UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2019-03-21

2019-11

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Powell v. LPL Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02633

Products

NP

Issue Date

2019-02-25

Situs

Birmingham

State

AL

Clmd Compensatory

0.0

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 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.

People & Entities

Arbitrators

J. Maxwell Williams, Esq.

Broker-Dealers Named

LPL Financial LLC

Professionals

  • Cs: (GRP) Joshua D. Jones, Bressler Amery & Ross, Birmingham, AL.
  • Rs: (LPLFLLC) Jon D. Kaplon, Boston, MA. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Willis v. Centaurus Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02514

Products

VariableAnnuities; LifeInsurance

Issue Date

2019-03-01

Situs

Phoenix

State

AZ

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 is awarded expungement of three customer complaints from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted. Explained Award.

Arbitrators

Walter Steven Schwartz

Broker-Dealers Named

Centaurus Financial Incorporated; Invest Financial Corporation; LPL Financial LLC

Professionals

  • Cs: (OKW) Christopher Cummins & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (CFInc) Michael Leahy, Anaheim, CA. ISC.
  • Rs: (IFCorp) Scott R. Forbush, Jackson National Life Insurance Company, Lansing, MI. ISC.
  • Rs: (LPLFLLC) Jon D. Kaplon, Boston, MA. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Cooper v. Raymond James

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02712

Products

Equity

Issue Date

2019-02-25

Situs

Phoenix

State

AZ

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

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

Professionals

  • Cs: (BAC) Christopher Cummins & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (RJFSInc) Stanton A. Fears, St. Petersburg, FL. ISC.
  • Rs: (WFGIInc) No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Edwards v. HD Vest

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03567

Products

NP

Issue Date

2019-02-26

Situs

Hartford

State

CT

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

Claimant broker wins expungement of a customer (who happens to be the broker's brother) complaint from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Samuel Harrison Chorches, Esq.

Broker-Dealers Named

HD Vest Investment Services

Professionals

  • Cs: (ME) Erica Harris, AdvisorLaw LLC, Westminster, CO.
  • Rs: (HDVISInc) Eric Chartan, Irving, TX. ISC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

National Securities v. Bell

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

17-02960

Products

PromissoryNotes

Issue Date

2019-02-26

Situs

Boca Raton

State

FL

Clmd Compensatory

34.7

Total Amt Awarded

30.0

Compensatory Awarded

7.5

Punitive Damage Awarded

Attorney Fees Awarded

21.0

* 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

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.
  • Rs: (HL) No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Faro v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-01821

Products

Equity; MutualFunds; Derivatives; CorpDebt; VariableAnnuities

Issue Date

2019-02-28

Situs

Miami

State

FL

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

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.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Isaacson v. Quick & Reilly

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03036

Products

MutualFunds; Equity; REITs

Issue Date

2019-02-26

Situs

Boca Raton

State

FL

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

Claimant broker wins expungement of two previously settled customer complaints from his CRD record involving mutual funds among other investments.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Mark Allen Bilawsky

Broker-Dealers Named

Independent Financial Group LLC; Quick & Reilly Incorporated

Professionals

  • Cs: (WDI) Harris Freedman, HLBS Law, Westminster, CO.
  • Rs: (Q&RInc) Joel M. Everest, Bressler Amery & Ross, Birmingham, AL. OSC.
  • Rs: (IFGLLC) Sarah J. Kreisman, Chief Legal Counsel, Vice President, Compliance, San Diego, CA. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Shanawany v. Windsor Street

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

18-03064

Products

NP

Issue Date

2019-02-27

Situs

Boca Raton

State

FL

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

Broker wins expungement of defamatory information appearing on his Form U-5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Carl Shechter, Esq.

Broker-Dealers Named

Windsor Street Capital Limited Partnership

Professionals

  • Cs: (RS) Eric Litow, HLBS Law LLC, Westminster, CO.
  • Rs: (WSCLP) No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

O'Hare v. Merrill Lynch

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03509

Products

Equity

Issue Date

2019-02-27

Situs

Boca Raton

State

FL

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

An Arbitrator awards Claimant broker expungement of a customer complaint from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Carl Shechter, Esq.

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (GJH) John D. Stewart, Baritz & Colman, New York, NY.
  • Rs: (MLPFSInc) Joel M. Everest, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Cook v. VSR Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-00197

Products

NP

Issue Date

2019-02-28

Situs

Des Moines

State

IA

Clmd Compensatory

0.0

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

An Arbitrator denies Claimant's request for expungement of a customer complaint from her CRD record.

