Respondent in FINRA Enforcement Arbitration Seeks Injunction to Stop Remote Hearing

From the Desk of Jim Eccleston at Eccleston Law LLC:

Alpine Securities Corp, a respondent in a FINRA Enforcement arbitration, has filed a lawsuit in federal court in Utah seeking to enjoin FINRA from holding an enforcement arbitration hearing virtually, Law360 reported.

In its motion for a preliminary injunction, Alpine alleged that some hearings in this matter were held in-person, in February 2020. According to Alpine, FINRA Enforcement was able to present its entire case-in-chief at the in-person hearing, while Alpine was only able to present one witness before the hearing was stopped.

According to Alpine, the broker-dealer was assured that the hearings would resume in person, with a continued hearing scheduled for November 30. However, the broker-dealer alleged that the November 30 hearing was later converted to a remote hearing. In its motion for a preliminary injunction, Alpine argued that it would be unfair for FINRA Enforcement to present its entire case-in-chief at an in-person hearing and then require Alpine to present its case virtually.

In FINRA’s opposition to Alpine’s motion for a preliminary injunction, FINRA said that the November 30 hearing had been cancelled and the parties to the enforcement arbitration were in the process of submitting briefs on the issue of whether future hearings in the matter would be held in-person or virtually.

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Tags: eccleston, eccleston law, FINRA, Injunction, Alpine Securities Corp