UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2018-06-19

2018-23

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Kettler v. AXA Advisors

Allegation II

Defamation

Forum

FINRA

Allegation III

Misappropriatn

Docket No

16-00802

Products

Equity

Issue Date

2018-06-01

Situs

Los Angeles

State

CA

Clmd Compensatory

3224.8

Total Amt Awarded

113.1

Compensatory Awarded

113.1

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."

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.

Notes

Whistleblowing case. Arbitrator Remarks -- Reformation U-5 granted. Arbitrator dissents with explanation.

People & Entities

Arbitrators

Elliott David Finkel, Esq. - Chair; Jack R. Goetz; Jeanne E. Irving, Esq. (Dissents)

Broker-Dealers Named

AXA Advisors LLC

Professionals

  • Cs: (JDK) Robert J. Girard II & Omar Bengali, Girard Bengali APC, Los Angeles, CA.
  • Rs: (AXAALLC) Kevin W. Alexander & Christopher Cato, Gordon & Rees et al., San Diego, CA. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Han v. Centaurus Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02597

Products

*

Issue Date

2018-05-30

Situs

Los Angeles

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 unsuitability claim from his CRD records.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Robert E. Jenks

Broker-Dealers Named

Centaurus Financial Incorporated; First Allied Securities Incorporated

Professionals

  • Cs: (PCH) Owen Harnett, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (CFInc) Paul King, Anaheim, CA. ISC.
  • Rs: (FASInc) Jeremey Wooden, Senior Counsel, Cetera Financial Group, El Segundo, CA. ISC.

TypeDisp

CustomerMember

Allegation I

BreachFiducDty

Short Caption

Barbaro v. Wells Fargo

Allegation II

Negligence

Forum

FINRA

Allegation III

Supervision

Docket No

16-01954

Products

Equity

Issue Date

2018-06-01

Situs

Tampa

State

FL

Clmd Compensatory

100.0

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 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.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Tashima v. UBS Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02453

Products

ARS

Issue Date

2018-05-31

Situs

Chicago

State

IL

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 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.

Notes

Panel composition issue. Arbitrator Remarks -- Expungement granted.

Arbitrators

Robert S. Sugarman, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (PT & LP) W. Preston Martin & Andrea M. Greene, Bressler Amery & Ross, Birmingham, AL.
  • Rs: (UBSFSInc) Stuart T. Rebish, Weehawken, NJ. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Owen v. Wells Fargo

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-01493

Products

VariableAnnuities; CDOs; MutualFunds

Issue Date

2018-05-31

Situs

Baltimore

State

MD

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

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.

Notes

Arbitrator Remarks -- Expungement granted. Explained Award.

Arbitrators

Joseph J. Dougherty, JD

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (SFO) Dochtor Kennedy, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (WFCSLLC) Deirdre C. Wolff, Wells Fargo Law Department, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Glanz v. UBS Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02503

Products

*

Issue Date

2018-05-31

Situs

Newark

State

NJ

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 expungement of a customer complaint involving a Managed Account Program from her CRD records.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Catherine Stewart, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (ABG) Eric Litow, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (UBSFSInc) David I. Hantman, Bressler Amery & Ross, New York, NY. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Rao

Allegation II

BreachContract

Forum

FINRA

Allegation III

UnjustEnrichment

Docket No

17-00577

Products

PromissoryNote

Issue Date

2018-06-01

Situs

New York

State

NY

Clmd Compensatory

158.6

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 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.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Micele v. National Securities

Allegation II

BreachContract

Forum

FINRA

Allegation III

TortiousInterference

Docket No

17-00690

Products

NP

Issue Date

2018-05-30

Situs

New York

State

NY

Clmd Compensatory

134.2

Total Amt Awarded

141.0

Compensatory Awarded

97.5

Punitive Damage Awarded

Attorney Fees Awarded

34.8

* 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.

TypeDisp

CustomerMember

Allegation I

FailToObey

Short Caption

Diamond v. Morgan Stanley

Allegation II

BreachContract

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

17-01072

Products

*

Issue Date

2018-05-29

Situs

New York

State

NY

Clmd Compensatory

55.1

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 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.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Jones v. Ross Sinclaire

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

17-01029

Products

MuniSecs

Issue Date

2018-05-31

Situs

Cincinnati

State

OH

Clmd Compensatory

455.0

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 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.

