UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2019-05-23

2019-21

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

CustomerMember

Allegation I

Churning

Short Caption

Goldner v. TD Ameritrade

Allegation II

Suitability

Forum

FINRA

Allegation III

Supervision

Docket No

17-02452

Products

Options

Issue Date

2019-05-07

Situs

Los Angeles

State

CA

Clmd Compensatory

158.4

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

Two Co-Trustees alleging elder abuse, churning and failure to adequately supervise, among other things, settle their claim with Respondent broker-dealer and brokers. The two named brokers are awarded expungement of this matter from their respective CRD records.

Notes

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

People & Entities

Arbitrators

Kendall C. Reed, Esq. - Chair; Stephen Howard Marcus

Broker-Dealers Named

TD Ameritrade Incorporated; Domari Wealth Management; Kestra Private Wealth Management Services LLC; Washington Wealth Management

Professionals

  • Cs: Mark S. Novak, Law Offices of M.S. Novak, Encino, CA.
  • Rs: (TDAInc) Simeon M. Schopf, Senior Litigation Counsel, Columbia, MD. ISC.
  • Rs: (BMD & JAT) Richard A. D'Amura, D'Amura & Zaidman, West Hollywood, CA.
  • Rs: (DWMgmt, KPWMSLLC & WWMgmt) No-show. -- Did not voluntarily submit to arbitration.

TypeDisp

CustomerMember

Allegation I

Fraud

Short Caption

Dominick v. Ameriprise Financial

Allegation II

Supervision

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

18-00853

Products

PrivSecTrans

Issue Date

2019-05-08

Situs

Los Angeles

State

CA

Clmd Compensatory

1856.6

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 group of customers lose their claims relating to Rs alleged concealment of information regarding its former advisor and his alleged fraudulent promissory note scheme, which caused losses for Cs.

Notes

Majority Public Panel.

Arbitrators

Kirtley M. Thiesmeyer, Esq. - Chair; Mary M. O'Neil; Linda L. Drummond

Broker-Dealers Named

Ameriprise Financial Services Incorporated

Professionals

  • Cs: John S. Chapman & Philip Vuanov, Chapman Albin LLC, Cleveland, OH.
  • Rs: (AFSInc) Timothy N. Will, Albert & Will, Torrance, CA. OSC. and Howard Klausmeier, Troy, MI. ISC.

TypeDisp

EmployeeMember

Allegation I

Discrimination(Race)

Short Caption

Vaquera v. National Planning

Allegation II

Reformation(U-5)

Forum

FINRA

Allegation III

Defamation

Docket No

18-01826

Products

NP

Issue Date

2019-05-08

Situs

Los Angeles

State

CA

Clmd Compensatory

2500.0

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 alleging racial discrimination loses his claim for monetary damages but is awarded expungement of his Form U-5 record.

Notes

Sanctions imposed. Racial Discrimination case. Whistleblowing case. Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Stephen Howard Marcus - Chair; Daniel A. Seiver; Jack R. Goetz

Broker-Dealers Named

National Planning Corporation

Professionals

  • Cs: (PRV) None.
  • Rs: (NPCorp) Elizabeth Lowery, Freeman Mathis & Gary, Seal Beach, CA. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Shusterman v. Sagepoint Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03214

Products

DirectInvesmts; RealEstate

Issue Date

2019-05-06

Situs

San Diego

State

CA

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 his CRD record involving real estate investments.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Kevin K. Forrester, Esq.

Broker-Dealers Named

Sagepoint Financial Incorporated

Professionals

  • Cs: (PMS) Frances Menzer, HLBS Law, Westminster, CO.
  • Rs: (SFInc) Bradley Fishman, Jersey City, NJ. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Lama v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

19-00421

Products

Derivatives

Issue Date

2019-05-09

Situs

Los Angeles

State

CA

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 wins expungement of a customer complaint from her CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Kirtley M. Thiesmeyer, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (YDL) Consuelo A. Mejer, Bressler Amery & Ross, New York, NY.
  • Rs: (UBSFSInc) Craig Vollono, Weehawken, NJ. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Daniels v. Wells Fargo

