* 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 (Individually and as Owner of his IRA) alleging that Respondents did not act in his best interest when they recommend he invest in GWG L Bonds is awarded $280,000 in compensatory damages, while Respondent broker-dealer loses its Counterclaim alleging promissory estoppel/breach of contract.
Notes
Rescission Requested. Rs Avi Bialo, Unbo Chung, Joshua Rogers, and Corrie Scoby were not assessed any portion of the awarded amount. Rs Arete Wealth Management LLC was assessed. Regulation Best Interest. All-Public Panel.
People & Entities
Arbitrators
Adam Michael Porter - Chair; Jack R. Goetz; Noel Harvey Applebaum
Broker-Dealers Named
Arete Wealth Management LLC
Professionals
Cs: Jonathan W. Evans & Michael S. Edmiston, J.W. Evans & Associates, Studio City, CA.
Rs: (AWMLLC, AB, UC, JR & CS) Gregg J. Breitbart & Zachary Hayes-Macaluso, Kaufman Dolowich & Voluck LLP, Fort Lauderdale, FL. 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 lose their case against the remaining Respondent broker-dealer in this arbitration pursuant to FINRA Rule 12504(a)(6)(B) (not involved with the security, conduct, or account in dispute) as one named customer did not have an account with this Respondent and pursuant to FINRA Rules 12504(d) (failure to Comply with Code or Panel Order) and FINRA Rule 12212(c) (Discovery Sanctions) for the remaining customer's repeated failure to comply with discovery requests and the Arbitrator's prior Orders regarding the production of discovery in this matter.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code under the Special Proceeding option. Pre-Hearing Adjudication -- Party Dismissal. Directed Verdict -- Full Dismissal. Sanctions imposed. Arbitrator Remarks -- Explained Award.
* 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 Big $ award, a non-appearing broker is held liable to Claimant broker-dealers for over $3.7 million in damages relating to a previously executed settlement agreement between the parties.
Notes
Big $s. Damage Anomaly. Arbitrator Remarks.
Arbitrators
Benjamin F. Breslauer - Chair; James Henri Pike; Linda M. Iannone
Broker-Dealers Named
Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney Financing LLC
Professionals
Cs: (MSSBLLC & MSSBFLLC) Timothy N. Will, Albert & Will, Torrance, CA. 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 that Respondent broker was negligent when he recommended he invest in Behavioral Recognition Systems Inc. loses his case.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Cs did not request a hearing.
Arbitrators
Michael John Florio
Broker-Dealers Named
None.
Professionals
Cs: Pro se.
Rs: (DEW) Christina Z. Vourakis, Winget Spadafora & Schwartzberg LLP, Los Angeles, CA.
* 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 that her investment in the Jackson National annuity was misrepresented to her loses her case against Respondents. Respondent broker's request for expungement of this matter will be decided in a separate award.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code under the Special Proceeding option. The Arbitrator will issue a decision on expungement of customer dispute information in a separate, subsequent Award.
Arbitrators
Susan L. Walker, Esq.
Broker-Dealers Named
Raymond James Financial Services Incorporated; Steward Partners Investment Solutions LLC
Professionals
Cs: Pro se.
Rs: (RJFSInc) Michael S. Lamont, The Raymond James Financial Center, St. Petersburg, FL. ISC.
Rs: (SPISLLC & DJB) Michael T. Roche, Roche Law Group LLC, 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
Claimant broker-dealer and registered representative entered into a Confidential Settlement Agreement relating to the execution of a promissory note agreement, the balance of which became due and owing after said registered representative's employment with Claimant ended.
Notes
This is a Stipulated Award.
Arbitrators
Douglas J. Nesbit
Broker-Dealers Named
OSAIC Wealth Incorporated
Professionals
Cs: (OSAICWInc) Jennifer R. Cox, Osaic Incorporated, Scottsdale, AZ. ISC.
Rs: (CJ) David Chase, Law Firm of D. Chase, Fort Lauderdale, FL.
* 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
After granting in part Respondent broker-dealer's Motion for Directed Verdict with respect to the claims asserted in this matter, a Panel still grants Claimant registered representative's request for reformation of his Form U5 record.
Notes
Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Patrick R. Sughroue, Esq. - Chair; Leah Murray Albert, Esq. (fka Leah A. Murray, Esq. fka Leah M. Balk-Teitelbaum, Esq. fka Leah M. Murray, Esq.); James Aaron Morrow
Broker-Dealers Named
Equitable Advisors LLC
Professionals
Cs: (NJS) Michael Bessette, HLBS Law, Broomfield, CO.