Notes

None.

Arbitrators

Jonathan B. Gilbert, Esq.

Broker-Dealers Named

VSR Financial Services Incorporated

Professionals

  • Cs: (LLC) Christopher Cummins & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (VSRFSInc) Christina Vourakis, Cetera Financial Group, El Segundo, CA. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Mackevich v. Mesirow Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-00787

Products

NP

Issue Date

2019-02-28

Situs

Chicago

State

IL

Clmd Compensatory

0.0

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

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.

Notes

None.

Arbitrators

William M. Koziol, Esq.

Broker-Dealers Named

Mesirow Financial Incorporated

Professionals

  • Cs: (JBM) Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (MFInc) James L. Kopecky, Kopecky Schumacher Rosenburg PC, Chicago, IL. OSC.

TypeDisp

CustomerMember

Allegation I

Churning

Short Caption

Provost v. Janney Montgomery

Allegation II

Supervision

Forum

FINRA

Allegation III

ExcessiveFees

Docket No

18-01405

Products

*

Issue Date

2019-02-26

Situs

Boston

State

MA

Clmd Compensatory

395.0

Total Amt Awarded

115.8

Compensatory Awarded

115.8

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 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.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Pyne v. Berthel Fisher

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02430

Products

NP

Issue Date

2019-03-01

Situs

Minneapolis

State

MN

Clmd Compensatory

0.0

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

Registered representative loses his request for expungement of five customer complaints from his CRD record.

Notes

None.

Arbitrators

Thomas J. Gmeinder, Esq.

Broker-Dealers Named

Berthel Fisher & Company Financial Services Incorporated

Professionals

  • Cs: (JTP) Christopher Cummins & Dochtor D. Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (BF&CFSInc) Shelley R. Davenport, Cedar Rapids, IA. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Capel v. Merrill Lynch

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

17-03307

Products

NP

Issue Date

2019-02-26

Situs

Raleigh

State

NC

Clmd Compensatory

Equity

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

Claimant broker wins expungement of his Form U-5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Langfred W. White, Esq. - Chair; Karen A. West, JD; David Josephsohn

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (GDC) Linda D. Friedman & Jared Calvert, Stowell & Friedman, Chicago, IL.
  • Rs: (MLPFSInc) Kathryn D. Perreault, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Ameriprise Financial v. Disesso

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

16-01111

Products

PromissoryNote

Issue Date

2019-02-28

Situs

Newark

State

NJ

Clmd Compensatory

165.1

Total Amt Awarded

201.4

Compensatory Awarded

165.1

Punitive Damage Awarded

Attorney Fees Awarded

28.2

* 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 explains why damages are warranted on Claimant broker-dealer's breach of promissory note case.

Notes

Arbitrator Remarks.

Arbitrators

Abraham Harry Bunis - Chair; Kip C. Lubcke, Esq.; Peter John Maurice Forbes

Broker-Dealers Named

Ameriprise Financial Services Incorporated

Professionals

  • Cs: (AFSInc) Ryan S. Nichols, Shumaker Loop & Kendrick, Sarasota, FL. OSC.
  • Rs: (NMD) None.

TypeDisp

CustomerMember

Allegation I

UnauthTdg

Short Caption

Dootson v. Aegis Capital

Allegation II

Suitability

Forum

FINRA

Allegation III

Supervision

Docket No

15-02634

Products

Equity; Margin

Issue Date

2019-03-01

Situs

New York

State

NY

Clmd Compensatory

265.8

Total Amt Awarded

160.2

Compensatory Awarded

160.2

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

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.
  • Rs: (ACCorp, FG & EM) Gregg Breitbart, Kaufman Dolowich Voluck, Boca Raton, FL. OSC.
  • Rs: (OFGLLC) Kevin Sharma, Woodbury, NY. ISC.
  • Rs: (PAD & UKS) Martin P. Unger, Wexler Burkhart et al., Garden City, NY.
  • Rs: (SG, QH & ACL) None.

TypeDisp

CustomerMember

Allegation I

Misappropriatn

Short Caption

Chtcherban v. Merrill Lynch

Allegation II

Fraud

Forum

FINRA

Allegation III

BreachContract

Docket No

15-03059

Products

*

Issue Date

2019-03-01

Situs

New York

State

NY

Clmd Compensatory

3578.0

Total Amt Awarded

0.0

Compensatory Awarded

0.0

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

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.

