UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2020-02-14

2020-02

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Proctor v. USAA Financial Advisors

Allegation II

Defamation

Forum

FINRA

Allegation III

Compensatn

Docket No

18-02540

Products

NP

Issue Date

2020-01-02

Situs

San Diego

State

CA

Clmd Compensatory

0.0

Total Amt Awarded

Equity

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

In this Consolidated Award, a group of brokers settle their monetary claims against Respondent broker-dealer and are granted reformation of their Form U-5 records.

Notes

This is a Consolidated Award. Arbitrator Remarks -- Reformation U-5 granted.

People & Entities

Arbitrators

Randall Brian Christison - Chair; Deanna J. Johnson; Blake Dean Baxter, Jr.

Broker-Dealers Named

USAA Financial Advisors Incorporated

Professionals

  • Cs: (JTP, JMG, JLM, MEA, AMW & BJC) Jonah A. Toleno, Shustak Reynolds & Partners, San Diego, CA.
  • Rs: (USAAFAInc) Michael R. Greco, Fisher & Phillips, Denver, CO. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Sepe v. Merrill Lynch

Allegation II

BreachContract

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

18-01953

Products

Equity

Issue Date

2020-01-10

Situs

Boca Raton

State

FL

Clmd Compensatory

0.0

Total Amt Awarded

Equity

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 majority-public Panel explains in detail why it has granted Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12206 (Six-year Eligibility Rule). The claim relates to customer B. Sepe's variable compensation award through his former employer, Merrill Lynch, which included his Incentive Stock Options and shares of the company stock MER (later BAC).

Notes

Pre-Hearing Adjudication -- Full Dismissal. Majority Public Panel. Arbitrator Remarks -- Explained Award.

Arbitrators

Steven Gerard Goerke, Esq. - Chair; Gary Mathew Singer; Michael A. Levin, Esq.

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: Michael S. Taaffe, Shumaker Loop & Kendrick, Sarasota, FL.
  • Rs: (MLPFSInc) Leonel Peraza Jr., Bressler Amery & Ross, Miami, FL. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Bidgood v. Charles Schwab

Allegation II

Supervision

Forum

FINRA

Allegation III

Negligence

Docket No

18-02471

Products

DirectInvesmts; Margin

Issue Date

2020-01-10

Situs

Boca Raton

State

FL

Clmd Compensatory

0.0

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 customer settles her claims against Respondent broker-dealer involving investments in oil and gas limited partnerships and the use of margin in her account. Non-Party broker is awarded expungement.

Notes

This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

Barth Satuloff, CPA - Chair; Leonard Michael Cusano; Edward Alexander Jaffe

Broker-Dealers Named

Charles Schwab & Company Incorporated

Professionals

  • Cs: Jon A. Jacobson, Jacobson Law PA, West Palm Beach, FL.
  • Rs: (CS&CInc) Anthony L. Valenzuela, Vice President & Associate General Counsel, San Francisco, CA. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Mathis v. Wells Fargo

Allegation II

Expungement(CRD)

Forum

FINRA

Allegation III

Defamation

Docket No

19-01145

Products

VariableAnnuities; Equity

Issue Date

2020-01-07

Situs

Orlando

State

FL

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 is granted expungement of two customer complaints from his CRD record and reformation of his Form U-5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted. Expungement granted.

Arbitrators

John P. Cullem, Esq. - Chair; Lewis Gordon Brewer; Gregory L. Hess

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: (GEM) Bruce W. Barnes, B.W. Barnes PA, Safety Harbor, FL.
  • Rs: (WFALLC) Patricia E. Cowart, Wells Fargo Legal Department, Fort Lauderdale, FL. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Grace v. Citigroup Global

Allegation II

Forum

FINRA

Allegation III

Docket No

19-02036

Products

Equity

Issue Date

2020-01-09

Situs

Atlanta

State

GA

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 one customer complaint and 28 NASD Arbitration Cases from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Harvey R. Linder, Esq.

Broker-Dealers Named

Citigroup Global Markets Incorporated

Professionals

  • Cs: (MJG) David I. Hantman, Bressler Amery & Ross, New York, NY.
  • Rs: (CGMInc) Kate Brooker Evans, Tampa, FL. ISC.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Eder v. Neuberger Berman

Allegation II

BreachContract

Forum

FINRA

Allegation III

Misreprestn

Docket No

15-03341

Products

NP

Issue Date

2020-01-06

Situs

Chicago

State

IL

Clmd Compensatory

6642.3

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 broker seeking between $6,642,292 - $9,103,878 (originally said broker was seeking $11,000,000 in compensatory damages) in lost compensation loses his claim against a group of Respondent broker-dealers.

