* 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 a declaratory judgment with respect to the enforceability of an indemnification clause and his held liable to Respondent broker-dealer for damages on its Counterclaim pursuant to the contract between the parties.
Notes
Please Note* This matter proceeded pursuant to Rule 13800 of the Code. Arbitrator Remarks.
People & Entities
Arbitrators
Jay Lawrence Witkin, Esq. - Chair; Renee Bryna Gerstman; Daniel Baruch Lidawer, CPA
Broker-Dealers Named
Coastal Equities Incorporated
Professionals
Cs: (REL) Alan Baskin, Weiss Brown PA, Scottsdale, AZ.
Rs: (CEInc) Francis J. Skinner, Chief Legal Officer, Wilmington, DE. 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 group of customers alleging negligence and seeking up to $5.8 million in damages relating to their IRA Account lose their case against Respondent broker-dealer and broker.
Notes
All-Public Panel.
Arbitrators
Benjamin F. Breslauer - Chair; Virginia Alice Suveiu; Barry D. Kaye
Broker-Dealers Named
JP Morgan Securities LLC
Professionals
Cs: Eric George & Katherine A. Petti, Ellis George et al., Los Angeles, CA. OSC and Richard Schwartz, Browne George Ross LLP, Los Angeles, CA. OSC.
Rs: (JPMSLLC & SH) Jason R. Lindsay & Hiba Kazim, Greenberg Traurig LLP, Los Angeles, 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 customer alleging negligent misrepresentation with respect to the purchase of a Northstar REIT settles his claims against Respondent broker-dealer and broker. Respondent broker is awarded expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. Arbitrator Remarks -- Expungement granted.
Arbitrators
Robert E. Jenks
Broker-Dealers Named
LPL Financial LLC
Professionals
Cs: Samuel B. Edwards, Shepherd Smith et al., Houston, TX.
Rs: (LPLFLLC) Eleonora Yonge, San Diego, CA. ISC.
Rs: (RRM) Bentley P. Stansbury III, Keesal Young & Logan, Long Beach, 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 trust alleging breach of contract among other allegations relating to its investment in Salesforce.com Inc. loses its case against Respondents. Respondents voluntarily dismiss without prejudice their request for expungement of this matter from Respondent broker's CRD to be held in abeyance and rescheduled at a later date.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Rescission Requested.
Arbitrators
David I. Levine, Esq.
Broker-Dealers Named
UBS Financial Services Incorporated
Professionals
Cs: Richard S. Frankowski, The Frankowski Firm LLC, Birmingham, AL.
Rs: (UBSFSInc & BBW) Anastasia B. Wohar, UBS Business Solutions US LLC, 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 wins expungement of seven customer complaints from his CRD record but loses his request for expungement of another after the written objection of the customer involved.
* 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 seeking $3 million in damages involving the purchase of various securities including master limited partnerships and mutual funds, settle their claims against Respondent broker-dealer. The Panel explains in detail why it has decided to award the Non-Party broker expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted. Explained Award.
Arbitrators
Edward R. Niederriter, Esq. - Chair; Will Murphy, Esq.; Kevin A. Llinas
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: Kristian P. Kraszewski, Kyros Law, Miami, FL.
Rs: (MSSBLLC) Trae D. Meyr, St. Petersburg, FL. 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
Two customers are awarded compensatory damages against Respondent broker-dealer relating to allegations that their trades were not placed in a timely manner and that said Respondent broker-dealer did not have an adequate risk management system or controls in place.
Notes
Majority Public Panel.
Arbitrators
Jacquelyn Marie Shannon, Esq. - Chair; Philip L. Manczak; James R. Augustine
Broker-Dealers Named
Charles Schwab & Company Incorporated
Professionals
Cs: Daniel P. Dietrich & William J. Schifino Jr., Gunster Yoakley & Stewart, Tampa, FL.
Rs: (CS&CInc) Andrew J. Melnick & Alexandra J. Marinzel, McGonigle PC, 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
In this small claims arbitration, a customer alleging that her account was frozen without notification or explanation loses her case against Respondent broker-dealer.
Notes
Please Note* This case was administered under the Special Proceeding option for simplified cases.
Arbitrators
Michael S. Matek, Esq.
Broker-Dealers Named
Aspiration Financial LLC
Professionals
Cs: Pro se.
Rs: (AFLLC) Bentley P. Stansbury III & Connor M. Trafton, Keesal Young & Logan, Long Beach, 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 seeking deferred compensation prevails on his claim against Respondent broker-dealer and is awarded $900,000 in compensatory damages but loses his request for reformation of his Form U5 record.
Notes
Big $s.
Arbitrators
B. John Dill - Chair; Frank Sanclemente; George Weston Mann, Jr.
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: (JCD) Steven N. Fuller, Litigation and Compliance Associates LLC, West Palm Beach, FL.
Rs: (MSSBLLC) Robin H. Rome & Jesse Grasty, Nukk-Freeman & Cerra, Chatham, NJ. 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 majority public Panel explains why it has decided to deny a customer's claims finding that he failed to prove by a preponderance of the evidence that he was negligently referred to the Non-Member parties in this case by Respondent Charles Schwab.
Notes
Majority Public Panel. Arbitrator Remarks -- Explained Award.
Arbitrators
Denise L. Presley, Esq. - Chair; Kenneth Dymond, Esq.; Patrick M. Markey, Esq.
