Sonn Law Group is currently investigating former J.P. Morgan Securities LLC financial advisor Kexin Xu (CRD#: 6966805) following a massive pending customer dispute.

When investors trust their hard-earned wealth to a major financial institution, they expect their financial advisors to act in their best interest. Unfortunately, even at top-tier firms, catastrophic losses can occur when regulatory standards are allegedly ignored.

The Allegations Against Kexin Xu According to Kexin Xu’s official FINRA BrokerCheck profile (FINRA), the former broker is the subject of a monumental pending FINRA arbitration [Case No. 25-02564] filed in November 2025, which seeks a staggering $90.8 million in alleged damages.

The claimant in this case alleges severe violations of FINRA Conduct Rules and the SEC’s Regulation Best Interest (Reg BI). According to the detailed disclosures available in the official FINRA BrokerCheck Report (FINRA), the dispute is linked to unsolicited derivative and index-option trades that resulted in a catastrophic margin deficit on October 10, 2025.

Understanding FINRA Arbitration When a dispute moves beyond a simple customer complaint into a formal claim for damages, it enters the realm of FINRA arbitration. Because most brokerage agreements contain mandatory arbitration clauses, investors generally cannot sue their broker in traditional civil court. Instead, you must go through FINRA’s dispute resolution system.

During this process, your attorney will file a Statement of Claim detailing the allegations (such as Reg BI violations or unsuitable trading) and the damages sought. The case is then heard by a panel of arbitrators who will review documents, hear testimonies, and issue a binding Award.

How to Recover Your Investment Losses Pursuing a FINRA arbitration – especially one involving complex derivatives, margin deficits, or millions of dollars—requires deeply experienced legal counsel. Brokerage firms like J.P. Morgan have robust legal teams defending their interests, and investors need powerful representation to level the playing field.

If you have suffered significant investment losses due to broker misconduct or unauthorized trades by Kexin Xu, the team at Sonn Law Group is here to help you understand your options. We represent investors nationwide in FINRA arbitration claims and have a strong track record of holding negligent brokers and their firms accountable.

What to Expect During a FINRA Arbitration If you have suffered significant investment losses due to broker misconduct, here is a brief overview of what you can expect during the arbitration process:

  1. Filing the Statement of Claim: The process begins when your attorney files a “Statement of Claim.” This document details the allegations (e.g., Reg BI violations, unauthorized trading, unsuitability) and specifies the damages you are seeking.
  2. Striking and Ranking Arbitrators: Unlike a trial with a judge and jury, your case will be heard by a panel of one to three arbitrators (depending on the claim amount). Both sides receive a list of potential arbitrators and can strike out unfavorable candidates while ranking their preferences.
  3. The Discovery Phase: While less exhaustive than traditional court discovery, both parties will exchange documents and information. You will be required to provide tax returns, account statements, and communications, while your attorney will demand internal firm documents, trading records, and compliance logs from the broker.
  4. The Hearing: If the case does not settle beforehand (and many do), you will proceed to a hearing. This functions much like a trial—attorneys present opening statements, examine and cross-examine witnesses, and introduce evidence.
  5. The Award: After the hearing, the arbitration panel deliberates and issues a written decision, known as an Award. If you win, the brokerage firm typically has 30 days to pay the damages.

Navigating a FINRA arbitration – especially one involving complex derivatives, margin deficits, or millions of dollars – requires deeply experienced legal counsel. If you believe your broker has violated SEC or FINRA rules, resulting in substantial losses, the team at Sonn Law Group is here to help you understand your options and fight for your recovery.