Allegation II

Defamation

Forum

FINRA

Allegation III

Compensatn

Docket No

16-02742

Products

NP

Issue Date

2019-05-09

Situs

Boca Raton

State

FL

Clmd Compensatory

379.0

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 loses his request for compensation but is awarded Reformation of his Form U-5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Allen Kilik, Esq. - Chair; Sidney Turner; Jon Stanley Spisiak

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: (CDD) None.
  • Rs: (WFALLC) Stuart D. Roberts & Lisabeth F. Howland, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Thomas v. Harbor Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-02031

Products

Equity; MutualFunds

Issue Date

2019-05-06

Situs

Tampa

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 wins expungement of a customer complaint from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Richard S. Zaifert, Esq.

Broker-Dealers Named

Harbor Financial Services LLC

Professionals

  • Cs: (BWT) Eric Litow, Of Counsel & Owen Harnett, HLBS Law, Westminster, CO.
  • Rs: (HFSLLC) Marc S. Whitehead, President & Chief Compliance Officer, Mobile, AL. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Oley v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03476

Products

Derivatives

Issue Date

2019-05-08

Situs

Boca Raton

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

An Arbitrator awards Claimant broker expungement of a customer complaint from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

James W. Geiger, Esq.

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (BCO) Harris Freedman, HLBS Law, Westminster, CO.
  • Rs: (UBSFSInc) Joelle A. Simms, Bressler Amery & Ross, Fort Lauderdale, FL. OSC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Mascarenhas v. JP Morgan

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

18-01879

Products

NP

Issue Date

2019-05-10

Situs

Chicago

State

IL

Clmd Compensatory

740.0

Total Amt Awarded

29.9

Compensatory Awarded

0.0

Punitive Damage Awarded

0.0

Attorney Fees Awarded

28.9

* 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 detail why they recommended expungement of the defamatory information appearing on Claimant's Form U-5 record. Claimant broker is also awarded damages including attorney fees and costs.

Notes

Arbitrator Remarks -- Reformation U-5 granted. Explained Award.

Arbitrators

James J. Stamos, Esq. - Chair; Victoria Wolf; Nancy L. Hendrickson, Esq.

Broker-Dealers Named

JP Morgan Securities LLC

Professionals

  • Cs: (RM) Marc D. Schifanelli & Gordana Schifanelli, Schifanelli Law LLP, Annapolis, MD.
  • Rs: (JPMSLLC) Jeffrey S. Dunlap & Alyson Terrell, Ulmer & Berne, Cleveland, OH. OSC. and Scott R. Koch, JP Morgan Chase Bank NA, Chicago, IL. ISC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Lott v. Wells Fargo

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

18-01389

Products

MuniSecs

Issue Date

2019-05-09

Situs

New Orleans

State

LA

Clmd Compensatory

75.0

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 with Respondent broker-dealer relating to her investment in Puerto Rican municipal bonds. Non-Party broker is awarded expungement of this matter from his CRD record.

Notes

This is a Stipulated Award. Clrg BD dispute. Arbitrator Remarks -- Expungement granted. It appears from the unnamed broker's CRD record that this matter settled for $13,750.

Arbitrators

Allan R. Lazor, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: Jonathan Kurta, Fitapelli Kurta LLP, New York, NY.
  • Rs: (WFCSLLC) Patricia E. Cowart, Wells Fargo Law Department, Fort Lauderdale, FL. ISC.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Childs v. Silber Bennett

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-03936

Products

NP

Issue Date

2019-05-06

Situs

Minneapolis

State

MN

Clmd Compensatory

57.1

Total Amt Awarded

57.1

Compensatory Awarded

57.1

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

A broker alleging breach of Independent Contractor Agreement and seeking compensation is awarded damages from non-appearing Respondent broker-dealer.

Notes

None.