TypeDisp

MemberEmployee

Allegation I

Raiding

Short Caption

Capital One v. Gigliotti

Allegation II

TakingRecords

Forum

FINRA

Allegation III

BreachContract

Docket No

18-01133

Products

NP

Issue Date

2019-02-25

Situs

New York

State

NY

Clmd Compensatory

100.0

Total Amt Awarded

70.8

Compensatory Awarded

0.0

Punitive Damage Awarded

0.0

Attorney Fees Awarded

58.7

* 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.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Ruediger v. Ameriprise Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

17-03415

Products

NP

Issue Date

2019-02-27

Situs

Portland

State

OR

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

An Arbitrator denies Claimant broker's request for expungement of a customer complaint from his CRD record.

Notes

None.

Arbitrators

Katherine H. O'Neil, Esq.

Broker-Dealers Named

Ameriprise Financial Services Incorporated

Professionals

  • Cs: (DJR) Erica Harris & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (AFSInc) Howard M. Klausmeier, Troy, MI. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Burch v. Merrill Lynch

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02605

Products

NP

Issue Date

2019-03-01

Situs

Portland

State

OR

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

Claimant broker is awarded expungement relief with respect to a customer complaint appearing on his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Dean J. Dietrich, Esq.

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (SCB) None.
  • Rs: (MLPFSInc) Sarah K. Yates, Bressler Amery & Ross, Birmingham, AL. OSC.
  • Rs: No-show. Did not voluntarily submit to arbitration.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Rosenzweig v. PNC Investments

Allegation II

Forum

FINRA

Allegation III

Docket No

18-01553

Products

MutualFunds

Issue Date

2019-02-26

Situs

Philadelphia

State

PA

Clmd Compensatory

Equity

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 broker wins expungement of seven customer complaints from his CRD record.

Notes

PHL -- Involves bankruptcy stay. Arbitrator Remarks -- Expungement granted. Panel composition issue.

Arbitrators

Carol H. Gold, Esq.

Broker-Dealers Named

WFG Investments Incorporated; PNC Investments; UBS Financial Services Incorporated

Professionals

  • Cs: (IWR) Christopher Coss, Coss & Momjian, Bala Cynwyd, PA.
  • Rs: (PNCILLC) Frederic L. Liberman, Seyfarth Shaw LLP, New York, NY. OSC.
  • Rs: (UBSFSInc) Thomas McHugh & Sean J. Coughlin, Bressler Amery & Ross, New York, NY. OSC.
  • Rs: (WFGIInc) David Williams, Dallas, TX. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Meierdiercks v. SA Stone

Allegation II

Forum

FINRA

Allegation III

Docket No

18-01671

Products

VariableAnnuities

Issue Date

2019-02-25

Situs

Philadelphia

State

PA

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

Claimant broker wins expungement of a customer complaint from his CRD record involving variable annuities.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Carol H. Gold, Esq.

Broker-Dealers Named

SA Stone Wealth Management Incorporated

Professionals

  • Cs: (IBM) Christopher Cummins, AdvisorLaw LLC, Westminster, CO.
  • Rs: (SASWMInc) Andrew R. Chambless, Birmingham, AL. ISC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Morgan Stanley v. Bliss

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-00434

Products

PromissoryNote

Issue Date

2019-02-26

Situs

PP

State

PP

Clmd Compensatory

1212.5

Total Amt Awarded

1282.9

Compensatory Awarded

1212.4

Punitive Damage Awarded

Attorney Fees Awarded

8.1

* 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.
  • Rs: (JCB) No-show.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Robinson

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-02073

Products

PromissoryNote

Issue Date

2019-02-27

Situs

PP

State

PP

Clmd Compensatory

46.5

Total Amt Awarded

46.5

Compensatory Awarded

46.5

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

Respondent broker is held liable to Claimant broker-dealer for the amount due and owing on a promissory note.

Notes

None.

Arbitrators

Christopher M. McMurray, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (WFCSLLC) Jessica Klein, St. Louis, MO. ISC.
  • Rs: (DTR) Tosh Grebenik, FA Expungement LLC, Denver, CO.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Cambridge Investment v. Strange

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-02977

Products

PromissoryNote

Issue Date

2019-02-25

Situs

PP

State

PP

Clmd Compensatory

6.9

Total Amt Awarded

8.4

Compensatory Awarded

6.9

Punitive Damage Awarded

Attorney Fees Awarded

1.5

* 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 held liable to Claimant broker-dealer for the balances due and owing on a Promissory Note and a Registered Representative Agreement.

Notes

Arbitrator Remarks.

Arbitrators

Edith N. Dinneen, Esq.

