* 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 asserts claims against his former employer for wrongful termination, whistleblower discrimination, conversion of personal property, loss of benefits, Form U-5 reformation and infliction of emotional distress, among other things. The Panel agrees to award compensatory damages, but one dissents from the grant of U-5 reformation.
* 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 allege elder abuse in the purchase and sale of stock in trust accounts. Although they voluntarily withdraw their claims without settlement, the Panel, with one dissent (from a public, turned industry, Arbitrator), refuses to expunge those claims from a non-party broker's CRD records.
Notes
Panel composition issue. Arbitrator Remarks -- Arbitrator dissents with explanation.
Arbitrators
Jack A. Helms - Chair; Martin Salzman- Fla.; James E. Moon
Broker-Dealers Named
Wells Fargo Advisors LLC
Professionals
Cs: Vince Walls, Personal Representative, Naples, FL.
Rs: (WFALLC) Demian J. Betz, Wells Fargo Law Department, Charlotte, NC. 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 sole Arbitrator recommends expunging a total of 12 customer complaints involving auction rate securities from the CRD records of two brokers, seven from the records of one broker and five from the records of the other.
* 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 Explained Award, a broker wins a recommendation to expunge from his CRD records two customer complaints. One involves variable annuities and the other a FINRA arbitration involving First Trust Strategic High Income Fund II, a close-end fund containing collateralized mortgage obligations.
* 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 and broker settle their respective claims against each other for breach of promissory note and unpaid compensation. The broker then succeeds in his unopposed request for reformation of his Form U-5.
Notes
This is a Stipulated Award. Panel composition issue. Arbitrator Remarks -- U-5 Reformation granted.
Arbitrators
Howard L. Sobel
Broker-Dealers Named
Wells Fargo Advisors Financial Network LLC
Professionals
Cs: (WFAFNLLC) Thomas B. Lewis, Stevens & Lee, Lawrenceville, NJ. OSC.
Rs: (DBR) Alan S. Brodherson, Law Office of A.S. Brodherson, New York, 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
A broker asserting a claim against his former employer for unpaid commissions, unlawful commission deduction and tortious interference recovers more than $140,000 in compensatory damages, interest, attorney fees and costs, though one of the three Arbitrator dissents.
Notes
Arbitrator Remarks -- Arbitrator dissents without explanation.
Arbitrators
Eugene G.P. Byrne, Esq. - Chair; Regina Waynes Joseph; Susan E. Harkins, Esq.
Broker-Dealers Named
National Securities Corporation
Professionals
Cs: (ACM) John E. Lawlor, J.E. Lawlor Attorney-at-Law, Mineola, NY.
Rs: (NSCorp, DJB & JJW) Fred Knopf, National Holdings Corporation, New York, NY. 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 sole Arbitrator denies two customers' claims for failure to follow instructions, breach of contract and breach of fiduciary duty, but denies two non-party brokers' requests to expunge those claims from their CRD records.
Notes
None.
Arbitrators
David S. Billet, Esq.
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: Howard Meyers, New York Law School Legal Services Incorporated, New York, NY.
Rs: (MSSBLLC) Abigail Elrod, Legal & Compliance, New York, NY. 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 family of municipal bond investors complain about an alleged recommendation to purchase highly speculative and risky unrated bonds related to Saint Catherine College Inc. all of which are now in default. After they settle their claim, however, the Panel expunges those claims from the CRD records of three respondent brokers.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted. Explained Award.
Arbitrators
Mark Alexander Sipper - Chair; Donna Lynne Pavlick; Janet M. Thompson
Broker-Dealers Named
Ross Sinclaire & Associates LLC
Professionals
Cs: Steven M. McCauley, Charles C. Mihalek PSC, Lexington, KY.
Rs: (RS&ALLC, LNT, MS & FTO) Trae D. Meyr, Thompson Hine 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
A customer settles her claim alleging that her broker purchased securities that were too high-risk for her age and income. However, the sole Arbitrator refuses to expunge the claim from the broker's record, because he finds that the broker has not proven that the securities were suitable.
Notes
This is a Stipulated Award. Arbitrator Remarks.
Arbitrators
Bert P. Krages, II
Broker-Dealers Named
Wells Fargo Advisors Financial Network LLC
Professionals
Cs: Pro se.
Rs: (WFAFNLLC) Thomas F. Kopshever, Wells Fargo Law Department, San Francisco, CA. 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 sole Arbitrator denies a broker's motion to dismiss his former employer's breach of contract claim against him, but subsequently denies the claim on the papers.
Notes
None.
Arbitrators
David I. Goldblatt, Esq.
Broker-Dealers Named
RM Stark & Company Incorporated
Professionals
Cs: (RMS&CInc) Ellen Ruth Paleias Adler, Delray Beach, 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
A broker is liable to his former employer for failure to repay a loan pursuant to 2011 promissory note and a 2017 note modification entered into between Cs and Rs dated 10/16/17.
* 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 expungement relief with respect to four customer complaints, including two by the wife and parents of the broker's former partner, who had threatened to ruin him after their business relationship deteriorated.
Rs: (RJFSInc) Robert M. Rudnicki, St. Petersburg, FL. ISC.
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