Notes

Panel composition issue.

Arbitrators

P.J. Boylan, Esq. - Chair; Theodore W. Wrobleski, Esq.; Susan L. Walker, Esq.

Broker-Dealers Named

Neuberger Berman Company Group; Neuberger Berman Group LLC; Neuberger Berman Fixed Income LLC; Neuberger Berman Investment Services LLC; Neuberger Berman LLC; Neuberger Berman Management LLC

Professionals

  • Cs: (FE) Rogge Dunn & Josh Iacuone, Rogge Dunn Group PC, Dallas, TX.
  • Rs: (NBGLLC, NBFILLC, NBLLC & NBMLLC) Victor A. Machcinski Jr. & Barry S. Gold, Murphy & McGonigle, New York, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Discrimination(Gender & Race)

Short Caption

Anderson v. Edward D Jones

Allegation II

Retaliation

Forum

FINRA

Allegation III

Reformation(U-5)

Docket No

18-01282

Products

NP

Issue Date

2020-01-10

Situs

Chicago

State

IL

Clmd Compensatory

100.0

Total Amt Awarded

Equity

Compensatory Awarded

Equity

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

A broker alleging sexual and racial discrimination settles her claims against Respondent broker-dealer but loses her request for reformation of her Form U-5 record.

Notes

This is a Stipulated Award. Gender and Racial Discrimination case.

Arbitrators

Jonathan B. Gilbert, Esq.

Broker-Dealers Named

Edward D Jones & Company Limited Partnership

Professionals

  • Cs: (KAA) Devin W. Bone, Paesano Akkashian Apkarian PC, Bloomfield Hills, MI.
  • Rs: (EDJ&CLP) Ira G. Rosenstein & Joanne M.F. Wilcomes, Morgan Lewis & Bockius, New York, NY. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Penn v. NEXT Financial

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

19-01509

Products

DirectInvesmts

Issue Date

2020-01-09

Situs

Chicago

State

IL

Clmd Compensatory

218.5

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 All-Public Panel grants Respondent broker-dealer's and broker's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12206 (Six-year Eligibility Rule). The customers' claims involved the alleged over-concentration in high-risk alternative investments including United Development Funding III.

Notes

Pre-Hearing Adjudication -- Full Dismissal. Rescission Requested. All-Public Panel. Arbitrator Remarks -- Explained Award.

Arbitrators

Mark L. Miller, Esq. - Chair; Steven M. Bierig; Raymond P. Buschmann, Esq.

Broker-Dealers Named

Next Financial Group Incorporated

Professionals

  • Cs: Gary S. Menzer, Menzer & Hill, Boca Raton, FL.
  • Rs: (NFGInc & AH) David A. Baugh & Gara M. Seagraves, Kaufman Dolowich & Voluck, Chicago, IL. OSC.

TypeDisp

SmallClms

Allegation I

Suitability

Short Caption

Heroman v. Cetera Investment

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

17-03377

Products

NP

Issue Date

2020-01-06

Situs

New Orleans

State

LA

Clmd Compensatory

33.7

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

An Arbitrator explains why he has imposed sanctions against customer for her counsel's failure to participate in the arbitration process and for her failure to comply with the Arbitrator's orders regarding scheduling of the hearing.

Notes

Pre-Hearing Adjudication -- Full Dismissal. Sanctions imposed. Panel composition issue. Arbitrator Remarks -- Explained Award.

Arbitrators

Frank M. Romano

Broker-Dealers Named

Cetera Investment Services LLC

Professionals

  • Cs: Michael M. Thompson, Taylor Wellons et al., Baton Rouge, LA.
  • Rs: (CISLLC & RRS) Benjamin J. Biard, Winget Spadafora & Schwartzberg, Miami, FL. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Abdallah v. FMSBonds Incorporated

Allegation II

Supervision

Forum

FINRA

Allegation III

Negligence

Docket No

17-01038

Products

*

Issue Date

2020-01-10

Situs

Boston

State

MA

Clmd Compensatory

414.6

Total Amt Awarded

455.0

Compensatory Awarded

375.0

Punitive Damage Awarded

0.0

Attorney Fees Awarded

80.0

* 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 is held liable to two customers for $375,000 in compensatory damages and $80,000 in attorney fees pursuant to Mass. Gen. Laws, ch. 110A § 410(a)(2).

