* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer (on behalf of his IRA) alleging he was placed in illiquid investments such as business development companies and real estate investment trusts settles his case against Respondent broker-dealer. Non-Party broker is granted his request for expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. Rescission Requested. Arbitrator Remarks -- Expungement granted.
People & Entities
Arbitrators
Lynne M. Gomez, Esq.
Broker-Dealers Named
LPL Financial LLC
Professionals
Cs: Kirk C. Smith, Shepherd Smith et al., Houston, TX.
Rs: (LPLFLLC) Matthew T. Bohenek, Boston, MA. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer prevails on his claim against Respondent broker-dealer and is awarded compensatory damages, while a Non-Party broker is granted her request for expungement of this matter from her CRD record. The customer's case involved his placement in Respondent's Troubled Asset Relief Program related to PNC Financial Services Group Inc. warrants.
Notes
Rs Carter Taylor was not assessed any portion of the awarded amount. Rs Charles Schwab & Co. Inc. was assessed. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Sandra L. Malek, Esq. - Chair; Camille Brown; Alina Landver
Broker-Dealers Named
Charles Schwab & Company Incorporated
Professionals
Cs: Liam O'Brien, McCormick & O'Brien, New York, NY.
Rs: (CS&CInc & CT) Gordon C. Young, Barr & Young Attorneys, Danville, CA. OSC and Garrett R. Wynne, Lone Tree, CO. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Two customers are awarded over $780,000 in compensatory damages from one named Respondent broker-dealer and one named broker relating to their investments in GPB Capital, MVP Parking, and APEX Oil.
Notes
Big $s. Rs SCF Securities Inc., Don Michael Edwards, Jonathan Lee French, Darol Kenneth Paulsen, and Phyllis Jean Paulsen were not assessed any portion of the awarded amount. Rs Crown Capital Securities LP and John D. Nguyen were assessed. Rescission Requested. All-Public Panel.
Arbitrators
Barbara M. Zak, Esq. - Chair; Herbert Liberman; Deanna J. Johnson
Broker-Dealers Named
Crown Capital Securities Limited Partnership; SCF Securities Incorporated
Professionals
Cs: Samuel B. Edwards, Shepherd Smith et al., Houston, TX.
Rs: (CCSLP, DME, JLF, JDG, DKP & PJP) Craig R. Bockman, Jones Bell et al., Los Angeles, CA. OSC.
Rs: (SCFSInc) Gary S. Kessler, Kessler Collins PC, Dallas, TX. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Two customers alleging securities fraud and seeking emotional distress and pain and suffering damages lose their case against Respondent broker-dealer.
Notes
Majority Public Panel.
Arbitrators
Kendall C. Reed, Esq. - Chair; Claudia Mai Morehead; David Maurer, Esq.
Broker-Dealers Named
Interactive Brokers LLC
Professionals
Cs: J. Owen Murrin, Murrin Law Firm, Long Beach, CA.
Rs: (IBLLC) Katherine L. Schuerman & Carlos E. Provencio, Washington, DC. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this selling away case, Respondent broker-dealer is held liable to a group of customers for nearly $14 million in damages (inclusive of $6.9 million in punitive damages) after the Panel found it was grossly negligent in its failure to supervise four of its employees by allowing them to operate a Ponzi scheme out of its Atlanta, Georgia office. Said customers are also awarded attorney fees and costs to be determined by a court of competent jurisdiction.
Gayle B. Carlson, Esq. - Chair; Anthony Richard Sanchez, III; Edgar Vazquez-Cruz
Broker-Dealers Named
Oppenheimer & Company Incorporated
Professionals
Cs: John S. Chapman & Jason T. Albin & Philip L. Vujanov, ChapmanAlbin LLC, Cleveland, OH and Craig H. Kuglar, The Law Office of C.H. Kuglar LLC, Atlanta, GA.
Rs: (O&CInc) William E. Mahoney Jr., Stradley Ronon et al., Philadelphia, PA. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An Arbitrator provides factual background and details as to why she has decided to grant Claimant broker's request for expungement of three customer complaints from his CRD record.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Kimberly A. Gilmour, Esq.
Broker-Dealers Named
FSC Securities Corporation; Raymond James Financial Services Incorporated
Professionals
Cs: (JMB) Jennifer P. Farrar, Farrar Law PLLC, Tomball, TX.
Rs: (FSCSCorp) James Noblett, Advisor Group Incorporated, Jersey City, NJ. ISC.
Rs: (RJFSInc) Laura Ruiz Rivera, St. Petersburg, FL. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this Selling Away case, a customer alleging that one of Respondent broker-dealer's agents (who had an ownership interest) misrepresented her investment in Onco Group LLC dba SRS Holdings settles her case against Respondents. Seven named Respondent brokers are awarded expungement of this matter from their respective CRD records.
Notes
This is a Stipulated Award. Selling Away case. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Robert J. Scafuri, Esq. - Chair; Barry Goldman, Esq.; Joseph Tim Keeling
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this Rule 12801 default judgment case, a customer alleging churning and excessive use of margin is awarded compensatory damages from a non-appearing Respondent broker.
