UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2017-02-17

UA 2017-06

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Moore v. LPL Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

16-02206

Products

REITs; VariableAnnuities; MutualFunds

Issue Date

2017-01-30

Situs

Birmingham

State

AL

Clmd Compensatory

Equity

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."

Claim Summary

Cs filed a claim seeking expungement of all references to FINRA Arbitration Case No. 14-02901, which related to distributions from the customer's account using allegedly expired powers of attorney, and FINRA Case No. 15-00127, which related to the customers' investment in variable annuities, real estate investment trusts and mutual funds.

Notes

Arbitrator Remarks -- Expungement granted after a hearing on the merits. Explained Award.

People & Entities

Arbitrators

Neil Harvey Smith

Broker-Dealers Named

LPL Financial LLC

Professionals

  • Cs: (SCM) Joel M. Everest, Bressler Amery & Ross, Birmingham, AL.
  • Rs: (LPLFLLC) Jon D. Kaplon, Boston, MA. ISC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Lashlee v. Source Capital

Allegation II

Negligence

Forum

FINRA

Allegation III

BreachContract

Docket No

16-00147

Products

*

Issue Date

2017-02-01

Situs

Jacksonville

State

FL

Clmd Compensatory

810.0

Total Amt Awarded

1084.6

Compensatory Awarded

810.0

Punitive Damage Awarded

0.0

Attorney Fees Awarded

250.0

* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."

Claim Summary

Bare-Bones Summary.

Notes

Big $s. Sanctions imposed. All-Public Panel. Arbitrator Remarks -- Arbitrator dissents with explanation.

Arbitrators

Gregory D. Hoffmann - Chair; Cindy L. Anderson, Esq. (Dissents); Laverne Lewis Gaskins

Broker-Dealers Named

Source Capital Group Incorporated

Professionals

  • Cs: Kalju Nekvasil, Goodman & Nekvasil, Clearwater, FL.
  • Rs: (SCGInc) Richard Slavin, Cohen & Wolf, Westport, CT. OSC.

TypeDisp

EmployeeCustomer

Allegation I

Expungement(CRD)

Short Caption

Lopez-Lopez v. Huerta

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

16-01979

Products

CorpDebt

Issue Date

2017-02-06

Situs

Miami

State

FL

Clmd Compensatory

Equity

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."

Claim Summary

Cs requested the expungement of a written customer complaint alleging that Cs failed to advise the customer of a buy-back offer concerning Cap Cana 2013 bonds.

Notes

Majority Public Panel. Arbitrator Remarks -- Expungement granted after a hearing on the merits.

Arbitrators

Barry David Thorpe, Esq. (fka Barry K. Thorpe, Esq.) - Chair; Jeanne Charles Wood; Jonathan H. Parker, Esq.

Broker-Dealers Named

UBS International Incorporated

Professionals

  • Cs: Benjamin J. Biard, Winget Spadafora Schwartzberg LLP, Miami, FL.
  • Rs: (UBSIInc) Jonathan C. Schwartz, Bressler Amery & Ross, Fort Lauderdale, FL. OSC.
  • Rs: No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Faro v. Morgan Stanley

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

16-02082

Products

NP

Issue Date

2017-02-01

Situs

Miami

State

FL

Clmd Compensatory

0.0

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."

Claim Summary

Cs requested the expungement of a customer claim alleging that he altered opening account documents to reflect inaccurately that the customer's investment object was "aggressive income" and placed him a managed account in violation of his specific directions.

Notes

Arbitrator Remarks -- Expungement granted after a hearing on the merits.

Arbitrators

Barry David Thorpe, Esq. (fka Barry K. Thorpe, Esq.)

Broker-Dealers Named

Morgan Stanley

Professionals

  • Cs: (NFF) Joelle A. Simms, Bressler Amery & Ross, Fort Lauderdale, FL.
  • Rs: (MSSBLLC) Kimberly J. Gustafson, St. Petersburg, FL. ISC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Morgan Stanley v. Aylesworth

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

16-00780

Products

PromissoryNote

Issue Date

2017-01-31

Situs

Atlanta

State

GA

Clmd Compensatory

955.8

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."

Claim Summary

Cs alleged that Rs breached a promissory note dated 8/6/13 upon the termination of her employment

Notes

This is a Stipulated Award.

Arbitrators

Michael J. Ahlstrom, Esq.

