UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2020-09-22

UA 2020-21

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Van Dierendonk v. ProEquities Incorporated

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Misappropriatn

Docket No

19-02711

Products

PrivSecTrans

Issue Date

2020-08-14

Situs

Phoenix

State

AZ

Clmd Compensatory

412.5

Total Amt Awarded

494.2

Compensatory Awarded

207.6

Punitive Damage Awarded

100.0

Attorney Fees Awarded

83.0

* 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

Claimants settle their claims against Respondent broker-dealers leaving Respondent broker solely liable for nearly $500,000 in damages inclusive of $100,000 in punitive damages. Respondent broker is also held liable to one named broker-dealer on its Cross-Claim for indemnification.

Notes

Punitive Damages Awarded. Rescission Requested. Rs ProEquities Incorporated and Transamerica Financial Advisors Incorporated were not assessed any portion of the awarded amount. Rs Narinder Kaur Singh was assessed. Selling Away case. All-Public Panel. Arbitrator Remarks -- Case law cited.

People & Entities

Arbitrators

John H. Fearnow - Chair; W. Michael Kelley, Esq.; Floyd Gerry Hoffman

Broker-Dealers Named

ProEquities Incorporated; Transamerica Financial Advisors Incorporated

Professionals

  • Cs: Jeffrey A. Feldman, Law Offices of J.A. Feldman, San Francisco, CA.
  • Rs: (PEInc) Stephen C. Jackson, Maynard Cooper & Gale, Birmingham, AL. OSC.
  • Rs: (NKS) None.
  • Rs: (TFAInc) Shawn M. McGraw, Koehler Fitzgerald LLC, Cleveland, OH. OSC.

TypeDisp

SmallClms

Allegation I

Misreprestn

Short Caption

Harrenstein v. JP Morgan

Allegation II

Supervision

Forum

FINRA

Allegation III

Docket No

20-01085

Products

NP

Issue Date

2020-08-14

Situs

Phoenix

State

AZ

Clmd Compensatory

31.8

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

In this small claims arbitration, a customer alleging misrepresentation with respect to the process of transferring funds from an IRA account loses her case against Respondent broker-dealer.

Notes

Please Note* This matter proceeded pursuant to Rule 12800 of the Code.

Arbitrators

Walter Steven Schwartz

Broker-Dealers Named

JP Morgan Securities LLC

Professionals

  • Cs: Pro se.
  • Rs: (JPMSLLC) Heidi E. VonderHeide, Ulmer & Berne, Chicago, IL. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Castrova v. First Allied

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

19-03124

Products

REITs

Issue Date

2020-08-10

Situs

Los Angeles

State

CA

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 with prejudice involving her investment in REITs. and voluntarily dismisses her claims against Respondent broker. One Arbitrator dissents with respect to the granting of expungement on behalf of Respondent broker.

Notes

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

Arbitrators

Milton N. Gross - Chair; Robert Rosen (Dissents); Walter Thompson, II

Broker-Dealers Named

First Allied Securities Incorporated

Professionals

  • Cs: Robert B. Volunsky, Weltz Kakos et al., Mineola, NY.
  • Rs: (FASInc & ECY) Elizabeth Lowery, Freeman Mathis & Gary, Hermosa Beach, CA. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

O'Grady v. RM Stark

Allegation II

Supervision

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

19-00968

Products

PrivSecTrans

Issue Date

2020-08-14

Situs

Boca Raton

State

FL

Clmd Compensatory

375.0

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 customer settles her claims against Respondent broker-dealer regarding Respondent broker's recommendation to transfer a portion of her retirement assets from her variable annuities account to Capstone Financial, a company owned and controlled by said broker. Respondent broker is order to indemnify Respondent broker-dealer stemming from the settlement with the customer.

Notes

This is a Stipulated Award. Selling Away case. Rule 12801 default judgment (Cross-Claim). Panel composition issue. Arbitrator Remarks.

Arbitrators

Gary M. Landau, Esq.

Broker-Dealers Named

RM Stark & Company Incorporated; Capstone Financial Group LLC

Professionals

  • Cs: Matthew N. Thibaut, Haselkorn & Thibaut, Palm Beach, FL.
  • Rs: (RMS&CInc) Richard A. D'Amura, D'Amura & Zaidman, Austin, TX. OSC.
  • Rs: (TJM) None.
  • Rs: (CFGLLC) No-show. -- Did not submit to arbitration.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Cebert v. Securities America

Allegation II

Forum

FINRA

Allegation III

Docket No

20-00196

Products

VariableAnnuities

Issue Date

2020-08-18

Situs

Orlando

State

FL

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 three customer complaints from appearing on his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Mauricio Arcadier, JD

Broker-Dealers Named

Securities America Incorporated

Professionals

  • Cs: (DLC) Harris Freedman, HLBS Law, Westminster, CO.
  • Rs: (SAInc) Tyler Schubauer, La Vista, NE. ISC.

