* 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 intra-industry dispute, Claimant broker-dealer and its former employee settle their respective claims and Counterclaims against each other involving the amounts due and owing on four promissory notes as well as Respondent broker's alleged wrongful termination.
Notes
This is a Stipulated Award.
People & Entities
Arbitrators
Val D. Hornstein, Esq. - Chair; Thomas Arthur Cohen; Linda P. Drucker, Esq.
Broker-Dealers Named
Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney Financing LLC
Professionals
Cs: (MSSBLLC & MSSBFLLC) Shannon L. McDougald, McDougald Law Group, Mercer Island, WA. OSC.
Rs: (NSG) Bryan T. Forman, Forman Law Firm, Austin, TX.
* 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 partially settles all of his claims asserted against Respondent broker-dealer (including claims of racial discrimination) with the exception of his requests for reformation of his Form U5 record and expungement of a customer complaint from his CRD record, both of which were granted by the Panel.
Notes
Please Note* This matter was decided by an All-Public Panel pursuant to Rule 13802 of the Code. Racial Discrimination case. Arbitrator Remarks -- Expungement and Reformation U-5 granted.
Arbitrators
Kirtley M. Thiesmeyer, Esq. - Chair; Jonathan D. Gereige; Steve S. Baghoomian, Esq.
Broker-Dealers Named
Edward Jones
Professionals
Cs: (ZFZ) Montgomery G. Griffin, Law Offices of M.G. Griffin, Newport Beach, CA.
Rs: (EDJ&CLP) Elizabeth Lindh & Teresa J. Thong, 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
In this small claims arbitration, an Arbitrator explains in detail why he has decided to deny a customer's claims against Respondent broker-dealer finding that he did not meet his burden of proof in this case. The customer's claim sought relief for interest charged upon his Margin Account that he alleged was not informed about.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Arbitrator Remarks -- Explained Award.
Arbitrators
Ronald Chun
Broker-Dealers Named
E*Trade Securities LLC
Professionals
Cs: Pro se.
Rs: (ETSLLC) Meredith Hoffman, Menlo Park, 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
In this small claims arbitration, an Arbitrator explains in detail why he has decided to deny the customer's case finding that said customer did not cite any contract breaches, regulatory violations or other bases for relief in his favor against Respondent broker-dealer.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Arbitrator Remarks -- Explained Award.
Arbitrators
Michael Jeffrey Norton, Esq.
Broker-Dealers Named
Webull Financial LLC
Professionals
Cs: Pro se.
Rs: (WFLLC) Benjamin D. Cooper, New York, NY. 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 Panel awards Claimant broker punitive damages in the form of attorney fees and costs pursuant to case law after finding that Respondents made false and defamatory statements in his Form U5 record and that their actions showed a reckless disregard for the rights of Claimant. As such, Claimant broker is also awarded reformation of his Form U5 record.
Notes
Punitive Damages Awarded. Arbitrator Remarks -- Reformation U-5 granted. Case law cited.
Arbitrators
John J. Mager, Esq. - Chair; John Michael Bergin; Benjamin H. Green
Broker-Dealers Named
Buell Securities Corporation
Professionals
Cs: (JAG) Michael T. McCormack & Amy E. Markim, O'Sullivan McCormack et al., Glastonbury, CT.
Rs: (BSCorp & CDB) Richard Slavin, Cohen & Wolf, Westport, CT. OSC and Marc J. Herman, Cohen & Wolf, Bridgeport, CT. 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 he was locked out of his account as a result of a data breach and that his stocks were liquidated without his consent loses his case.
Notes
Majority Public Panel.
Arbitrators
Leon Fox, JD - Chair; Shimon Benyamin Kahan, Esq.; Scott Stauffer
* 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 investor alleging that his account was churned and that Respondents failed to build him a well-managed diversified portfolio loses his case as a sanction for his failure to comply with the Panel's Order regarding the production of discovery. Said investor is also held liable to Respondents for $5,000 in the form of attorney fees as a monetary sanction pursuant to FINRA Rule 12212.
Notes
Pre-Hearing Adjudication -- Full Dismissal. Sanctions imposed. All-Public Panel.
Arbitrators
Lynn Hirschfeld Brahin, Esq. - Chair; Julius Z. Frager; Jane Cohen
Broker-Dealers Named
Arive Capital Markets
Professionals
Cs: Brian J. Davis, B.J. Davis PC, Garden City, NY.
Rs: (ACMkts & LCF) Anthony Varbero, Joseph Mure Jr. & Associates, Brooklyn, 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
An Arbitrator grants Claimant broker's request for reformation of her Form U5 record but also explains why she has denied said broker's request for reformation of another occurrence from her Form U5, finding that she did not met her burden of proof of establishing that the occurrence is defamatory in nature.
