* 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-dealers' Pre-Hearing Motions to Dismiss pursuant to FINRA Rule 12206 (Six-year Eligibility Rule). Customers' claim involved their investment in the Behringer Harvard REIT, among other things.
Notes
Pre-Hearing Adjudication -- Full Dismissal. All-Public Panel. Arbitrator Remarks.
Arbitrators
Dean J. Dietrich, Esq. - Chair; Clifford A. Threlkeld; Martin Joel Fassler
Broker-Dealers Named
Berthel Fisher & Company Financial Services Incorporated; Royal Alliance Associates Incorporated
Professionals
Cs: Richard B. Fosher, Oakes & Fosher, St. Louis, MO.
Rs: (BF&CFSInc) Peter J. McElligott, Anthony Ostlund et al., Minneapolis, MN. OSC.
Rs: (RAAInc) Bradley A. Fishman, Jersey City, NJ. 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 settles her claim against Respondent broker-dealer relating to the purchase of Amira Nature Foods Ltd., in addition to autocall notes on securities including Apple, Alibaba and American Airlines. Non-Party broker wins expungement.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
William Kent Brown, Esq. - Chair; Diane M. Perry, Esq.; Donald Theodore Ryce, Jr., Esq.
Broker-Dealers Named
Morgan Stanley Smith Barney LLC dba Morgan Stanley
* 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
The Panel holds two brokers jointly and severally liable to a Claimant alleging unsuitability, mismanagement, among other things. All other named Respondents were either voluntarily dismissed by Claimant pursuant to FINRA Rule 12700 or found not liable.
Notes
Damage Anomaly. Rs Concorde Investment Services LLC, Westminster Financial Securities Inc., Jason Patrick Kavanaugh, Kimberlee Elizabeth Levy, Paul M. Mallory and Westminster Financial Advisory Corporation were not assessed any portion of the awarded amount. Rs Richard Grant Cody and Jill M. Cody were assessed. Pre-Hearing Adjudication -- Party Dismissal. Majority Public Panel.
Arbitrators
Mary E. Bassett - Chair; James R. Collins, Esq.; Christine R. Fitzgerald
* 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 settle their claims against Respondent broker-dealer and three named brokers. Two named brokers win expungement of this matter from their CRD records.
Notes
This is a Stipulated Award. Majority Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Peter A. Goldman, Esq. - Chair; Bernard Lieberman; James A. Blalock, III, Esq.
Broker-Dealers Named
Wells Fargo Advisors LLC
Professionals
Cs: Ari Feldman, Guerriera Feldman & Williams, Brooklyn, 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 Arbitration Panel finds that Claimant broker was wrongfully terminated by Respondent broker-dealer and is awarded over $1 million dollars in damages and expungement of his Form U-5 relating to his defamation claim. Respondent broker-dealer's Counterclaim for amounts due and owing on a promissory note are ordered forgiven.
Notes
Big $s. Damage Anomaly. Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Richard E. Castiglioni - Chair; Patricia Kathleen Costello; Myron Samuel Glucksman
Broker-Dealers Named
First Republic Securities Company LLC
Professionals
Cs: (CHR) Brian J. Neville & Mary Grace White, Lax & Neville, New York, NY.
Rs: (FRSCLLC) Mauricio S. Beugelmans, Schiff Hardin LLP, San Francisco, 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
A group of Claimant brokers win over $600,000 on their compensation claims against Respondent broker-dealer. Claimants' claims against Respondent brokers are voluntarily dismissed and/or denied.
Notes
Big $s. Rs Rohan O. Barnett, Jeffrey Kenneth Galvani, Randy Scott Beller, Frank John Cannarozzo, Robert William McGrath, Ian Parker, Adrian Andrew Campbell and Weldon Maddan were not assessed any portion of the awarded amount. Rs Rothschild Lieberman LLC was assessed.
Arbitrators
Betty Chen - Chair; Laura Wong-Pan; Roger J. Hawke, Esq.
* 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 alleging churning, unauthorized trading, among other things is awarded over $1 million in damages, inclusive of $700,000 in punitive damages (pursuant to the Federal Arbitration Act and case law) against Respondent broker-dealer and two brokers. Customer's claims against remaining brokers are stayed due to bankruptcy and/or settled.
Notes
Big $s. Punitive Damages Awarded. Rs Salvatore Charles Caruso, Anthony Fusco and Michael Salvatore Stanton were not assessed any portion of the awarded amount. Rs Legend Securities Inc., Danard Warthen Brown and Frank Philip Fusco were assessed. PHL -- Involves bankruptcy stay. All-Public Panel. Arbitrator Remarks -- Case law cited.
Arbitrators
Michele S. Riley - Chair; Benjamin L. Anderson; Wallace Anthony Showman, Esq.
Broker-Dealers Named
Legend Securities Incorporated
Professionals
Cs: Timothy J. Dennin, T.J. Dennin PC, Northport, NY.
Rs: (LSInc) No-show.
Rs: (DWB) None.
Rs: (SCC) No-show.
Rs: (FPF) None.
Rs: (AF) None.
Rs: (MSS) Michael C. Farkas, M.C. Farkas PLLC, 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
Cs alleged that Rs and Non-Members did not compensate him for his service as a Financial and Operations Principal with Rs and a financial consultant with CG Holding and CG Wealth for the period between 9/17 ad 12/17.
Notes
Rs Capital Guardian Holding LLC, Capital Guardian Wealth Management LLC, Capital Guardian Group LLC and Justin Lowe were not assessed any portion of the awarded amount. Rs Capital Guardian LLC was assessed.
Arbitrators
Donald B. Vaden, Esq.
Broker-Dealers Named
Capital Guardian LLC; Capital Guardian Holding LLC; Capital Guardian Wealth Management LLC; Capital Guardian Group LLC
Professionals
Cs: (JEK) None.
Rs: (CGLLC) Sandro L. Ramos, CRCP, ISC.
Rs: (CGHLLC, CGWMLLC, CGGLLC & JL) Neil S. Baritz, Baritz & Colman, Boca Raton, FL. OSC.
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