Notes

Sanctions imposed. All-Public Panel. Arbitrator Remarks.

Arbitrators

B. John Dill - Chair; Ronald L. Cheney, Esq.; David B. Beizer, Esq.

Broker-Dealers Named

FMSBonds Incorporated

Professionals

  • Cs: Matthew J. Tuttle, Pinkham Busny LLP, Woburn, MA.
  • Rs: (FMSBInc) Sydney A. Marks & Dennis Richard, Richard & Richard, Miami, FL. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Gale v. Garratt

Allegation II

BreachContract

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

18-03771

Products

Equity

Issue Date

2020-01-03

Situs

Boston

State

MA

Clmd Compensatory

81.0

Total Amt Awarded

74.8

Compensatory Awarded

58.9

Punitive Damage Awarded

0.0

Attorney Fees Awarded

12.5

* 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

Respondent broker is held solely liable to a customer relating to his investment in VirnetX Holding Corporation common stock. Said customer voluntarily dismissed his claims against Respondent broker-dealer with prejudice.

Notes

Rs National Securities Corporation was not assessed any portion of the awarded amount. Rs Geoffrey Garratt was assessed. Arbitrator Remarks.

Arbitrators

James R. Collins, Esq.

Broker-Dealers Named

National Securities Corporation

Professionals

  • Cs: Jeffrey S. Eisenberg, Attorney-at-Law, Huntington, NY.
  • Rs: (NSCorp) Fred N. Knopf, New York, NY. ISC.
  • Rs: (GG) None.

TypeDisp

CustomerMember

Allegation I

Misappropriatn

Short Caption

Remer v. PFS Investments

Allegation II

Supervision

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

18-03519

Products

NP

Issue Date

2020-01-06

Situs

Detroit

State

MI

Clmd Compensatory

329.0

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

In this selling away case, two customers settle their claims against Respondent broker-dealer and broker relating to the allegation that Respondents' employee took and converted funds which Claimants had intended to invest with them. Respondent broker is awarded expungement of this matter from his CRD record.

Notes

This is a Stipulated Award. Selling Away case. All-Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

Tracy L. Allen, Esq. - Chair; Erane C. Washington-Kendrick; Jo A. Irby

Broker-Dealers Named

PFS Investments Incorporated

Professionals

  • Cs: W. Jay Brown, Brown Law PLC, Midland, MI.
  • Rs: (PFSIInc & KKK) Raymond W. Henney, Honigman Miller et al., Detroit, MI. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Alford v. National Planning

Allegation II

Supervision

Forum

FINRA

Allegation III

Negligence

Docket No

17-02420

Products

DirectInvesmts; REITs; VariableAnnuities

Issue Date

2020-01-07

Situs

St. Louis

State

MO

Clmd Compensatory

1663.1

Total Amt Awarded

2629.2

Compensatory Awarded

1583.4

Punitive Damage Awarded

1000.0

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 and a customer trust are awarded nearly $1.6 million in compensatory damages and $1 million in punitive damages pursuant to case law. The customers' claims centered around their investment in two fraudulent promissory notes and unsuitable REITs and variable annuities.

Notes

Big $s. Punitive Damages Awarded. All-Public Panel. Arbitrator Remarks -- Case law cited.

Arbitrators

Albert J. Haller, Esq. - Chair; Philip J. Glick, Esq.; Joshua Eric Lubatkin

Broker-Dealers Named

National Planning Corporation

Professionals

  • Cs: Bruce D. Oakes & Richard B. Fosher, Oakes & Fosher, St. Louis, MO.
  • Rs: (NPCorp) Jason A. Kempf & Kaitlyn Parker, Bryan Cave et al., St. Louis, MO. OSC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Mehler v. MML Investors

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

19-00574

Products

NP

Issue Date

2020-01-06

Situs

Raleigh

State

NC

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 grants Claimant broker's request for reformation of his Form U-5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Michael J. Ahlstrom, Esq.