TypeDisp

SmallClms

Allegation I

Misreprestn

Short Caption

Ritota v. Inman

Allegation II

Negligence

Forum

FINRA

Allegation III

Supervision

Docket No

20-00888

Products

Equity

Issue Date

2020-08-11

Situs

Boca Raton

State

FL

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

In this small claims arbitration, a customer loses his case against two Respondent brokers after alleging he was unable to perform trades at the outset of the Coronavirus pandemic outbreak after he deposited a 3000 share stock certificate into his account.

Notes

Please Note* This matter proceeded pursuant to Rule 12800 of the Code.

Arbitrators

Carl Henry Perdue

Broker-Dealers Named

None.

Professionals

  • Cs: Pro se.
  • Rs: (MTI & JRV) Neil S. Baritz, Baritz & Colman, Boca Raton, FL.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Lopez v. LPL Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

19-02984

Products

NP

Issue Date

2020-08-11

Situs

Chicago

State

IL

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 reformation of defamatory language from appearing on her Form U5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Gregory G. Gocek

Broker-Dealers Named

LPL Financial LLC

Professionals

  • Cs: (PL) Dochtor Kennedy & Erica Harris, AdvisorLaw LLC, Westminster, CO.
  • Rs: (LPLFLLC) Jon D. Kaplon, Boston, MA. ISC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Braun v. TD Ameritrade

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03600

Products

Equity

Issue Date

2020-08-14

Situs

Indianapolis

State

IN

Clmd Compensatory

401.0

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 All-Public Panel grants Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12206 (Six-year Eligibility Rule). The customer's claim involved his investment in Patriot Coal Corporation stock.

Notes

Pre-Hearing Adjudication -- Full Dismissal. All-Public Panel. Arbitrator Remarks.

Arbitrators

Raymond M. Kirtley - Chair; Michael J. Meeusen, Esq.; Jill Elise Vestal

Broker-Dealers Named

TD Ameritrade Incorporated

Professionals

  • Cs: Pro se.
  • Rs: (TDAInc) Amanda Helm Wright, Omaha, NE. ISC.

TypeDisp

MemberEmployee

Allegation I

BreachContract

Short Caption

Oppenheimer & Company v. Hume

Allegation II

Forum

FINRA

Allegation III

Docket No

19-03669

Products

NP

Issue Date

2020-08-14

Situs

Boston

State

MA

Clmd Compensatory

19.8

Total Amt Awarded

19.8

Compensatory Awarded

19.8

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 is awarded damages on its breach of Retirement Agreement and Non-Retirement Agreement against Respondent broker. Respondent broker loses his Counterclaim for unpaid expense allowance.

Notes

Please Note* This matter proceeded pursuant to Rule 13800 of the Code. Discrimination case.

Arbitrators

Catherine M. Gallagher

Broker-Dealers Named

Oppenheimer & Company Incorporated

Professionals

  • Cs: (O&CInc) John McGuire, New York, NY. ISC.
  • Rs: (DGH) John E. Sutherland, Brickley/Sears PA, Boston, MA.

TypeDisp

SmallClms

Allegation I

FailToObey

Short Caption

Zunshine v. Alight Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

20-00974

Products

MutualFunds

Issue Date

2020-08-13

Situs

Boston

State

MA

Clmd Compensatory

5.6

Total Amt Awarded

5.6

Compensatory Awarded

5.6

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

In this small claims arbitration, Respondent broker-dealer is held liable to a customer for failure to execute a trade relating to the Fidelity Focused High Income Fund.

Notes

Please Note* This matter proceeded pursuant to Rule 12800 of the Code.

Arbitrators

Jeffrey P. Petrucelly, Esq.

Broker-Dealers Named

Alight Financial Solutions LLC

Professionals

  • Cs: Pro se through Zach Zunshine, Boston, MA.
  • Rs: (AFSLLC) Matthew Chotkowski, Charlotte, NC. ISC.

TypeDisp

SmallClms

Allegation I

Churning

Short Caption

Youngren v. Allied Millennial

Allegation II

Suitability

Forum

FINRA

Allegation III

Supervision

Docket No

20-00128

Products

*

Issue Date

2020-08-11

Situs

Augusta

State

ME

Clmd Compensatory

49.4

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

In this small claims arbitration, a customer alleging excessive trading loses his case against a Respondent broker-dealer and group of brokers.

