UPDATE : ARBchek

This Report is a product of Securities Arbitration Commentator, Inc.

New Award Briefs

Report Dated: 2018-08-21

2018-30

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Case v. NEXT Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

18-01023

Products

Annuities

Issue Date

2018-07-31

Situs

Phoenix

State

AZ

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 broker wins the expungement of a customer complaint alleging unsuitability and failure to follow instructions involving an annuity.

Notes

Arbitrator Remarks -- Expungement granted.

People & Entities

Arbitrators

W. Michael Kelley, Esq.

Broker-Dealers Named

NEXT Financial Group Incorporated

Professionals

  • Cs: (RDC) Erica Harris, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (NFGInc) John T. Unger, Houston, TX. ISC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Scalzo v. Credit Suisse

Allegation II

BreachContract

Forum

FINRA

Allegation III

Negligence

Docket No

16-03686

Products

DirectInvesmts

Issue Date

2018-07-31

Situs

San Francisco

State

CA

Clmd Compensatory

480.0

Total Amt Awarded

Equity

Compensatory Awarded

Equity

Punitive Damage Awarded

0.0

Attorney Fees Awarded

0.0

* 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

Customers complaining about investments in oil and gas master limited partnerships and other speculative securities settle their case. However, their former broker, who they did not name as a party, fails in his bid to expunge the claims form his record.

Notes

This is a Stipulated Award. Rescission Requested. Panel composition issue. Arbitrator Remarks -- Arbitrator dissents without explanation.

Arbitrators

George King, Esq. - Chair; Val D. Hornstein, Esq.; David H.S. Commins, Esq. (Dissents)

Broker-Dealers Named

Credit Suisse Securities (USA) LLC

Professionals

  • Cs: Richard A. Nervig, R.A. Nervig PC, San Diego, CA. and Jeffrey Pederson, J. Pederson PC, Greenwood Village, CO.
  • Rs: (CSSUSALLC) Allan N. Taffet, Duval & Stachenfeld, New York, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Weir v. First Allied

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02469

Products

Equity; Margin

Issue Date

2018-07-30

Situs

San Francisco

State

CA

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 broker wins the expungement of an arbitration claim and another customer complaint from his CRD records.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Ralph A. Cotton, CPA

Broker-Dealers Named

First Allied Securities Incorporated; Round Hill Securities Incorporated

Professionals

  • Cs: (ECW) Armin Sarabi, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (FASInc) Jeremy Wooden, Cetera Financial Group, El Segundo, CA. ISC.
  • Rs: (RHSInc) No-show.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Magid v. Wells Fargo

Allegation II

Suitability

Forum

FINRA

Allegation III

Supervision

Docket No

17-00797

Products

VariableAnnuities

Issue Date

2018-08-01

Situs

Hartford

State

CT

Clmd Compensatory

168.0

Total Amt Awarded

Equity

Compensatory Awarded

Equity

Punitive Damage Awarded

0.0

Attorney Fees Awarded

0.0

* 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 alleges that he purchased a Transamerica Axiom variable annuity without a joint income rider, because his broker never discussed the rider with him. After he settles, the broker wins expungement of the claim from his CRD records.

Notes

This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

John J. Mager, Esq. - Chair; Morris James Busca, Esq.; Lisa Joy Cappalli

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: Ari J. Hoffman, Cohen & Wolf, Bridgeport, CT.
  • Rs: (WFALLC & LG) Michael Naccarato, Wells Fargo Law Department, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Sullivan v. Wells Fargo

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-03020

Products

DirectInvesmts

Issue Date

2018-07-30

Situs

Hartford

State

CT

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 broker wins a recommendation to expunge a customer complaint alleging that he guaranteed a 10% return on a FundSource Growth Portfolio invsetment.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Robert B. Titus

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (KFS) Armin Sarabi, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (WFCSLLC) Deirdre Wolff, Wells Fargo Law Department, St. Louis, MO. ISC.

TypeDisp

MemberEmployee

Allegation I

BreachContract

Short Caption

UBS Financial v. Lambert

Allegation II

Forum

FINRA

Allegation III

Docket No

16-02225

Products

NP

Issue Date

2018-07-30

Situs

Boca Raton

State

FL

Clmd Compensatory

79.5

Total Amt Awarded

Equity

Compensatory Awarded

Equity

Punitive Damage Awarded

Attorney Fees Awarded

0.0

* 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 broker-dealer who alleges that the respondent broker defaulted on a prior settlement agreement reaches a new agreement to settle this case.

Notes

This is a Stipulated Award.

Arbitrators

Robert J. Buchner, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (UBSFSInc) Brian S. Hormozi, Schuyler Roche & Crisham, Chicago, IL. OSC.
  • Rs: (EDL) Laurie Hannon Anton, Law Offices of Marc L. Shapiro, Naples, FL.