Broker-Dealers Named
Charles Schwab & Company Incorporated; HFR Investment Advisory Services
Professionals
Cs: Terry J. Kirwan Jr., Kirwan Law Firm, Syracuse, NY.
Rs: (CS&CInc) Kevin H. Lewis, San Francisco, CA. ISC.
Rs: (HFRIASvcs & HFR) David G. Burch Jr., Barclay Damon Tower LLP, Syracuse, 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
Two Claimant broker-dealers are awarded over $1.2 million in damages against Respondent on their breach of contract claim but are denied their request for monetary sanctions relating to discovery.
Notes
Big $s. Panel composition issue. Arbitrator Remarks.
Arbitrators
Laura Wong-Pan - Chair; Joseph Leo Calabrese
Broker-Dealers Named
Stonehaven LLC; Titanium Alternative Solutions LLC
Professionals
Cs: (SLLC & TASLLC) David E. Robbins & Sam A. Silverstein, Kaufmann Gildin & Robbins, New York, NY. OSC.
Rs: (BBELtd) Timothy C. Lynch & Louis D. Tambaro, Offit/Kurman LLP, Baltimore, MD. 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 employment discrimination case, an All-Public Panel grants with prejudice Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rules 13206 (Six-year Eligibility Rule for Industry Disputes) and 13504 (Res Judicata).
Notes
Please Note* This matter was decided by an All-Public Panel pursuant to Rule 13802 of the Code. Pre-Hearing Adjudication -- Full Dismissal. Employment Discrimination case. Arbitrator Remarks.
Arbitrators
Michael S. Lazan, Esq. - Chair; Laura Carraher, Esq.; Leona Beane, Esq.
Broker-Dealers Named
JP Morgan Securities LLC; Bear Stearns Asset Management Incorporated
Professionals
Cs: (TR) None.
Rs: (JPMSLLC) Steven J. Pearlman, Proskauer Rose LLP, Chicago, IL. OSC.
Rs: (BSAMInc) No-show. -- Did not voluntarily submit to arbitration.
* 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 seeking damages of nearly $2.3 to $2.5 million on his wrongful termination and retaliation claims loses his case including reformation of alleged defamatory information from his Form U5 record.
Notes
None.
Arbitrators
Elwood C. Avery - Chair; Philip Alan Johnson; James H. Fehlberg, CFP
Broker-Dealers Named
Voya Financial Advisors Incorporated
Professionals
Cs: (SLB) Melinda Jane Steuer, The Law Offices of M.J. Steuer, Sacramento, 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
A customer is awarded damages on his negligence claim relating to Respondent broker's failure to liquidate his option position in Sabre stock in enough time as he requested. Said Respondent broker loses his request for expungement of this matter from his CRD record.
Notes
All-Public Panel. Arbitrator Remarks.
Arbitrators
Lawrence R. Maxwell, Jr., Esq. - Chair; Andrea U. Calve, Esq.; Will Pryor
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: Christopher W. Patton, Lynn Pinker et al., Dallas, TX.
Rs: (MSSBLLC & BLH) John Bersin, Roseville, CA. 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, an estate, and an limited partnership alleging unsuitable and risky investments in securities called Elks and Pacers lose their case against two Respondent broker-dealers and broker pursuant to FINRA Rules 12504(a)(6)(B) and 12206(a) (Six-year Eligibility Rule). Respondent broker is granted his request for expungement of this matter from his CRD record.
Notes
Pre-Hearing Adjudication -- Full Dismissal. Majority Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
David C. Redford, JD - Chair; Stephanie E. Simmons; Cynthia Ann Kittle
Broker-Dealers Named
Morgan Stanley; Citigroup Global Markets Incorporated
Professionals
Cs: William D. Mount Jr., Dale & Klein, McAllen, TX.
Rs: (MSSBLLC) Abigail D. Elrod, New York, NY. ISC.
Rs: (CGMInc & JBR) Adam K. Kauff, Kauff Laton Miller LLP, 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
A broker is awarded reformation of his Form U5 record along with expungement of a customer complaint from appearing on his CRD record. However, said broker loses his request for expungement of another customer complaint from same CRD record.
Notes
Arbitrator Remarks -- Expungement and Reformation U-5 granted.
Arbitrators
Robert J. Gregory - Chair; Jay M. Vogelson; Kurt L. Smith
Broker-Dealers Named
Mutual of Omaha Investor Services Incorporated
Professionals
Cs: (MLE) James P. Galvin, Galvin Legal PLLC, Decatur, GA.
Rs: (MOISInc) Megan S. Wright & Trenten P. Bausch, Cline Williams et al., Omaha, NE. 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 unusual case, although the Panel denies a non-appearing customer's Motion to Dismiss one of the complaints under eligibility grounds (pursuant to Rule 13206), said Panel ultimately denies Claimant broker's request for expungement of three customer complaints from appearing on his CRD record.
Notes
None.
Arbitrators
Stephany Adriene Watson, Esq. - Chair; Charles Scott McClellan; Joan M. Schroeder, Esq.
Broker-Dealers Named
Pacific West Securities Incorporated; Prudential Equity Group LLC
Professionals
Cs: (BJD) Dochtor Kennedy & Samantha Pastor, AdvisorLaw LLC, Westminster, CO and Harris Freedman, HLBS Law, Westminster, CO.
Rs: (PWSInc) No-show.
Rs: (PEGLLC) Jennifer E. Novoselsky, Reyes Kurson Limited, Chicago, IL. OSC.
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