Notes

Please Note* This matter proceeded pursuant to Rule 12800 of the Code.

Arbitrators

John James McGovern, Jr., Esq.

Broker-Dealers Named

Allied Millennial Partners LLC

Professionals

  • Cs: Steven G. Legum, Carlucci & Legum, Mineola, NY.
  • Rs: (AMPLLC, MM, RBC & JP) Robert M. Bursky, Attorney-at-Law, Melville, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Greenstone v. Merrill Lynch

Allegation II

Forum

FINRA

Allegation III

Docket No

19-03288

Products

NP

Issue Date

2020-08-13

Situs

Newark

State

NJ

Clmd Compensatory

0.1

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 a customer complaint from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Martin R. Cramer

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (MG) Patrick R. Mahoney, The Law Offices of P.R. Mahoney, Beverly Hills, CA.
  • Rs: (MLPFSInc) W. Preston Martin, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Scalese v. FSC Securities

Allegation II

Forum

FINRA

Allegation III

Docket No

20-00712

Products

NP

Issue Date

2020-08-13

Situs

Newark

State

NJ

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 awarded Claimant broker expungement of a customer complaint from appearing on his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Joan M. Traub, Esq.

Broker-Dealers Named

FSC Securities Corporation

Professionals

  • Cs: (CPS) Dochtor Kennedy & Michelle Atlas, AdvisorLaw LLC, Westminster, CO.
  • Rs: (FSCSCorp) James V. Noblett, Advisor Group Incorporated, Jersey City, NJ. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Grimm v. Allied Millennial

Allegation II

Forum

FINRA

Allegation III

Docket No

19-02883

Products

Equity; Margin

Issue Date

2020-08-14

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

A registered representative is granted expungement of three customer complaints from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Robert E. Anderson, Esq.

Broker-Dealers Named

Allied Millennial Partners LLC

Professionals

  • Cs: (TEG) Irwin Weltz, Weltz Kakos et al., Mineola, NY.
  • Rs: (AMPLLC) John Parmigiani, New York, NY. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Skabry v. Berthel Fisher

Allegation II

Forum

FINRA

Allegation III

Docket No

20-00494

Products

REITs

Issue Date

2020-08-12

Situs

Buffalo

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

A broker is granted expungement of a customer complaint from appearing on his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Tracy L. Allen, Esq.

Broker-Dealers Named

Berthel Fisher & Company Financial Services Incorporated

Professionals

  • Cs: (ALS) Dochtor Kennedy & Michael O'Gara, AdvisorLaw LLC, Westminster, CO.
  • Rs: (BF&CFSInc) Shelley R. Davenport, Cedar Rapids, IA. ISC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Kandkhorov

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

20-00573

Products

PromissoryNote

Issue Date

2020-08-11

Situs

New York

State

NY

Clmd Compensatory

76.1

Total Amt Awarded

76.1

Compensatory Awarded

76.1

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

Respondent broker is held liable for the amounts due and owing on two promissory note agreements.

Notes

None.

Arbitrators

Mitchell Regenbogen

Broker-Dealers Named

Wells Fargo Advisors Financial Network LLC

Professionals

  • Cs: (WFAFNLLC) Jessica Klein & T.R. Bynum, St. Louis, MO. ISC.
  • Rs: (GK) Jay L. Hack, Gallett Dreyer & Berkey, New York, NY.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Mastilak v. Wells Fargo

Allegation II

Forum

FINRA

Allegation III

Docket No

20-00397

Products

Annuities

Issue Date

2020-08-09

Situs

Pittsburgh

State

PA

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 granted expungement of a customer complaint from her CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Catherine Stewart, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (JFM) Frances Menzer & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (WFCSLLC) Deirdre C. Wolff, Wells Fargo Law Department, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Pearson v. Parkland Securities

Allegation II

Forum

FINRA

Allegation III

Docket No

20-00045

Products

NP

Issue Date

2020-08-11

Situs

Salt Lake City

State

UT

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 registered representative is awarded expungement of a FINRA arbitration from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Terry M. Lloyd, CPA, CFA

Broker-Dealers Named

Parkland Securities LLC

Professionals

  • Cs: (TLP) Dochtor Kennedy & Jessica Calloway, AdvisorLaw LLC, Westminster, CO.
  • Rs: (PSLLC) Randolph F. Pistor II, Ann Arbor, MI. ISC.
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