Broker-Dealers Named

MML Investors Services LLC

Professionals

  • Cs: (DDM) Dochtor Kennedy & Jessica Calloway, AdvisorLaw LLC, Westminster, CO.
  • Rs: (MMLISLLC) William P. Thornton Jr. & Julie Ravis, Stevens & Lee, Reading, PA. OSC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Motherway v. UBS Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

BreachContract

Docket No

17-02799

Products

PromissoryNote

Issue Date

2020-01-07

Situs

Newark

State

NJ

Clmd Compensatory

12000.0

Total Amt Awarded

Equity

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

In this Consolidated Award, a broker alleging violations of the Fair Credit Reporting Act and the Gramm-Leach Billey Act is awarded reformation of his Form U-5 record but loses his request for monetary relief. Claimant broker is also held liable to Respondent broker-dealer for over $1.1 million in damages relating to the amounts due and owing on a promissory note.

Notes

This is a Consolidated Award. Big $s (Counterclaim). Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Robert E. Anderson, Esq. - Chair; Stephen L. Lister, Esq.; Charles A. Crocco, Jr., Esq.

Broker-Dealers Named

UBS Bank USA; UBS Financial Services Incorporated

Professionals

  • Cs: (DPM) None.
  • Rs: (UBSFSInc) Anthony Borrelli & Hunt Ricker, Riker Danzig et al., Morristown, NJ. OSC.
  • Rs: (UBSBnkUS) No-show.

TypeDisp

CustomerMember

Allegation I

UnauthTdg

Short Caption

Jordan v. JP Morgan

Allegation II

Fraud

Forum

FINRA

Allegation III

Forgery

Docket No

17-00001

Products

DirectInvesmts

Issue Date

2020-01-07

Situs

New York

State

NY

Clmd Compensatory

5385.7

Total Amt Awarded

Equity

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 majority-public Panel explains why it has denied in their entirety the customer's claims based upon lack of jurisdiction pursuant to Rule 12200 (no agreement to arbitrate) without prejudice. The Panel did not rule on Respondent broker's request for expungement as it concluded that it does not have jurisdiction to decide on the request.

Notes

Directed Verdict -- Full Dismissal. Majority Public Panel. Arbitrator Remarks -- Explained Award.

Arbitrators

Jill I. Gross, Esq. - Chair; Howard L. Sobel; Martin A. Edelstein, Esq.

Broker-Dealers Named

JP Morgan Chase Bank NA; JP Morgan Private Bank; Chase Bank USA NA; JPMorgan Chase & Company; JP Morgan Securities Incorporated

Professionals

  • Cs: Daniel Kornstein, Emery Celli et al., New York, NY.
  • Rs: (JPMSInc & RHC) Eugene Small, Small Calvo PC, New York, NY. OSC.
  • Rs: (JPMCBnkNA, JPMPBnk, CBUSANA & JPMC&Co) No-show. -- Did not voluntarily submit to arbitration.

TypeDisp

MemberEmployee

Allegation I

BreachContract

Short Caption

Jefferies LLC v. Hood

Allegation II

Forum

FINRA

Allegation III

Docket No

17-00688

Products

NP

Issue Date

2020-01-06

Situs

New York

State

NY

Clmd Compensatory

2750.0

Total Amt Awarded

1248.4

Compensatory Awarded

925.0

Punitive Damage Awarded

Attorney Fees Awarded

263.6

* 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

Respondent broker is held liable to Claimant broker-dealer for damages on its breach of contract claim totaling $1,248,400.

Notes

Big $s. Arbitrator Remarks.

Arbitrators

Anna M. Fanelli, Esq. - Chair; Robert E. Anderson, Esq.; Kenneth J. Diamond, Esq.

Broker-Dealers Named

Jefferies LLC

Professionals

  • Cs: (JLLC) Andrew J. Shapren & Anne E. Kozaul, Buchanan Ingersoll & Rooney, Philadelphia, PA. OSC.
  • Rs: (WSH) Kevin S. Reed & Yari Pierce, Quinn Emanuel et al., New York, NY.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Yang v. Credit Suisse

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

18-02246

Products

NP

Issue Date

2020-01-06

Situs

New York

State

NY

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 explains why he has denied Claimant broker's request for reformation of his Form U-5 record.

Notes

Arbitrator Remarks -- Explained Award.

Arbitrators

Susan C. Lushing, Esq.

