* 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 loses his request for expungement of a customer complaint relating to a FINRA arbitration case from his CRD record.
Notes
The BrokerCheck Disclosure on this case has been updated to record the settlement amount paid by the broker's former employer (not LPL) of $7,500 but this Award denying expungement relief had not been linked to the Disclosure as of 3/18/19. There are two other Disclosures, where the arbitrations settled in 2006, expungement was granted, and links to the Award do appear in the Disclosure.
* 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 Arbitrator awards Claimant broker expungement of two arbitration cases from his CRD record.
Notes
Arbitrator Remarks -- Expungement granted. The BrokerCheck Disclosure on these two cases have been updated to record the settlement amounts of $28,000 ($76k clmd.) and $50,000 but this Award grating expungement relief in both matters had not been linked to the Disclosure of as 3/18/19 as we have seen FINRA do in other cases.
Arbitrators
Walter Steven Schwartz
Broker-Dealers Named
Raymond James Financial Services Incorporated; WFG Investments Incorporated
* 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
Respondent broker is found liable for amounts due and owing on a promissory note. However, said Respondent broker is awarded damages on his Counterclaim along with Reformation of his Form U-5 record. Claimant broker-dealer named another Respondent broker in this matter but those claims were severed from this case.
Notes
Rs Howard Leon was not assessed any portion of the awarded amount. Rs Steven R. Bell was assessed. Severance. Offset Award. Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Mark C. Perry, Esq. - Chair; Kimberlee Ann Fowler; Lawrence C. Levey
Broker-Dealers Named
National Securities Corporation
Professionals
Cs: (NSCorp) Fred Knopf, New York, NY. ISC.
Rs: (SRB) Arthur C. Koski, Law Offices of A.C. Koski, Boca Raton, 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
Claimant wins expungement of a previously settled customer arbitration involving a customer's investments in structured products, bonds, mutual funds, variable annuities, and preferred securities, from his CRD record.
Notes
Arbitrator Remarks -- Expungement granted. The BrokCheck Disclosure on this case has been updated to record the settlement amount of $250,000 but this Award granting expungement relief had not been linked to the Disclosure as of 3/18/19 as we have seen FINRA do in other cases.
Arbitrators
Martin A. Feigenbaum, Esq.
Broker-Dealers Named
UBS Financial Services Incorporated
Professionals
Cs: (FMF) Joelle A. Simms, Bressler Amery & Ross, Fort Lauderdale, FL.
Rs: (UBSFSInc) Craig A. Vollono, Weehawken, 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
Claimant broker loses his request for expungement of a customer complaint from his CRD record after Respondent broker-dealer's argument that said broker signed an Acceptance, Waiver & Consent with FINRA's Department of Enforcement in which he admitted to signing a customer's signature to a letter of authorization and admitted that he lied to Respondent.
* 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 majority public Panel finds that due to Respondent broker-dealer's deficient supervision, the Claimants' account paid excessive fees and commissions. As such, the Panel awarded the customers compensatory damages.
Notes
Majority Public Panel. Arbitrator Remarks.
Arbitrators
Howard N. Gorney - Chair; John Michael D'Amico; Nadine Nasser Donovan
Broker-Dealers Named
Janney Montgomery Scott LLC
Professionals
Cs: Michael A. Collora, Hogan Lovells US LLP, Boston, MA.
Rs: (JMSLLC) David Ward, Mintz Levin et al., Boston, MA. 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 is granted a default judgment (pursuant to Rule 12801) against Respondent broker-dealer Obsidian Financial Group and is awarded compensatory damages and interest relating to Respondents unauthorized use of margin, among other allegations. Claimant settled or voluntarily dismissed his allegations against the other named Respondents in this matter.
Notes
Rs Aegis Capital Corporation, Philip A. Dina, Frank Giacalone, Stephen Grivas, Qi Huang, Andrew C. Lavenziano, Erik Maugeri and Upinder Kumar Sharma were not assessed any portion of the awarded amount. Rs Obsidian Financial Group LLC was assessed. Rule 12801 default judgment. PHL -- Involves bankruptcy stay.
Arbitrators
Joseph J. Arata, Esq.
Broker-Dealers Named
Aegis Capital Corporation; Obsidian Financial Group LLC
Professionals
Cs: Hilton Wiener, Law Office of H. Wiener, Boca Raton, 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
The Panel grants Respondent broker-dealer's Motion to Dismiss/Motion for Directed Verdict regarding the customers claims finding that said claims were time barred having been filed at between 13 and 18 after the alleged claims arose.
Notes
Directed Verdict -- Full Dismissal. PHL -- Court Ordered Arbitration. Majority Public Panel.
