According to FINRA, Samuel D. Frankfort was suspended from association with any FINRA member pursuant to FINRA Rule Series 9554 for failure to comply with an arbitration award. The suspension was subsequently lifted.

Frankfort's suspension began on July 8, 2025, and was lifted on October 22, 2025, indicating that he came into compliance with the arbitration award.

This case demonstrates how FINRA's suspension mechanism works to encourage payment of arbitration awards. When brokers are suspended for non-payment, they cannot work in the securities industry until they satisfy their obligations. This creates a strong incentive to pay awards.

The lifting of Frankfort's suspension suggests that the investor who won the arbitration award (Case #24-01291) has now received payment, or that Frankfort has otherwise come into compliance with the award requirements.

For investors, this case illustrates that the arbitration process can ultimately be effective in obtaining compensation for broker misconduct. While collection is not always immediate, FINRA's enforcement mechanisms provide tools to encourage compliance.

If you are considering FINRA arbitration to resolve a dispute with your broker, understand that winning an award may be just the first step. Collection can sometimes be challenging, particularly if the broker has limited assets. However, the suspension mechanism means that brokers who want to continue working in the industry must pay their awards.

Before working with any broker, check their BrokerCheck record for arbitration history. Even if suspensions have been lifted, the underlying arbitration losses provide information about the broker's past conduct.