Notes
Rule 12801 Default Judgment.
Arbitrators
Thomas R. Bromberg, Esq.
Broker-Dealers Named
None.
Professionals
Cs: Robert Kerrigan, Grossman & Kerrigan, West Islip, NY.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An Arbitrator explains her reasoning for granting Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to Rule 12206 of the Code after finding that the customer closed her account with Respondent way back in 2001 outside the scope of the eligibility period and was unable to sustain her burden of proof with respect to her claims.
Notes
Pre-Hearing Adjudication -- Full Dismissal. Arbitrator Remarks.
Arbitrators
Linda J. Baer, Esq.
Broker-Dealers Named
Citigroup Global Markets Incorporated
Professionals
Cs: Pro se.
Rs: (CGMInc) Adam Kauff, Kauff Laton Miller LLP, New York, NY. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Despite being awarded their Motion for Default Judgment pursuant to Rule 12801 of the Code, two customers lose their case against a non-appearing broker. Said customers previously voluntarily dismissed their claims against Respondent broker-dealer in this matter.
Notes
Rule 12801 Default Judgment.
Arbitrators
John Caracciolo
Broker-Dealers Named
Spartan Capital Securities LLC
Professionals
Cs: Scott L. Silver, Silver Law Group, Coral Springs, FL.
Rs: (SCSLLC) David Schrader, Paykin Krieg & Adams, Purchase, NY. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An All-Public Panel grants Respondents Pre-Hearing Motions to Dismiss pursuant to FINRA Rule 12504(a)(6)(C) (Fidelity Respondents) and FINRA Rule 12206 (Six-year Eligibility Rule) (Vanguard Marketing) and orders the customer to pay $500.00 as a monetary sanction for his non-compliance with their orders regarding the production of discovery.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer trustee alleging he was unsuitably placed in Respondent broker-dealer's Yield Enhancement Options Strategy settles his case, while Non-Party broker is awarded expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. Rescission Requested. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Julie Marie Miller - Chair; Francis Joseph Bourgeois; Edwin Kisiel, III
Broker-Dealers Named
UBS Financial Services Incorporated
Professionals
Cs: Samuel B. Edwards & Ryan Cook, Shepherd Smith et al., Houston, TX.
Rs: (UBSFSInc) Anthony J. Borrelli, Riker Danzig LLP, Morristown, NJ. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A Panel grants one named Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 13206 (Six-year Eligibility Rule for Industry Disputes) and later denies Claimant broker's request for expungement of seven customer complaints from his CRD record.
Notes
Pre-Hearing Adjudication -- Party Dismissal. Arbitrator Remarks -- Explained Award.
Arbitrators
Maryanne M. Esser, Esq. - Chair; Stuart M. Diamond; Irving Sylvester Moses, Jr., CFP
Broker-Dealers Named
NEXT Financial Group Incorporated; Cetera Advisor Networks LLC; AG Edwards & Sons Incorporated nka Wells Fargo Clearing Services LLC
Professionals
Cs: (TLS) Avinoam Rosenfeld, The Rosenfeld Law Office PLLC, Lawrence, NY.
Rs: (NEXTFGInc) John T. Unger, Houston, TX. ISC.
Rs: (CANLLC) David Feldstein, Cetera Financial Group, New York, NY. ISC.
Rs: (AGE&SInc) Deirdre C. Wolff, Wells Fargo Legal Department, St. Louis, MO. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A group of customers alleging fraud with respect to an Investment Manager Service Agreement they entered into with Respondent broker-dealers lose their case.
Notes
All-Public Panel.
Arbitrators
Elwood C. Avery - Chair; Cheung David Chhieng, MD; Katherine L. Sidener
Broker-Dealers Named
Charles Schwab & Company Incorporated; Interactive Brokers LLC
Professionals
Cs: Duncan E. Manville & Michele L. Stephen & Michael E. Chait, Savitt Bruce & Willey, Seattle, WA.
Rs: (CS&CInc) Christopher A. Stecher & Igor V. Stadnik, Keesal Young & Logan, San Francisco, CA. OSC.
Rs: (IBLLC) Christian T. Kemnitz & David Luger, Katten Muchin Rosenman LLP, Chicago, IL. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this small claims arbitration, a customer alleging the cancellation of a fund withdrawal from his account loses his case against Respondent broker-dealer.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code.
Arbitrators
Isidoro Berkman, Esq.
Broker-Dealers Named
TD Ameritrade Incorporated
Professionals
Cs: Pro se.
Rs: (TDAInc) James J. Vihstadt, Omaha, NE. ISC.
Any attempt to use robotics to download Awards posted on this WebSite or to gain access to the Awards on this WebSite in contravention of the Terms of Use Agreement is an unauthorized use, an abuse of the privileges extended to users of this WebSite, and, in our view, a violation of federal law.