Arbitrators
David I. Goldblatt, Esq.; - Chair; Rochelle Inger; Mark Cuccaro
Broker-Dealers Named
Merrill Lynch Pierce Fenner & Smith Incorporated
Professionals
Cs: George Lambert, Law Office of G.A. Lambert & Associates, Washington, DC.
Rs: (MLPFSInc) David J. Libowsky, Bressler Amery & Ross, 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
Claimant broker-dealer is granted a permanent injunction against Respondent broker on its raiding claim and is also awarded attorney fees pursuant to the terms of the parties' agreements. The Arbitrator Chair dissents from the majority.
Notes
Raiding case -- Permanent Injunction Granted. Arbitrator Remarks -- Arbitrator dissents with explanation.
Arbitrators
Ted M. Rosen, Esq. - Chair (Dissents); Peter A. Seibel; Henry F. Minnerop, Esq.
Broker-Dealers Named
Capital One Investing LLC
Professionals
Cs: (COILLC) James A. Nofi, Law Firm of J.A. Nofi LLC, Atlanta, GA. OSC.
Rs: (GG) Thomas B. Lewis & Jonathan A. Scobie, Stevens & Lee, Lawrenceville, NJ.
* 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 broker is held liable to Claimant broker-dealers for over $1 million in damages relating to the amounts due and owing on a promissory note.
Notes
Big $s. Arbitrator Remarks.
Arbitrators
William M. Howard, PhD, Esq.
Broker-Dealers Named
Morgan Stanley Smith Barney FA Notes Holdings LLC; Morgan Stanley Smith Barney LLC
Professionals
Cs: (MSSBLLC & MSSBFANHLLC) 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 Explained Award, Respondent broker-dealer is held solely liable to an elderly couple for disgorgement fees after failing to do its due diligence under FINRA Rule 2111 regarding said Claimants' ability to absorb an immediate tax liability with respect to the recommendation to surrender their variable annuities and use the revenue to purchase ETF investments.
Notes
Rs Capital One Investing LLC and Mollie Becker Taylor were not assessed any portion of the awarded amount. Rs Capital One Advisors LLC was assessed. Arbitrator Remarks -- Explained Award.
Arbitrators
Onnig Hatchig Dombalagian
Broker-Dealers Named
Capital One Advisors LLC; Capital One Investing LLC
Professionals
Cs: Pro se through John G. McCabe, Kenner, LA.
Rs: (COALLC & COILLC) Jon S. Hubbard, Troutman Sanders LLP, Richmond, VA. 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 voluntarily withdraws her claims against Respondent broker-dealer and three brokers involving her purchase of Puerto Rican bonds on margin. Two Respondent brokers get expungement relief of this matter from their CRD records.
* 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, an Arbitrator details why he denied the customer's claims finding that his account with Respondent broker-dealer was a self-directed account and the customer alone was responsible for the investment strategies he picked. As a result, the customer's claim of breach of fiduciary duty fails.
* 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
Respondent broker-dealer and broker are found liable to a customer on her allegation that immediately upon funding her account, Rs improperly used Cs money to fund a down payment for the refinancing of a mortgage for the benefit of Cs now ex-husband. Claimant also alleged that her remaining funds were transferred into a Type 2 account in order to trade on margin and purchase municipal bonds in order to conceal the transfer for the down payment.
Notes
Majority Public Panel.
Arbitrators
Mary Elizabeth Skelnik - Chair; Dineo Coleman Gary; Todd R. Gough
Broker-Dealers Named
JP Morgan Securities LLC
Professionals
Cs: K. Lawson Pedigo, Miller Keffer & Pedigo, Dallas, TX. and Blake L. Beckham, The Beckham Group PC, Dallas, TX.
Rs: (JPMSLLC) Terry R. Weiss, DLA Piper LLP, Atlanta, GA. OSC.
Rs: (EGK) Matthew B. Baum & David A. Gehn, Ellenoff Grossman & Schole, 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
Claimant broker-dealer settles its claims against Respondent broker relating to the balances due and owing on two promissory notes.
Notes
This is a Stipulated Award providing for the full principal without interest, plus reimbursement of filing fees, $5k in attorney fees and other relief. Arbitrator Remarks.
Arbitrators
Charles Scott McClellan
Broker-Dealers Named
Wells Fargo Advisors Financial Network LLC
Professionals
Cs: (WFAFNLLC) 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
A broker is awarded expungement of a customer complaint from his CRD record.
Notes
Arbitrator Remarks -- Expungement granted. The BrokerCheck Disclosure on this case has been updated to record the settlement amount of $90,000 ($1.415M clmd) but this Award granting expungement relief had not been linked to the Disclosure as of 3/18/19, as we have seen FINRA do in other cases.
Rs: (BCZ&Co) Jonathan W. Hackbarth, Quarles & Brady, Milwaukee, WI. OSC.
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.