Broker-Dealers Named

Credit Suisse Securities (USA) LLC

Professionals

  • Cs: (KY) David E. Robbins, Kaufmann Gildin & Robbins, New York, NY.
  • Rs: (CSSUSALLC) Eric Moran & Scarlett L. Freeman, Epstein Becker & Green, New York, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Orr v. NYPPEX LLC

Allegation II

BreachContract

Forum

FINRA

Allegation III

Negligence

Docket No

18-04264

Products

NP

Issue Date

2020-01-08

Situs

New York

State

NY

Clmd Compensatory

2.5

Total Amt Awarded

2.5

Compensatory Awarded

2.5

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 seeking withheld earned compensation is awarded damages from Respondent broker-dealer and two brokers.

Notes

None.

Arbitrators

Susan A. Romano

Broker-Dealers Named

NYPPEX LLC

Professionals

  • Cs: (MO) Ian Orr, Orr & Brown, White Plains, NY.
  • Rs: (NYPPEXLLC) None.
  • Rs: (LGA & MJS) None.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Zahakos v. Edward Jones

Allegation II

Forum

FINRA

Allegation III

Docket No

19-00169

Products

Annuities

Issue Date

2020-01-08

Situs

New York

State

NY

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 grants a broker's request for expungement of a customer complaint from appearing on his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Sandra J. Mullings, Esq.

Broker-Dealers Named

Edward Jones

Professionals

  • Cs: (JDZ) Michael Bessette, HLBS Law, Westminster, CO.
  • Rs: (EDJ&CLP) Paul A. Yarns, St. Louis, MO. ISC.

TypeDisp

SmallClms

Allegation I

Operations

Short Caption

Lankin v. Interactive Brokers

Allegation II

Forum

FINRA

Allegation III

Docket No

19-00806

Products

Equity

Issue Date

2020-01-07

Situs

New York

State

NY

Clmd Compensatory

50.0

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 loses her claim against Respondent broker-dealer relating to an execution error.

Notes

Please note: This case was administered under the Special Proceeding option for simplified cases.

Arbitrators

Edward W. Morris, Jr., Esq.

Broker-Dealers Named

Interactive Brokers LLC

Professionals

  • Cs: Pro se.
  • Rs: (IBLLC) Mark G. Materna, Washington, DC. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Zhou v. Wilmington Capital

Allegation II

Forum

FINRA

Allegation III

Docket No

19-01704

Products

NP

Issue Date

2020-01-06

Situs

New York

State

NY

Clmd Compensatory

0.0

Total Amt Awarded

Equity

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 broker is awarded expungement of a customer complaint from her CRD record despite being contested by Respondent broker-dealer.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Michael S. Lazan, Esq.

Broker-Dealers Named

Wilmington Capital Securities LLC

Professionals

  • Cs: (SZ) David E. Robbins, Kaufmann Gildin & Robbins, New York, NY.
  • Rs: (WCSLLC) Lawrence R. Gelber, Attorney-at-Law, Brooklyn, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Chan v. Fidelity Brokerage

Allegation II

Forum

FINRA

Allegation III

Docket No

19-02157

Products

Annuities

Issue Date

2020-01-06

Situs

New York

State

NY

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 of a customer complaint from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Patricia Kathleen Costello

Broker-Dealers Named

Fidelity Brokerage Services LLC

Professionals

  • Cs: (CC) Joel M. Everest, Bressler Amery & Ross, Birmingham, AL.
  • Rs: (FBSLLC) Noah D. Sorkin, FMR LLC, Legal Department, Boston, MA. ISC.

TypeDisp

SmallClms

Allegation I

Misreprestn

Short Caption

Nasatir v. UBS Financial

Allegation II

Supervision

Forum

FINRA

Allegation III

BreachContract

Docket No

19-01596

Products

Annuities

Issue Date

2020-01-10

Situs

PP

State

PP

Clmd Compensatory

50.0

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 customer alleging violation of the California Securities Act and fraud loses her claims against Respondent broker-dealer involving her investment in Prudential and TransAmerica annuities.

Notes

None.