Arbitrators

Peter N. Thompson

Broker-Dealers Named

Silber Bennett Financial Incorporated

Professionals

  • Cs: (BDC) None.
  • Rs: (SBFInc) No-show.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Barlow v. Morgan Keegan

Allegation II

Misreprestn

Forum

FINRA

Allegation III

BreachContract

Docket No

17-01630

Products

Equity

Issue Date

2019-05-03

Situs

Jackson

State

MS

Clmd Compensatory

1123.0

Total Amt Awarded

1790.0

Compensatory Awarded

1123.0

Punitive Damage Awarded

200.0

Attorney Fees Awarded

422.0

* 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

Two broker-dealers and a broker are held jointly and severally liable to a group of customers for almost $1.8 million in damages, (inclusive of punitive damages) relating to their investment in CanWest Petroleum Company and Ridgeway Petroleum Inc. Respondents lose their Counterclaim seeking injunctive relief against Claimants for the alleged misuse of trade secrets in this matter which had been produced in another matter under a confidentiality order.

Notes

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

Arbitrators

Theodore Haynes - Chair; Mark A. Myers, Esq.; James L. Warren, III

Broker-Dealers Named

Morgan Keegan & Company Incorporated; Raymond James & Associates Incorporated

Professionals

  • Cs: Judson M. Lee & Robert V. Greenlee, J.M. Lee PLLC, Madison, MS.
  • Rs: (MK&CInc, LBP & RJ&AInc) Terry R. Weiss & Stephanie Wayco, DLA Piper LLP, Atlanta, GA. OSC.

TypeDisp

CustomerMember

Allegation I

Misappropriatn

Short Caption

Atkins v. Pershing LLC

Allegation II

Fraud

Forum

FINRA

Allegation III

Supervision

Docket No

18-00651

Products

CDs

Issue Date

2019-05-07

Situs

Jackson

State

MS

Clmd Compensatory

6148.8

Total Amt Awarded

1430.0

Compensatory Awarded

1430.0

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, group of customers is awarded over $1 million in damages relating to their allegations that Respondent broker-dealer aided and abetted Mr. S, a broker who allegedly ran a Ponzi scheme, by acting as custodian and a clearing firm for Mr. S, and wiring hundreds of millions of dollars to Mr. S wholly owned off-shore bank in Antigua and to other controlled accounts in the US, Canada and Great Britain.

Notes

This is a Consolidated Award. Big $s. Rescission Requested. Clrg BD dispute. All-Public Panel. Arbitrator Remarks.

Arbitrators

Langfred W. White, Esq. - Chair; Mauricio Arcadier, JD; Avery B. Goodman, Esq.

Broker-Dealers Named

Pershing LLC

Professionals

  • Cs: Charles E. Scarlett & Scott D. Hirsch, Scarlett & Hirsch, Boca Raton, FL. and Donald L. Ferguson, Attorney-at-Law, New Portland, ME.
  • Rs: (PLLC) Jeffrey J. Chapman & Thomas M. Farrell, McGuire Woods LLP, New York, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Schmadeke v. MML Investors

Allegation II

Defamation

Forum

FINRA

Allegation III

WrongTerm

Docket No

18-01174

Products

NP

Issue Date

2019-05-08

Situs

Omaha

State

NE

Clmd Compensatory

192.6

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

A broker alleging wrongful termination as a result of his being unable to pay an outstanding medical bill within one day of receiving written notice to do so, settles his claims with Respondent broker-dealer and Respondent broker. He is also awarded Reformation of his Form U-5 record.

Notes

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

Arbitrators

John R. Loss, Esq. - Chair; Lynn Hirschfeld Brahin, Esq.; Steven Michael Vokal

Broker-Dealers Named

MML Investors Services LLC

Professionals

  • Cs: (TJS) Dennis G. Peatrowsky, Vincent & Peatrowsky Law Offices, Omaha, NE.
  • Rs: (MMLISLLC) William P. Thornton Jr., Stevens & Lee, Reading, PA. OSC.
  • Rs: (DJM) J. David Jackson, Dorsey & Whitney, Minneapolis, MN.

TypeDisp

CustomerMember

Allegation I

BreachContract

Short Caption

Fuchs v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

17-03428

Products

Equity

Issue Date

2019-05-08

Situs

Newark

State

NJ

Clmd Compensatory

119.8

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 All-Public Panel denies customers' claims relating to their investment in common stock.

Notes

All-Public Panel.