Broker-Dealers Named

Cambridge Investment Research Incorporated

Professionals

  • Cs: (CIRInc) Bryce Shelman, Fairfield, IA. ISC.
  • Rs: (GMS) No-show.

TypeDisp

SmallClms

Allegation I

Suitability

Short Caption

Juneau v. Capital One

Allegation II

Misreprestn

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

18-02991

Products

VariableAnnuities; ETFs

Issue Date

2019-02-27

Situs

PP

State

PP

Clmd Compensatory

4.6

Total Amt Awarded

1.3

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

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.
  • Rs: (MBT) None.

TypeDisp

SmallClms

Allegation I

BreachFiducDty

Short Caption

Eiffert v. Ameriprise Financial

Allegation II

Supervision

Forum

FINRA

Allegation III

Negligence

Docket No

18-03242

Products

NP

Issue Date

2019-02-26

Situs

PP

State

PP

Clmd Compensatory

17.1

Total Amt Awarded

0.0

Compensatory Awarded

0.0

Punitive Damage Awarded

0.0

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

Customer alleging negligence, among other things, loses her claim against Respondent broker-dealer and four brokers.

Notes

None.

Arbitrators

Mary Elizabeth Skelnik

Broker-Dealers Named

Ameriprise Financial Services Incorporated

Professionals

  • Cs: Pro se.
  • Rs: (AFSInc, CEH, SJJ, EMS & KWT) Sydney H. Crowder, Minneapolis, MN. ISC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

de Arellano v. Herbert J. Sims

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

17-03147

Products

MuniSecs; Margin

Issue Date

2019-02-27

Situs

San Juan

State

PR

Clmd Compensatory

0.0

Total Amt Awarded

0.0

Compensatory Awarded

0.0

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 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.

Notes

All-Public Panel. Panel composition issue. Arbitrator Remarks -- Expungement granted.

Arbitrators

Larry E. Ray, Esq. - Chair; Alan E. Linden, BS, MA; Daniel Joseph Chiodo

Broker-Dealers Named

Herbert J. Sims & Company Incorporated

Professionals

  • Cs: Marie E. Lopez-Adames, Gonzalez Lopez & Lopez Adames, San Juan, PR.
  • Rs: (HJS&CInc, RAC & GRA) Daniel S. Newman, Nelson Mullins et al., Miami, FL. OSC.
  • Rs: (JIR) No-show.

TypeDisp

CustomerMember

Allegation I

BreachFiducDty

Short Caption

Halapir v. Fidelity Brokerage

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Negligence

Docket No

18-00831

Products

Equity

Issue Date

2019-02-25

Situs

Nashville

State

TN

Clmd Compensatory

82.0

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

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.

Notes

Arbitrator Remarks -- Explained Award.

Arbitrators

D. Bruce Shine, Esq.

Broker-Dealers Named

Fidelity Brokerage Services LLC

Professionals

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

TypeDisp

CustomerMember

Allegation I

UnauthTdg

Short Caption

Hamm v. J.P. Morgan

Allegation II

Suitability

Forum

FINRA

Allegation III

Misreprestn

Docket No

17-00612

Products

MuniSecs; Margin

Issue Date

2019-02-28

Situs

Dallas

State

TX

Clmd Compensatory

500.0

Total Amt Awarded

114.0

Compensatory Awarded

114.0

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

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.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Buchanan v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-01130

Products

ARS

Issue Date

2019-02-26

Situs

Houston

State

TX

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 from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Jeffrey R. Jury

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (RMB) Joelle A. Simms, Bressler Amery & Ross, Fort Lauderdale, FL.
  • Rs: (UBSFSInc) No-show.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Ellis

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-02830

Products

PromissoryNote

Issue Date

2019-02-26

Situs

Seattle

State

WA

Clmd Compensatory

110.7

Total Amt Awarded

Equity

Compensatory Awarded

Equity

Punitive Damage Awarded

Attorney Fees Awarded

Equity

* 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.
  • Rs: (PE) Bridget Donegan, Larkins Vacura Kayser LLP, Portland, OR.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Wiziarde v. BC Ziegler

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02932

Products

DirectInvesmts

Issue Date

2019-02-25

Situs

Milwaukee

State

WI

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 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.

Arbitrators

Leon Fox, JD

Broker-Dealers Named

BC Ziegler & Company

Professionals

  • Cs: (AMW) Dochtor Kennedy & Erica Harris, AdvisorLaw LLC, Westminster, CO.
  • Rs: (BCZ&Co) Jonathan W. Hackbarth, Quarles & Brady, Milwaukee, WI. OSC.
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