* 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.
* 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.
* 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.
* 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.
* 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.
* 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.
* 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.
* 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).
* 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.
* 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.
* 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.
* 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.
* 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.
* 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.
* 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.
* 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.
* 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.
Any attempt to use robotics to download Awards posted on this WebSite or to gain access to the Awards on this WebSite in contravention of the Terms of Use Agreement is an unauthorized use, an abuse of the privileges extended to users of this WebSite, and, in our view, a violation of federal law.
