolution and NASD Regulation WebSites is a Press Release, dated July 20, entitled NASD Dispute Resolution Response to False PIABA Charges.
The charges to which the Release and an accompanying letter from Richard Ketchum, NASDs President, refer are contained in a Press Release of the same date issued by the Public Investors Arbitration Bar Association, entitled NASD Caught Rigging Securities Arbitration Panels.
In his letter, which is addressed to the individual members of PIABAs Board, Mr. Ketchum issues a demand that the PIABA Board retract its erroneous and groundless press release . That PIABA Release, which attaches three communications between NASD-DR and PIABA that detail the focal issues in the controversy, attacks NASDs Neutral List Selection System in alliterative and hyperbolic language as flawed by a methodical manipulation that favors veteran arbitrators (called vociferous volunteers in a 6/30 PIABA letter).
The observation of a bias was deemed a possibility requiring investigation, the Ketchum letter concedes, but premature publication of the charges was simply irresponsible. If PIABA had just waited until an extension date agreed to with PIABA President Mark Maddox, NASD complains, it would have had NASDs final determination on this perceived bias in the system; i.e., that NLSS does not choose arbitrators based on seniority when specific expertise is requested.
[SEC Law.com Ed – Discussion regarding the “rigging” charges are on-going in the Securities Law Forum – http://www.seclaw.com/ubb/Forum1/HTML/000015.html]
Copyright 2000-2002 Securities Arbitration Commentator, Inc. P.O. Box 112, Maplewood, NJ 07040; t: 973-761-5880 f: 973-761-1504. Materials denoted with a SAC Reference No. (e.g. SAC Ref. No. 99-01-001) are on hand at SAC and may be obtained by calling the Securities Arbitration Commentator, or by email to email@example.com. The Securities Arbitration Commentator is the leading publication for securities arbitration news and information, and maintains the most complete database of arbitration awards availalble anywhere. For more information regarding their services, visit their website at www.sacarbitration.com
Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.
Return to The Securities Law Home Page
Visit Beam & Astarita, LLC, securities arbitration, regulation and litigation attorneys