Broker-Dealers Named

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

Professionals

  • Cs: (MSSBLLC & MSSBFANHLLC) Bruce Lewitas, Greenberg Traurig LLP, Chicago, IL. OSC.
  • Rs: (KA) Howard P. Slomka, The Slomka Law Firm, Atlanta, GA.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Kaplan v. Alliance Affiliated

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

15-02083

Products

*

Issue Date

2017-02-01

Situs

Boston

State

MA

Clmd Compensatory

320.0

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."

Claim Summary

Bare-Bones Summary.

Notes

None.

Arbitrators

Sandor I. Rabkin, Esq. - Chair; Byron Alexander Menides; Nickolas F. Monteforte, Esq.

Broker-Dealers Named

Alliance Affiliated Equities Corporation

Professionals

  • Cs: Jonathan E. Neuman, Law Offices of J.E. Neuman, Fresh Meadows, NY.
  • Rs: (AAECorp & DPD) Steven Fuller, Markun Zusman et al., Wellesley, MA. OSC.

TypeDisp

EmployeeEmployee

Allegation I

Defamation

Short Caption

Terrill v. Mahmud

Allegation II

TortiousInterference

Forum

FINRA

Allegation III

Docket No

16-00233

Products

NP

Issue Date

2017-01-31

Situs

Detroit

State

MI

Clmd Compensatory

29.0

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."

Claim Summary

Cs alleged that Rs made disparaging remarks about her to a potential client, causing her to lose business.

Notes

None.

Arbitrators

Martin J. Brosnan, Esq. - Chair; Seth H. Barsky, JD; Dana R. Dawe

Broker-Dealers Named

None.

Professionals

  • Cs: (AMT) John J. Schrotenboer, Wheeler Upham PC, Grand Rapids, MI.
  • Rs: (SHM) Devin W. Bone, Paesano Akashain Apkarian PC, Bloomfield Hills, MI.

TypeDisp

CustomerMember

Allegation I

UnauthTdg

Short Caption

Hoffman v. National Securities

Allegation II

Suitability

Forum

FINRA

Allegation III

Misreprestn

Docket No

16-00276

Products

*

Issue Date

2017-01-30

Situs

Newark

State

NJ

Clmd Compensatory

188.0

Total Amt Awarded

98.1

Compensatory Awarded

97.1

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."

Claim Summary

Bare-Bones Summary.

Notes

Rs National Securities Corporation was not assessed any portion of the awarded amount. Rs Saimir Collaku was assessed. Rule 12801 default judgment.

Arbitrators

Karimu F. Hill-Harvey, Esq.

Broker-Dealers Named

National Securities Corporation

Professionals

  • Cs: Jonathan Kurta, Fitapelli Kurta LLP, New York, NY.
  • Rs: (NSCorp) Jill G. Fieldstein, Nicoll Davis & Spinella, Paramus, NJ. OSC.
  • Rs: (SC) No-show.

TypeDisp

CustomerMember

Allegation I

Forgery

Short Caption

Hennessy v. Morgan Stanley

Allegation II

Misreprestn

Forum

FINRA

Allegation III

BreachContract

Docket No

16-00208

Products

NP

Issue Date

2017-02-02

Situs

New York

State

NY

Clmd Compensatory

150.0

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."

Claim Summary

Cs alleged that Rs made changes to her account as a result of a forgery.

Notes

Majority Public Panel. Arbitrator Remarks -- Expungement granted after a hearing on the merits.

Arbitrators

Howard D. Jacob, Esq. - Chair; Ernesto V. Luzzatto, Esq.; Stephen J. Patti, Esq.

Broker-Dealers Named

Morgan Stanley Smith Barney LLC

Professionals

  • Cs: John Newman, Attorney-at-Law, Huntington, NY.
  • Rs: (MSSBLLC & WRA) Adam Kauff, Kauff Laton Miller LLP, New York, NY. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Aaron v. Merrill Lynch

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Docket No

16-02379

Products

NP

Issue Date

2017-02-03

Situs

Cleveland

State

OH

Clmd Compensatory

0.0

Total Amt Awarded

0.0

Compensatory Awarded

0.0

Punitive Damage Awarded

0.0

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."

Claim Summary

Cs alleged that Rs provided unauthorized and deceptive information relating to his account and failed to provide account invoices.

Notes

Pre-Hearing Adjudication -- Full Dismissal. All-Public Panel. Arbitrator Remarks.