TypeDisp

CustomerMember

Allegation I

Supervision

Short Caption

Baldwin v. Morgan Stanley

Allegation II

BreachContract

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

17-00640

Products

Equity

Issue Date

2018-07-31

Situs

Boca Raton

State

FL

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

Equity

Punitive Damage Awarded

Attorney Fees Awarded

* 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

Customers complaining about investments in oil, gas, and energy stocks settle their claims against a broker-dealer, and their broker wins expungement of those claims in this Explained Award.

Notes

This is a Stipulated Award. Majority Public Panel. Arbitrator Remarks -- Expungement granted. Explained Award.

Arbitrators

Monroe Mitchel - Chair; Allen Kilik, Esq.; Robert Lawrence Ostrov

Broker-Dealers Named

Morgan Stanley Smith Barney LLC dba Morgan Stanley

Professionals

  • Cs: Scott L. Silver, Silver Law Group, Coral Springs, FL.
  • Rs: (MSSBLLC) Christopher M. Sacco, Morgan Stanley Wealth Management, St. Petersburg, FL. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Pinkerton v. AG Edwards

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-03357

Products

Equity

Issue Date

2018-08-03

Situs

Tampa

State

FL

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 broker wins recommendations to expunge four of six customer complaints from his CRD records in this Consolidated Award.

Notes

This is a Consolidated Award. Arbitrator Remarks -- Expungement granted.

Arbitrators

Richard S. Zaifert, Esq.

Broker-Dealers Named

AG Edwards & Sons Incorporated; Wells Fargo Clearing Services LLC

Professionals

  • Cs: (SGP) Eric Litow, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (AGE&SInc & WFCSLLC) Michael Naccarato, Wells Fargo Law Department, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Harris v. MSI Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-03367

Products

Annuities

Issue Date

2018-08-01

Situs

Tampa

State

FL

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 sole Arbitrator recommends the expungement of two customer complaints from a broker's record, finding that they were based on misinformation from competing brokers who hoped to benefit from the false allegations.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Richard R. Logsdon, Esq.

Broker-Dealers Named

MSI Financial Services Incorporated

Professionals

  • Cs: (ETH) Eric Litow, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (MSIFSInc) Eunice Jordan, MetLife Legal Affairs, New York, NY. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Fernandez Leon v. Cetera Investment

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

18-00422

Products

MutualFunds

Issue Date

2018-08-01

Situs

Miami

State

FL

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 broker wins a recommendation to expunge two customer complaints involving closed-end Puerto Rican municipal bond funds.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Nanci Sondra Landy

Broker-Dealers Named

Cetera Investment Services LLC

Professionals

  • Cs: (FJL) Robert J. Harvey, Harvey & Jenks, West Palm Beach, FL.
  • Rs: (CISLLC) Benjamin Biard, Winget Spadafora & Schwartzberg, Miami, FL. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Mulvey v. Deutsche Bank

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02395

Products

DirectInvesmts

Issue Date

2018-08-03

Situs

Boston

State

MA

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 sole Arbitrator explains his decision to recommend the expungement of two customer complaints involving investments in private equity funds, one of which was contested at the expungement hearing, from a broker's CRD records.

Notes

Arbitrator Remarks -- Expungement granted. Explained Award.

Arbitrators

Paul A. Auerbach

Broker-Dealers Named

Deutsche Bank Securities Incorporated

Professionals

  • Cs: (BPM) Owen Harnett, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (DBSInc) Leonard Weintraub, Paduano & Weintraub LLP, New York, NY. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Cantor Fitzgerald v. Weinstein

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

16-03300

Products

PromissoryNote

Issue Date

2018-07-30

Situs

New York

State

NY

Clmd Compensatory

2000.0

Total Amt Awarded

2101.6

Compensatory Awarded

2000.0

Punitive Damage Awarded

Attorney Fees Awarded

101.6

* 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 broker who defaulted on a promissory note, but contested this arbitration, is liable for $2 million in principal, plus interest and more than $100,000 in attorney fees.

Notes

Big $s. Arbitrator Remarks.

Arbitrators

David I. Goldblatt, Esq. - Chair; Jay Alan Kranis; Henry Nguyen

Broker-Dealers Named

Cantor Fitzgerald & Company

Professionals

  • Cs: (CF&Co) Michael S. Popok, New York, NY. ISC.
  • Rs: (GW) Jonathan Sack, Sack & Sack, New York, NY.

TypeDisp

SmallClms

Allegation I

Churning

Short Caption

Fitzhenry v. Rockwell Global

Allegation II

Suitability

Forum

FINRA

Allegation III

Supervision

Docket No

17-01276

Products

Equity

Issue Date

2018-07-31

Situs

New York

State

NY

Clmd Compensatory

25.1

Total Amt Awarded

0.0

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 brings claims for churning, unsuitability and failure to supervise against a brokerage and five individual brokers. However, he ignores a discovery order and multiple warnings to comply, resulting in the dismissal of his claims without a hearing.

Notes

Pre-Hearing Adjudication -- Full Dismissal. Sanctions imposed.

