Hi, in December of 2005 I met a person with a considerable amount to invest, after several meetings and explaining to him different options , he invested 25% in several bank preferred stocks, 25%REIT. The other 50% was invested in cd's and savings accounts. Shortly after I left the bd for other venture however I still retain my Finra registration. In 2008 the banks who issue the preferred stocks were taken over by the FDIC during the financial collapse. Unfortunately this person loss didn't close his position apparently based on some advice that he claims that I told him which I didn't because I was registered with other bd and I don't give advice anymore to clients. Now on august I receive a statement of claim and most likely I will go to arbitration. Although I feel comfortable with documentation and suitability since he was an accredited investor I still have to go to the arbitration process and already this has cost me a lot in lawyer expense, even taking a loan to pay those fees. However the route taken by my lawyer is the statute of limitation based on when the securities we're purchase. What do you guys think? This process is horrible specially because I was told that he started the process because of the hold recommendation that apparently was made by other RR. Your comments will be greatly appreciated.