According to FINRA, Larry Richard Law (CRD #1273118), a broker based in San Juan Capistrano, California, was suspended from the securities industry on August 8, 2024, for failure to comply with an arbitration award or related settlement pursuant to FINRA Rule 9554.

FINRA Rule 9554 gives FINRA the authority to suspend or cancel the registration of individuals who fail to comply with arbitration awards or related settlement agreements. The arbitration process administered by FINRA is a cornerstone of investor protection, providing a streamlined forum for resolving disputes between investors and their financial professionals. The enforceability of arbitration awards is essential to maintaining investor confidence in this system. This action was taken in connection with FINRA Arbitration Case #22-01426.

The underlying arbitration case dates back to 2022, suggesting the award has remained unpaid for an extended period. When brokers fail to satisfy arbitration awards, it compounds the harm suffered by investors who have already endured financial losses. The arbitration process is designed to provide a resolution, and when that resolution is ignored, it defeats the purpose of the entire system. FINRA's enforcement actions under Rule 9554 are intended to ensure that arbitration awards are meaningful and enforceable.

For investors, this case reinforces the importance of FINRA's role in enforcing arbitration outcomes. The suspension means Law is currently prohibited from working at any FINRA member firm. Investors are encouraged to research the backgrounds of their financial professionals using FINRA's BrokerCheck tool, which provides free access to information about regulatory actions, arbitration history, employment records, and customer complaints. Checking BrokerCheck before selecting a broker and periodically thereafter is one of the best ways to protect your financial interests.