Arbitration, Non-Parties Compelling Arbitration, FINRA Arbitration, “Customer,” 2, 4
Under FINRA Rule 12200, a “customer” of a FINRA member may commence FINRA arbitration against the member. A “customer” under FINRA Rule 12200 includes any non-broker and non-dealer who purchases commodities or services from a FINRA member or its associated person. Oppenheimer’s “associated person” Woods ran a Ponzi scheme. Mitchell invested in the Ponzi scheme entities that Woods set up but invested in those entities through Mooney who was not an associated person of Oppenheimer. Hence, the district court correctly held that Mitchell could not commence FINRA arbitration against Oppenheimer and correctly issued a permanent injunction against Mitchell’s commencing such arbitration.