* 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 alleging that Respondent broker-dealer's Cancellation Rule violates ERISA's vesting and anti-forfeiture requirements and seeking deferred incentive compensation under the Morgan Stanley Compensation Incentive Plan lose their case.
Notes
None.
Arbitrators
Tracy L. Allen, Esq. - Chair; O'Neal Oliver Wright; Phillip Rodger Patterson, Jr.
Broker-Dealers Named
Morgan Stanley; Morgan Stanley Smith Barney LLC
Professionals
Cs: (BJS & MD) John B. Pinney & Augustus B. Flottman, Bricker Graydon LLP, Cincinnati, OH.
Rs: (MSSBLLC) Tracy L. Gerber & Travis R. Chapin & Beth A. Black & Rose Mahdavieh, Greenberg Traurig PA, West Palm Beach, FL. 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 Stipulated Award, Claimant broker-dealer and Respondent registered representative entered into a new Settlement Agreement relating to a prior settlement with respect to the signing of four Promissory Note Agreements Respondent executed as part of his employment with Claimant. As part of the parties' Settlement Agreement, the Panel outlined factual stipulations that will become binding in the event that Respondent defaults or fails to pay the amount agreed upon under the terms of the settlement.
Notes
This is a Stipulated Award. Arbitrator Remarks -- Explained Award.
Arbitrators
Arlene Simon Backman - Chair; Bernadette F. Rasmussen; Leslie J. Filson
Broker-Dealers Named
Wells Fargo Clearing Services LLC
Professionals
Cs: (WFCSLLC) Keith J. Barnett & Dominyka Plukaite, Troutman Pepper Locke LLP, Atlanta, GA. OSC.
Rs: (WJV) Devin W. Bone, Paesano Akkashian PC, Bloomfield Hills, MI.
* 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 unauthorized transactions with respect to margin trading settle their case against Respondents. Respondent broker is granted expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. Majority Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Howard D. Jacob, Esq. - Chair; Howard L. Sobel; Jeffrey Zuckerman
Broker-Dealers Named
JP Morgan Securities LLC
Professionals
Cs: Todd A. Zuckerbrod, T.A. Zuckerbrod PA, Boca Raton, FL.
Rs: (JPMSLLC & JZG) Mark L. Parmelee & Evelyn Bukchin, Greenberg Traurig LLP, White Plains, 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
After entering into a Confidential Partial Settlement Agreement with Respondent broker-dealer regarding his wrongful termination claim, a broker is granted his request for reformation of defamatory information from appearing on his Form U5 record.
Notes
Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Stephen P. Calardo - Chair; Gregory William Hoover; David Martin Ammer
Broker-Dealers Named
W&S Brokerage Services Incorporated
Professionals
Cs: (TAC) T. Lawrence Hicks, Cetrulo Law PSC, Edgewood, KY.
Rs: (W&SBSInc) Thomas Metzger, Littler Mendelson PC, Columbus, OH. 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 Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12206 (Six-year Eligibility Rule) as the event or occurrence that gave rise to the customer's claims happened prior to the six-year time limit where said Respondent might be liable for damages. The customer's case involved privately traded real estate investment trusts (REITs).
* 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 provides factual background and grants a broker's request for expungement of a customer complaint from his CRD record involving the purchase of the ARC Hospitality Trust Real Estate Investment Trust.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Martin A. Feigenbaum, Esq. - Chair; Nancy J. Cliff, Esq.; Vincent C. Pangia
Broker-Dealers Named
Cetera Advisors LLC
Professionals
Cs: (BM) Alexander Truitt, Winget Spadafora & Schwartzberg LLP, New York, NY.
Rs: (CALLC) David Feldstein, Cetera Financial Group, 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 Panel awards a registered representative expungement of a customer complaint from his CRD record after they found said complaint to be factually impossible, clearly erroneous, and false.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Val D. Hornstein, Esq. - Chair; Morris S. Getzels, Esq.; James W. Kerr, Jr.
Broker-Dealers Named
Cetera Advisors LLC
Professionals
Cs: (BNE) Mickey B. Wright & Rhett B. Monroe, Lloyd Gray et al., Birmingham, AL.
Rs: (CALLC) David Feldstein, Cetera Financial Group, 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 non-appearing registered representative is held liable for the amounts due and owing pursuant to two promissory note agreements she executed as part of her employment with Claimant broker-dealer.
Notes
Arbitrator Remarks.
Arbitrators
Maryanne M. Esser, Esq.
Broker-Dealers Named
Wells Fargo Clearing Services LLC
Professionals
Cs: (WFCSLLC) Keith J. Barnett, Troutman Pepper Locke LLP, Atlanta, GA. OSC.
Rs: (GCM) No-show.
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