Arbitrators

Richard Gee

Broker-Dealers Named

Rockwell Global Capital LLC

Professionals

  • Cs: James Meaney, Meaney & Meaney, Huntington, NY.
  • Rs: (RGCLLC, DJG & BJG) Robert M. Bursky, Attorney-at-Law, Melville, NY. OSC.
  • Rs: (CGA) None. Previously represented by: Anthony C. Varbero, Joseph Mure Jr. & Associates, Brooklyn, NY.
  • Rs: (DG & GRS) None.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Cohen v. Lincoln Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02416

Products

DirectInvesmts

Issue Date

2018-08-01

Situs

New York

State

NY

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 brokers win recommendations for the expungement of two customer complaints apiece, despite the in-person objections of the customer asserting two of those complaints, but the sole Arbitrator denies relief to one of the brokers with respect to a fifth, unopposed expungement.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Howard D. Jacob, Esq.

Broker-Dealers Named

Lincoln Financial Advisors Corporation

Professionals

  • Cs: (JSC & RPS) Janene M. Marasciullo, Epstein Becker & Green, New York, NY.
  • Rs: (LFACorp) Michael W. Arnold, Fort Wayne, IN. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Nicholson v. UBS Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02982

Products

CommFutures

Issue Date

2018-07-31

Situs

Cincinnati

State

OH

Clmd Compensatory

0.0

Total Amt Awarded

Equity

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

* 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 broker wins the expungement of only two of five customer complaints for which he seeks that relief in this Consolidated Award.

Notes

This is a Consolidated Award. Arbitrator Remarks -- Expungement granted.

Arbitrators

Julius Z. Frager

Broker-Dealers Named

Barclays Capital Incorporated; UBS Financial Services Incorporated

Professionals

  • Cs: (SPN) Owen Harnett, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (BCInc) John W. Mitchell, New York, NY. ISC.
  • Rs: (UBSFSInc) Patrick S. Christensen, Bressler Amery & Ross, New York, NY. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Coke

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

17-02730

Products

PromissoryNote

Issue Date

2018-08-03

Situs

PP

State

PP

Clmd Compensatory

91.8

Total Amt Awarded

0.0

Compensatory Awarded

0.0

Punitive Damage Awarded

Attorney Fees Awarded

0.0

* 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 sole Arbitrator denies a brokerage's claim for breach of promissory note against one of its former employees because the broker was never served.

Notes

Pre-Hearing Adjudication -- Full Dismissal.

Arbitrators

Mary Elizabeth Skelnik

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (WFCSLLC) Jason Warner, St. Louis, MO. ISC.
  • Rs: (TBC) No-show.

TypeDisp

SmallClms

Allegation I

Suitability

Short Caption

Kornblau v. Westpark Capital

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

18-00182

Products

Equity

Issue Date

2018-08-01

Situs

PP

State

PP

Clmd Compensatory

11.0

Total Amt Awarded

0.0

Compensatory Awarded

0.0

Punitive Damage Awarded

0.0

Attorney Fees Awarded

0.0

* 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 sloe Arbitrator denies this Small Claims involving Tandon Digital Inc. and Monster Digital Inc. stock.

Notes

None.

Arbitrators

James M. Rhodes

Broker-Dealers Named

Westpark Capital Incorporated

Professionals

  • Cs: Anthony Michael Sabino, Sabino & Sabino, Mineola, NY.
  • Rs: (WCInc & HSD) Julie Kamps, Law Offices of J.E. Kamps, Los Angeles, CA. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Morgan Stanley v. Chang

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-00959

Products

PromissoryNotes

Issue Date

2018-07-31

Situs

PP

State

PP

Clmd Compensatory

176.0

Total Amt Awarded

178.6

Compensatory Awarded

176.0

Punitive Damage Awarded

Attorney Fees Awarded

2.6

* 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 broker is liable for breach of three promissory notes that he executed in 2014, 2015 and 2016, respectively in this uncontested case.

Notes

Arbitrator Remarks.

Arbitrators

Herbert Liberman

Broker-Dealers Named

Morgan Stanley Smith Barney FA Notes Holdings LLC; Morgan Stanley Smith Barney LLC

Professionals

  • Cs: (MSSBLLC & MSSBFANHLLC) Timothy N. Will, Albert & Will, Torrance, CA. OSC.
  • Rs: (JJC) No-show.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Morgan Stanley v. Habba

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-01209

Products

PromissoryNote

Issue Date

2018-08-03

Situs

PP

State

PP

Clmd Compensatory

117.9

Total Amt Awarded

118.4

Compensatory Awarded

117.9

Punitive Damage Awarded

Attorney Fees Awarded

0.5

* 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 broker is liable for breach of a promissory note in this uncontested arbitration.

Notes

Arbitrator Remarks.

Arbitrators

Richard Gee

Broker-Dealers Named

Morgan Stanley Smith Barney FA Notes Holdings LLC; Morgan Stanley Smith Barney LLC

Professionals

  • Cs: (MSSBLLC & MSSBFANHLLC) Alan S. Brodherson, Law Office of A.S. Brodherson, New York, NY. OSC.
  • Rs: (FSH) No-show.
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