Arbitrators

Robert E. Anderson, Esq. - Chair; Edward W. Morris, Jr., Esq.; Sylvia Kaminsky, JD

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: Brad S. Maistrow, B.S. Maistrow PC, New York, NY.
  • Rs: (UBSFSInc) Anthony J. Borrelli, Riker Danzig et al., Morristown, NJ. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Taylor v. Cetera Advisor

Allegation II

Forum

FINRA

Allegation III

Docket No

18-03725

Products

NP

Issue Date

2019-05-08

Situs

Newark

State

NJ

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

Claimant broker loses her request for expungement of a customer complaint from her CRD record.

Notes

None.

Arbitrators

Morton S. Bunis, Esq.

Broker-Dealers Named

Cetera Advisor Networks LLC

Professionals

  • Cs: (DHT) Matthew I. Penfield, Bressler Amery & Ross, Birmingham, AL.
  • Rs: (CANLLC) Jeremy Carr, Cetera Financial Group, El Segundo, CA. ISC.

TypeDisp

MemberCustomer

Allegation I

DebitBalance

Short Caption

Charles Schwab v. Sanduski

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-01513

Products

Equity

Issue Date

2019-05-09

Situs

Las Vegas

State

NV

Clmd Compensatory

418.5

Total Amt Awarded

418.5

Compensatory Awarded

418.5

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 Panel holds Respondent customer liable to Claimant broker-dealer for damages relating to an unsecured debit balance in his Schwab One Brokerage Account. Two of the Arbitrators provide post-award discussion and the Arbitrator Chair dissents with respect to the amount of compensatory damages awarded to Claimant.

Notes

All-Public Panel. Arbitrator Remarks -- Arbitrator dissents with explanation.

Arbitrators

Larry Edmonson - Chair (Dissents); Sheila Grinell; Roger A. Geddes

Broker-Dealers Named

Charles Schwab & Company Incorporated

Professionals

  • Cs: (CS&CInc) Joseph L. Siders, Chicago, IL. ISC.
  • Rs: Pro se.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Velez De Jesus v. UBS Financial

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

16-02881

Products

MutualFunds

Issue Date

2019-05-09

Situs

New York

State

NY

Clmd Compensatory

800.0

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

Two customers settle their claims against Respondent broker-dealer involving their investments in Puerto Rico bond funds. Non-Party broker is awarded expungement of this matter from his CRD record.

Notes

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

Arbitrators

Wayne I. Harris - Chair; Gerald H. Grayson; Bernard Lieberman

Broker-Dealers Named

UBS Financial Services Incorporated of Puerto Rico

Professionals

  • Cs: August Iorio, Zamansky LLC, New York, NY.
  • Rs: (UBSFSIncPR) Roberto Quinones, McConnell Valdes LLC, San Juan, PR. OSC.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Lerner v. Credit Suisse

Allegation II

BreachContract

Forum

FINRA

Allegation III

Misappropriatn

Docket No

17-00057

Products

NP

Issue Date

2019-05-07

Situs

New York

State

NY

Clmd Compensatory

3600.0

Total Amt Awarded

6674.8

Compensatory Awarded

2787.3

Punitive Damage Awarded

Attorney Fees Awarded

250.0

* 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

Two brokers are awarded almost $7 million in damages on their deferred compensation claim (inclusive of liquidated damages) and are granted Reformation of their Form U-5 records. Respondent broker-dealer's Counterclaim request for declaratory judgment is denied.

Notes

Big $s. Liquidated Damages Awarded. Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Sandra J. Mullings, Esq. - Chair; Martin Izaak; Douglas F. Stone, Esq.

Broker-Dealers Named

Credit Suisse Securities (USA) LLC

Professionals

  • Cs: (JTL & ASW) Barry Lax & Sandra Lahens & Robert R. Miller, Lax & Neville, New York, NY.
  • Rs: (CSSUSALLC) Kenneth Kelly & Victoria Sloan Lin, Epstein Becker & Green, New York, NY. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Lieber v. Morgan Stanley

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Negligence

Docket No

17-02736

Products

*

Issue Date

2019-05-07

Situs

New York

State

NY

Clmd Compensatory

5000.0

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

Customers seeking $5 million in compensatory damages for alleged excessive trading with respect to transactions in accounts - from 2011 to 2016 - settle their claims against Respondent broker-dealer and registered representatives. Named registered representative loses his request for expungement of this matter from his CRD record.