Arbitrators

Kathleen P. Helbig-Hannan, CPA - Chair; John Nicholas Posch; Michael J. Borden

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: Pro se.
  • Rs: (MLPFSInc) David J. Libowsky, Bressler Amery & Ross, Florham Park, NJ. OSC.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Khayan v. Meyers Associates

Allegation II

Forum

FINRA

Allegation III

Docket No

16-00775

Products

NP

Issue Date

2017-02-02

Situs

PP

State

PP

Clmd Compensatory

13.1

Total Amt Awarded

18.1

Compensatory Awarded

13.1

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."

Claim Summary

Cs alleged that Rs committed minimum wage, overtime, spread of hours and wage notice violations.

Notes

Arbitrator Remarks.

Arbitrators

Irwin Kahn, Esq.

Broker-Dealers Named

Meyers Associates Limited Partnership

Professionals

  • Cs: (AMK) Lucas C. Buzzard, Joseph & Kirschenbaum, New York, NY.
  • Rs: (MALP & BM) David A. Schrader, Moritt Hock & Hamroff, New York, NY.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Pearl

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

16-00848

Products

PromissoryNote

Issue Date

2017-01-30

Situs

PP

State

PP

Clmd Compensatory

194.4

Total Amt Awarded

195.3

Compensatory Awarded

194.4

Punitive Damage Awarded

Attorney Fees Awarded

0.9

* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."

Claim Summary

Cs alleged that Rs breached a promissory note dated 2/13/15.

Notes

Arbitrator Remarks.

Arbitrators

Mary Margaret Bush, Esq.

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: (WFALLC) Mitchell J. Albert, Albert & Will, Torrance, CA. OSC.
  • Rs: (MHP) No-show.

TypeDisp

SmallClms

Allegation I

MarginLiqdn

Short Caption

Hashemi v. Fidelity Brokerage

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Docket No

16-01451

Products

ETFs; Options; Margin

Issue Date

2017-01-31

Situs

PP

State

PP

Clmd Compensatory

13.6

Total Amt Awarded

13.4

Compensatory Awarded

13.4

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."

Claim Summary

Cs alleged that Rs sold shares of iShares NASDAQ Biotechnology ETF, an IBB call option and put options of Netflix Inc. in Cs' account to cover alleged margin calls.

Notes

None.

Arbitrators

William M. Ziering, Esq.

Broker-Dealers Named

Fidelity Brokerage Services LLC

Professionals

  • Cs: Pro se.
  • Rs: (FBSLLC) Meredith A. Faro, FMR LLC, Legal Department, Boston, MA. ISC.

TypeDisp

SmallClms

Allegation I

Misappropriatn

Short Caption

Souran v. E*Trade Securities

Allegation II

FailToObey

Forum

FINRA

Allegation III

Operations

Docket No

16-01803

Products

NP

Issue Date

2017-01-30

Situs

PP

State

PP

Clmd Compensatory

9.0

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."

Claim Summary

Cs alleged that Rs closed all of his accounts in 2015 without authorization and, when the accounts were later reinstated, they were all in deficit and Rs continued to charge interest on them; that there are no records of his monthly account statements on Rs' website; and that Rs wiped out all but four of Cs' Account Alerts.

Notes

Rescission Requested.

Arbitrators

Jeffrey W. Finke, Esq.

Broker-Dealers Named

E*Trade Securities LLC

Professionals

  • Cs: Pro se.
  • Rs: (E*TSLLC) Meredith F. Hoffman, Roseville, CA. ISC.

TypeDisp

SmallClms

Allegation I

Suitability

Short Caption

Greene v. Merrill Lynch

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

16-02003

Products

DirectInvesmts

Issue Date

2017-02-01

Situs

PP

State

PP

Clmd Compensatory

28.3

Total Amt Awarded

27.3

Compensatory Awarded

20.5

Punitive Damage Awarded

0.0

Attorney Fees Awarded

Equity

* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."

Claim Summary

The causes of action related to investments in BreitBurn Energy Partners LP purchased in 2012 and 2014.

Notes

Damage Anomaly. Arbitrator Remarks.

Arbitrators

Steven R. Reininger, Esq.

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: Mark A. Tepper, M.A. Tepper PA, Fort Lauderdale, FL.
  • Rs: (MLPFSInc) Alex J. Sabo, Bressler Amery & Ross, Miami, FL. OSC.

TypeDisp

SmallClms

Allegation I

Operations

Short Caption

Wray v. E*Trade Clearing

Allegation II

FailToObey

Forum

FINRA

Allegation III

Negligence

Docket No

16-02575

Products

NP

Issue Date

2017-01-30

Situs

PP

State

PP

Clmd Compensatory

1.5

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."