TypeDisp

SmallClms

Allegation I

Suitability

Short Caption

Hamlin v. Wells Fargo

Allegation II

Forum

FINRA

Allegation III

Docket No

17-02491

Products

Equity

Issue Date

2018-05-31

Situs

Portland

State

OR

Clmd Compensatory

10.2

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

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.

TypeDisp

SmallClms

Allegation I

Suitability

Short Caption

Melliza v. Ameriprise Financial

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

17-03206

Products

DirectInvesmts

Issue Date

2018-05-29

Situs

PP

State

PP

Clmd Compensatory

46.0

Total Amt Awarded

40.0

Compensatory Awarded

40.0

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 customer recovers compensatory damages from a broker-dealer in her case involving investments in two oil and gas limited partnerships.

Notes

None.

Arbitrators

Michael J. Quarequio, Esq.

Broker-Dealers Named

Ameriprise Financial Services Incorporated

Professionals

  • Cs: Jon A. Jacobson, Jacobson Law PA, West Palm Beach, FL.
  • Rs: (AFSInc) Edward A. Walton, Troy, MI. ISC.

TypeDisp

SmallClms

Allegation I

Misreprestn

Short Caption

Kennedy v. Fidelity Brokerage

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Docket No

17-03477

Products

Annuities

Issue Date

2018-06-01

Situs

PP

State

PP

Clmd Compensatory

22.0

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."

Case Summary

A customer, who alleges that the respondent broker-dealer failed to disclose tax liability in connection with annuities, loses her case.

Notes

None.

Arbitrators

Kenneth J. Horowitz

Broker-Dealers Named

Fidelity Brokerage Services LLC

Professionals

  • Cs: Pro se.
  • Rs: (FBSLLC) Noah D. Sorkin, Boston, MA. ISC.

TypeDisp

MemberEmployee

Allegation I

BreachContract

Short Caption

RM Stark v. Owoyemi

Allegation II

Forum

FINRA

Allegation III

Docket No

17-03481

Products

NP

Issue Date

2018-06-01

Situs

PP

State

PP

Clmd Compensatory

8.0

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 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.
  • Rs: (NAO) None.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Merrill Lynch v. Townsend

Allegation II

BreachContract

Forum

FINRA

Allegation III

UnjustEnrichment

Docket No

18-00318

Products

PromissoryNote

Issue Date

2018-05-30

Situs

PP

State

PP

Clmd Compensatory

141.1

Total Amt Awarded

147.8

Compensatory Awarded

141.1

Punitive Damage Awarded

Attorney Fees Awarded

6.6

* 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 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.

Notes

Arbitrator Remarks.

Arbitrators

Lee Hornberger, JD

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (MLPFSInc) Jeffrey M. Csercsevits, Rubin Fortunato & Harbison, Paoli, PA. OSC.
  • Rs: (BT) No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Golding v. UBS Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-01811

Products

Equity; MutualFunds; Annuities

Issue Date

2018-05-30

Situs

Salt Lake City

State

UT

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 three complaints from several customers from his CRD records.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Daniel M. Yamshon, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (GSG) Dochtor Kennedy & Michael O'Gara, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (UBSFSInc) Sarah K. Yates, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Graham v. Raymond James

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-02985

Products

Annuities

Issue Date

2018-05-30

Situs

Salt Lake City

State

UT

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 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.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Mary Margaret Bush, Esq.

Broker-Dealers Named

Raymond James Financial Services Incorporated

Professionals

  • Cs: (ABG) Owen Harnett, AdvisorLaw LLC, Broomfield, CO.
  • Rs: (RJFSInc) Robert M. Rudnicki, St. Petersburg, FL. ISC.
Any attempt to use robotics to download Awards posted on this WebSite or to gain access to the Awards on this WebSite in contravention of the Terms of Use Agreement is an unauthorized use, an abuse of the privileges extended to users of this WebSite, and, in our view, a violation of federal law.