Arbitrators

David I. Levine, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: Richard A. D'Amura, D'Amura & Zaidman, Austin, TX.
  • Rs: (UBSFSInc) Anthony J. Borrelli, Riker Danzig et al., Morristown, NJ. OSC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Johnson

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

19-02027

Products

PromissoryNote

Issue Date

2020-01-10

Situs

PP

State

PP

Clmd Compensatory

84.3

Total Amt Awarded

84.3

Compensatory Awarded

84.3

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

Notes

None.

Arbitrators

Michael L. Lyons, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (WFCSLLC) J. Burke McCormick, St. Louis, MO. ISC.
  • Rs: (JEJ) No-show.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Wroblewski

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

19-02705

Products

PromissoryNote

Issue Date

2020-01-10

Situs

PP

State

PP

Clmd Compensatory

10.0

Total Amt Awarded

10.0

Compensatory Awarded

10.0

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 non-appearing broker is held liable for the amount due and owing on a promissory note.

Notes

None.

Arbitrators

Dora M. Lassinger, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (WFCSLLC) Beverly Jo Slaughter, St. Louis, MO. ISC.
  • Rs: (FCW) No-show.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Flynn v. IFS Securities

Allegation II

Supervision

Forum

FINRA

Allegation III

BreachContract

Docket No

18-03763

Products

REITs; Equity

Issue Date

2020-01-09

Situs

Columbia

State

SC

Clmd Compensatory

0.0

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

An All-Public Panel dismisses without prejudice a customer's claims against Respondent broker-dealer pursuant to FINRA Rule 12212 for her failure to comply with the Panel's discovery order. The customer's claims involved her investments in a REIT and securities in Business Development Corp. of America.

Notes

Pre-Hearing Adjudication -- Full Dismissal. Sanctions imposed. Rescission Requested. All-Public Panel.

Arbitrators

Ian S. Greig - Chair; James A. Hayes; Mauricio Arcadier, JD

Broker-Dealers Named

IFS Securities Incorporated; Voya Financial Advisors Incorporated

Professionals

  • Cs: Pro se.
  • Rs: (IFSSInc) Richard E. Brodsky, The Brodsky Law Firm, Coral Gables, FL. OSC.
  • Rs: (VFAInc) Steven E. Mellen, Winget Spadafora & Schwartzberg, New York, NY. OSC.

TypeDisp

CustomerMember

Allegation I

Churning

Short Caption

Kalisek v. Edward Jones

Allegation II

Suitability

Forum

FINRA

Allegation III

Misreprestn

Docket No

18-01476

Products

Annuities

Issue Date

2020-01-03

Situs

Houston

State

TX

Clmd Compensatory

101.6

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 customer settles her claims against Respondent broker-dealer and broker involving two annuity investments. Respondent broker is awarded expungement of this matter from his CRD record.

Notes

This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

Jeffrey R. Jury - Chair; James A. Parker; Malcolm Edwin Whittaker

Broker-Dealers Named

Edward Jones

Professionals

  • Cs: Jason E. Williams, Bissinger Oshman & Williams, Houston, TX.
  • Rs: (EDJ&CLP & RWH) Donald R. Littlefield & Charles Hammaker, Ballard & Littlefield, Houston, TX. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Fisher v. Merrill Lynch

Allegation II

Forum

FINRA

Allegation III

Docket No

19-01832

Products

ARS

Issue Date

2020-01-09

Situs

Dallas

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 is awarded expungement of two customer complaints from her CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

David A. Schuler

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (JAF) Jessica Calloway & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (MLPFSInc) W. Preston Martin, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

MemberEmployee

Allegation I

BreachContract

Short Caption

NEXT Financial v. Barkett

Allegation II

Indemnification

Forum

FINRA

Allegation III

Docket No

18-03812

Products

NP

Issue Date

2020-01-03

Situs

Richmond

State

VA

Clmd Compensatory

100.0

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

Claimant broker-dealer and Respondent broker enter into a Confidential Settlement Agreement relating to the parties' prior executed settlement agreement. The Arbitrator explains why he has denied Respondent broker's request for expungement.

Notes

This is a Stipulated Award. Arbitrator Remarks -- Explained Award.

Arbitrators

Nancy E. Watters, Esq.

Broker-Dealers Named

NEXT Financial Group Incorporated

Professionals

  • Cs: (NEXTFGInc) Todd Ratner, T. Ratner PLLC, Richmond, VA. OSC.
  • Rs: (EMB) James C. Cosby, O'Hagan Meyer PLLC, Richmond, VA.
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