* 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 Panel awards a broker expungement of a customer complaint from his CRD record after finding that said relief is appropriate because the allegations were factually impossible and clearly erroneous as well as false.
Notes
Arbitrator Remarks -- Expungement granted.
People & Entities
Arbitrators
Jan Preece Gaddis, Esq. (fka Jan Preece Garvin, Esq.) - Chair; Gayle B. Carlson, Esq.; Carl F. Bowmer, Esq.
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: (TOM) Matthew Bowness & Peter Sean Fruin, Maynard Nexsen PC, Birmingham, AL.
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
A majority public Panel grants Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12212 (Discovery Sanctions) with prejudice as a sanction for the customer's intentional failure to comply with discovery requests or the Panel's Order regarding the production of discovery.
Notes
Pre-Hearing Adjudication -- Full Dismissal. PHL -- Court-ordered arbitration. Sanctions imposed. Majority Public Panel. Arbitrator Remarks.
Arbitrators
Laverne Lewis Gaskins - Chair; Brian Douglas Hayes; Steven Sean McClinton
* 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 Panel awards a broker expungement of a customer complaint from her CRD record but unanimously denies her request for expungement of two more complaints with prejudice.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Janice L. Sperow, Esq. - Chair; James R. McGuone, Esq.; Evalyn Lipton Fishbein, Esq.
Broker-Dealers Named
Centaurus Financial Incorporated
Professionals
Cs: (MEA) Dochtor Kennedy & Peter Lindholm, AdvisorLaw, Broomfield, CO.
* 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 Respondent manipulated her into purchasing SNGX stock in violation of FINRA Rule 5310 (Best Execution Obligation) loses her case.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Cs did not request a hearing.
Arbitrators
Barbara M. Zak, Esq.
Broker-Dealers Named
Robinhood Securities LLC
Professionals
Cs: Pro se.
Rs: (RSLLC) Simeon M. Schopf, Washington, DC. 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
In this small claims arbitration, a customer alleging that Respondents engaged in fraud by allowing the unauthorized issuance and use of a Fidelity debit card under his name for his securities account loses his case.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code under the Special Proceeding option.
Arbitrators
Olivia J. Valentine
Broker-Dealers Named
Fidelity Investments
Professionals
Cs: Herbert Wiggins, Hearthstone Legal Group, Lakewood, 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
Although the customer was a victim of a scam, an Arbitrator explains why he has decided to deny his claim for damages finding that he is not entitled to any relief from Respondent broker-dealer under its Customer Protection Guarantee as said customer unfortunately gave access to his account information to the unauthorized user.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Cs did not request a hearing. Arbitrator Remarks -- Explained Award.
Arbitrators
Arocles Aguilar
Broker-Dealers Named
Fidelity Brokerage Services LLC
Professionals
Cs: Pro se.
Rs: (FBSLLC) Thomas F. Barnett, FMR LLC Legal Department, Boston, MA. 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 non-appearing broker is held liable to Claimant broker-dealer for the amounts due and owing pursuant to a Promissory Note Agreement he signed as part of his employment.
Notes
Damage Anomaly.
Arbitrators
John P. Cullem, Esq.
Broker-Dealers Named
Wells Fargo Clearing Services LLC
Professionals
Cs: (WFCSLLC) Jason D. Evans & Jacquelyn K. Arnold, Troutman Pepper et al., Charlotte, NC. 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 loses his Counterclaim, is assessed monetary sanctions in the form of attorney fees pursuant to FINRA Rule 13504(a)(10) in connection with his frivolous Motion to Dismiss, and is held liable to Claimant broker-dealer for the amounts due and owing under a promissory note agreement.
* 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 raiding case, a FINRA member firm alleging that Respondent broker breached the Protocol for Broker Recruiting and his contractual obligations by engaging in a scheme to obtain highly sensitive account information, along with social security numbers from its clients for his own personal benefit is awarded compensatory damages.
Notes
Raiding case.
Arbitrators
Susan L. Walker, Esq. - Chair; Richard S. Hines, JD; Marques P.D. Richeson
Broker-Dealers Named
Ameriprise Financial Services LLC
Professionals
Cs: (AFSLLC) Ian Blodger & Edward B. Magarian, Dorsey & Whitney, Minneapolis, MN. OSC.
Rs: (MCD) Lisanne M. Butterfield, Carr Butterfield LLP, Portland, OR.
* 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 lost compensation and reformation of alleged defamatory information from his Form U5 record loses his case against Respondent broker-dealer.
Notes
None.
Arbitrators
Diane Ciccone, Esq.
Broker-Dealers Named
Wells Fargo Clearing Services LLC
Professionals
Cs: (DRF) Shawn P. Barnes, Calcagni & Kanefsky, Newark, NJ.
Rs: (WFCSLLC) Frank J. Cuccio & Jonathan S. Starego, Bressler Amery & Ross, Florham Park, 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 customer alleging that after she transferred her margin account to Respondent it breached its fiduciary duty by prematurely liquidating her securities positions without justification loses her case.
Notes
All-Public Panel.
Arbitrators
Gregory Hunter Mathews - Chair; James W. (Jim) Geiger; James T. Carney
Broker-Dealers Named
Sofi Securities LLC
Professionals
Cs: Pro se.
Rs: (SSLLC) Dana Sirkis Gloor, Gloor Law & Arbitration LLC, 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
An Arbitrator provides factual background and explains why he has decided to grant Claimant broker's request for expungement of eight customer complaints from his CRD record involving the purchase of Puerto Rican securities.
* 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 his former employer for over $7 million in damages relating to the amounts due and owing on two promissory note agreements as well as Investment Advisor Group fees and a net pay shortfall.
Notes
Big $s. Arbitrator Remarks.
Arbitrators
Maryanne M. Esser, Esq.
Broker-Dealers Named
RBC Capital Markets LLC
Professionals
Cs: (RBCCMLLC) Michael E. Rowe, Dorsey & Whitney, Minneapolis, MN. OSC.
Rs: (JS) None. Previously represented by counsel until 4/18/25.
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