Claim Summary

Cs alleges that Rs caused him to incur an IRS penalty stemming from a 2014 distribution from his IRA account, by failing to send him a 1099-R form showing the distribution, and that Rs did not handle a subsequent transfer request with the required expediency.

Notes

Clrg BD dispute.

Arbitrators

Robert L. Lestina, Jr.

Broker-Dealers Named

E*Trade Clearing LLC

Professionals

  • Cs: Pro se.
  • Rs: (E*TCLLC) Meredith F. Hoffman, E*Trade Securities LLC, Roseville, CA. ISC.

TypeDisp

SmallClms

Allegation I

FailToObey

Short Caption

Tatyrek v. Decker

Allegation II

Suitability

Forum

FINRA

Allegation III

Docket No

16-02627

Products

NP

Issue Date

2017-01-30

Situs

PP

State

PP

Clmd Compensatory

6.4

Total Amt Awarded

0.0

Compensatory Awarded

0.0

Punitive Damage Awarded

0.0

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."

Claim Summary

Cs alleged that Rs did not liquidate and transfer funds in an account Cs inherited to another account within a reasonable amount of time and that the account portfolio was unsuitable.

Notes

None.

Arbitrators

Katherine H. O'Neil, Esq.

Broker-Dealers Named

JP Morgan Securities LLC

Professionals

  • Cs: Pro se.
  • Rs: (EDD & JPMSLLC) Michael N. Ungar & Christopher Seps, Ulmer & Berne, Cleveland, OH. and Chicago, IL. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Citigroup Global v. Phillips

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

16-02906

Products

PromissoryNote

Issue Date

2017-01-31

Situs

PP

State

PP

Clmd Compensatory

120.1

Total Amt Awarded

120.1

Compensatory Awarded

120.1

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."

Claim Summary

Cs alleged that Rs breached two promissory notes dated 8/2/13 and 8/20/14 after he left Cs' employ on 7/1/16.

Notes

None.

Arbitrators

Ray J. Grzebielski, Esq.

Broker-Dealers Named

Citigroup Global Markets Incorporated

Professionals

  • Cs: (CGMInc) Christopher Manuel Rodriguez, Alonso Andalkar & Facher, New York, NY. OSC.
  • Rs: (PJP) No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Butowsky v. Morgan Stanley

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

15-03015

Products

NP

Issue Date

2017-01-27

Situs

Dallas

State

TX

Clmd Compensatory

Equity

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."

Claim Summary

Cs requested the expungement of six customer complaints containing wrong and unsupported data from his CRD records.

Notes

Arbitrator Remarks -- Expungement granted after a hearing on the merits.

Arbitrators

Jeff Howard Abrams - Chair; C. Sumpter Logan; Larry N. Quinn, CPA

Broker-Dealers Named

Morgan Stanley & Company LLC

Professionals

  • Cs: (EWB) Shauna Izadi, Friedman & Feiger, Dallas, TX.
  • Rs: (MS&CLLC) Lesley V. Tepper, Morgan Stanley Smith Barney LLC, San Francisco, CA. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Magruder v. Wells Fargo

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

16-02701

Products

NP

Issue Date

2017-02-01

Situs

Dallas

State

TX

Clmd Compensatory

Equity

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."

Claim Summary

Cs alleged that in 2015, one of his customers made a false complaint stating that Cs misrepresented and failed to disclose advisory fees relating to the customer's account.

Notes

Arbitrator Remarks -- Expungement granted after a hearing on the merits.

Arbitrators

Eric Ross Cromartie - Chair; Dineo Coleman Gary; Douglas Ken Rudley

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: (MEM) David E. Robbins, Kaufman Gildin & Robbins, New York, NY.
  • Rs: (WFALLC) Nuviah Shirazi, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Freitag v. Ameriprise Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

16-02431

Products

GovtSecs

Issue Date

2017-01-30

Situs

Milwaukee

State

WI

Clmd Compensatory

0.0

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."

Claim Summary

Cs alleged that he was improperly named in a 2005 customer complaint alleging misrepresentation and unsuitability in connection with the purchase of a step-up preferred stock, Tennessee Valley Authority.

Notes

Arbitrator Remarks -- Expungement granted after a hearing on the merits. Explained Award.

Arbitrators

Jonathan B. Gilbert, Esq.

Broker-Dealers Named

Ameriprise Financial Services Incorporated on behalf of Ameriprise Advisor Services Incorporated fka H&R Block Financial Services Incorporated

Professionals

  • Cs: (TJF) Dochtor Kennedy, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (AFSInc) Trina Iijima, Troy, MI. ISC.
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