Epilogue to a Nightmare
I begin and end Wall Street Versus America by recounting the story of Rand Groves, an entrepreneur from New Jersey whose portfolio was destroyed in the technology bust, and who was ripped to shreds when he brought a claim against his broker before an NASD arbitration panel.
Groves's plight is typical of the stacked deck investors when they have a beef against a broker. Even though the broker in the Groves case apparently fabricated evidence, which would have serious consequences in a court case, the NASD arbitrators couldn't have cared less. Groves lost his case, and a subsequent appeal went down the tubes despite the loss of a crucial tape of the proceedings.
Well, I've learned that the case was recently tossed out again by a New Jersey appellate court. That was hardly surprising, because it is almost impossible to to overturn a securities industry arbitration on appeal.
I understand that state regulators are looking at the entire securities arbitration system. I hope so, because the Securities and Exchange Commission couldn't care less.
© 2006 Gary Weiss. All rights reserved.
Wall Street Versus America was published by Penguin USA on April 6.
Click here for its Amazon.com listing and here for more information on the book, from my web site.