Give Me Back My Money - use of arbitration when investment suggestions from stock brokers prove to be bad

Kiplinger's Personal Finance Magazine, Jan, 2001 by Jeffrey R. Kosnett

In a recent interview, Lands, now retired, says that he talked Andersen out of many other options trades that would have turned out badly. He says he remembers little about the specific day's events that prompted Andersen to arbitrate except that this was the first and only options strategy of this exact sort that Lantis had ever handled among "thousands of trades" in his career.

As for losing, "when you have three arbitrators who are not sophisticated investors or familiar with the brokerage industry, this is what you get." Lantis also said that Andersen's attorney did a good job, and the consulting expert options witness was "able to sway some opinion."

--Reporter: JUSTIN WISER

DONE DIRTY? WHERE TO TURN FIRST

The arbitration process used to be secretive, but as the volume of cases soars, more information is becoming available. The best sources:

NASD Dispute Resolution (212-858-4400; www .nasdadr.com). The Web site has a map of locations and regional phone numbers, plus the code of arbitration procedure. It also has rules and instructions on filing claims. You can find statistics on the caseload and outcomes but no archive of cases.

New York Stock Exchange (212-656-2772; www.nyse .com/arbitration). The NYSE, which runs the second-largest arbitration program, takes claims against only its member firms. Its Web site is better than the NASD's because it carries actual decisions, as well as rules and instructions about how to file.

Public Investors Arbitration Bar Association (888-621-7484; www.piaba.org). Member lawyers are in 44 states and the District of Columbia. They cannot work for the securities industry and must spend most of their time representing investors. The Web site includes a member list, but PIABA does not make direct referrals.

Securities Arbitration Commentator (973-761-5880; www.sacarbitration .com). The site features a newsletter that's read by nearly all investor lawyers because it's the only publication devoted exclusively to arbitration. Some nonlawyers say that reading Commentator helped them to prepare for the hearing.