* 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 Claimant broker alleging wrongful termination is granted both his requests for reformation of his Form U5 record and expungement of a customer complaint from appearing on his CRD record along with compensatory damages. However, one Arbitrator dissented from his fellow panelists and would have found in favor of Respondent broker-dealer.
Notes
Big $s. Arbitrator Remarks -- Expungement and Reformation U-5 granted. Arbitrator dissents with explanation.
Arbitrators
Jay Alan Kranis - Chair; Howard W. Hirschhorn; William Travis
Broker-Dealers Named
Fidelity Brokerage Services LLC; Fidelity Personal and Workplace Advisors
* 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 for unpaid commissions and improper wage deductions is awarded $1.2 million in compensatory damages as well as attorney fees and costs and reformation of defamatory information from her Form U5 record. Respondents lose their Counterclaim alleging unfair competition and raiding.
Notes
Big $s. Raiding case. Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Joan Maxine Secofsky - Chair; Joseph J. Arata, Esq.; Jay F. Frascella
Broker-Dealers Named
De Paola Trading Incorporated
Professionals
Cs: (TFD) Robert A. Giacovas & Anna Pia D. Felix, Lazare Potter et al., New York, NY.
Rs: (DPTInc & PJD) Richard L. Herzfeld, R.L. Herzfeld 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
A customer trust settles its case against Respondent broker-dealer involving the purchase of Intercontinental Exchange Group Inc. stock. Non-Party broker is awarded expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.
* 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 her purchase of Puerto Rican municipal bonds including Puerto Rico Infrastructure Financing Authority bonds. A majority of the Panel denied two Non-Party broker's requests for expungement of this matter from their CRD records, while awarding another Non-Party said relief despite the objection of the customer.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted. Arbitrator dissents with explanation.
Arbitrators
Lorrie E. Whitfield - Chair; Cheryl H. Agris, PhD; John Warner Lowe, Jr. (Dissents)
Broker-Dealers Named
David Lerner Associates Incorporated
Professionals
Cs: Jeffery Erez, Erez Law PLLC, Miami, FL.
Rs: (DLAInc) Michael G. Shannon & Riccardo DeBari & Anna K. Stark, Thompson Hine 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
Two customers alleging that they were unsuitably placed in illiquid alternative investments and REITs settle their case against Respondent broker-dealer. Non-Party registered rep is granted expungement of this matter from her CRD record.
Notes
This is a Stipulated Award. Rescission Requested. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Mitchell Regenbogen - Chair; Alfreida B. Kenny, Esq.; Charlane Brown
Broker-Dealers Named
Hornor Townsend & Kent LLC
Professionals
Cs: Michael C. Bixby & Peter J. Mougey, Levin Papantonio et al., Pensacola, FL.
Rs: (HT&KLLC) Paula D. Shaffner, Stradley Ronon et al., Philadelphia, PA. 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 Panel explains in great detail why it has decided to hold a non-appearing registered rep liable to Claimant for over $1.6 million in damages inclusive of punitive damages after finding said registered rep acted in an egregious manner and made intentional misrepresentations to Claimant involving her investments in exchange traded funds.
Notes
Big $s. Rs TD Ameritrade Clearing Incorporated, TD Ameritrade Incorporated, TD Ameritrade Investment Management LLC and Ultimate Financial Investments LLC were not assessed any portion of the awarded amount. Rs Bridget A. Fernandez was assessed. Directed Verdict -- Party Dismissal. Punitive Damages Awarded. Damage Anomaly. Clrg BD dispute. Majority Public Panel. Panel composition issue. Arbitrator Remarks -- Explained Award. Case law cited.
Arbitrators
Donald S. Bauman, Esq. - Chair; George Aleman; Andrew S. Walsh, JD
* 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 pension plan seeking $10 million in damages relating to its investments in various securities including Skybridge Multi-Advisor Hedge Fund Portfolios settles its case against Respondent broker-dealer. Two Non-Party brokers' requests for expungement of this matter from their respective CRD records are denied.
Notes
This is a Stipulated Award. Majority Public Panel.
Arbitrators
Patrick Richard Westerkamp, Esq. - Chair; John James McGovern, Jr., Esq.; Mary C. Kelleher
Broker-Dealers Named
Janney Montgomery Scott LLC
Professionals
Cs: Jacob H. Zamansky & Edward H. Glenn Jr. & Samuel E. Bonderoff, Zamansky LLC, New York, NY.
Rs: (JMSLLC) Paula D. Shaffner, Stradley Ronon et al., Philadelphia, PA. 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 explains why she has decided to award Claimant broker reformation of his Form U5 record after finding that the information contained in it was inaccurate and false, specifically the allegation that he misused Automated Flexible Grid Funds.
Rs: (MSSBLLC) Igor V. Stadnik & Ashley E. Impellitteri, Keesal Young & Logan, Seattle, WA. OSC.
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