Notes

This is a Stipulated Award. All-Public Panel. According to broker's CRD record, this matter settled for $1.2 million.

Arbitrators

David S. Billet, Esq. - Chair; Abigail R. Levy; Richard M. Gray

Broker-Dealers Named

Morgan Stanley & Company LLC

Professionals

  • Cs: Sam Schwartz, Eiseman Levein et al., New York, NY.
  • Rs: (MS&CLLC & DCT) William D. Briendel, Greenberg Traurig LLP, White Plains, NY. OSC.
  • Rs: (MFP) David E. Robbins, Kaufmann Gildin & Robbins, New York, NY.
  • Rs: (JNC) None.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Reuben v. Stifel Nicolaus

Allegation II

Forum

FINRA

Allegation III

Docket No

18-01354

Products

NP

Issue Date

2019-05-08

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

A broker seeking expungement of six customer complaints from his CRD record is only awarded expungement of one. The Arbitrator explains why he denied the other five expungement requests.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

Kent L. Benziger, Esq.

Broker-Dealers Named

Stifel Nicolaus & Company Incorporated

Professionals

  • Cs: (DVR) Louis D. Tambaro, Jardim Meisner & Susser, Florham Park, NJ.
  • Rs: (SN&CInc) Lauren Beekman, St. Louis, MO. ISC.

TypeDisp

CustomerMember

Allegation I

BreachContract

Short Caption

Markovic v. Sterne Agee

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Docket No

18-02757

Products

Equity

Issue Date

2019-05-10

Situs

New York

State

NY

Clmd Compensatory

546.6

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

The Panel explains why they granted Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to Rule 12206 (Six-year Eligibility Rule).

Notes

Pre-Hearing Adjudication -- Full Dismissal. Sanctions imposed. Clrg BD dispute. Majority Public Panel. Arbitrator Remarks.

Arbitrators

David I. Goldblatt, Esq. - Chair; Sandra Gale Behrle, Esq.; Nunzio Garzino

Broker-Dealers Named

Sterne Agee & Leach Incorporated

Professionals

  • Cs: Pro se.
  • Rs: (SA&LInc) George D. Sullivan, Greenberg Traurig LLP, White Plains, NY. OSC.

TypeDisp

EmployeeMember

Allegation I

Compensatn

Short Caption

Butler v. Cetera Advisor

Allegation II

BreachContract

Forum

FINRA

Allegation III

UnjustEnrichment

Docket No

17-01012

Products

PromissoryNote

Issue Date

2019-05-06

Situs

Cleveland

State

OH

Clmd Compensatory

975.0

Total Amt Awarded

600.0

Compensatory Awarded

600.0

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

Claimant broker prevails on his compensation/breach of contract claim against one named Respondent broker and is awarded damages. However, Claimant broker is held liable to said Respondent broker on his Counterclaim for the amounts due pursuant to an installment plan relating to an executed promissory note agreement.

Notes

Big $s. Rs Cetera Advisor Networks LLC and Victoria Louise Ellinger were not assessed any portion of the awarded amount. Rs Craig Douglas Wiggins was assessed.

Arbitrators

Michael James Malone - Chair; Michael J. Borden; Earl Williams, Jr., Esq.

Broker-Dealers Named

Cetera Advisor Networks LLC

Professionals

  • Cs: (PFB) William Joseph Baker, Baker & Roszczyk, Chagrin Falls, OH.
  • Rs: (CANLLC) Michael N. Unger & Shipra K. Rege, Ulmer & Berne, Cleveland, OH. OSC.
  • Rs: (VLE & CDW) Sean T. Needham, Reminger Co. LPA, Cleveland, OH.

TypeDisp

SmallClms

Allegation I

ExcessiveFees

Short Caption

Lavery v. Wells Fargo

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Docket No

18-03024

Products

Equity; Margin

Issue Date

2019-05-08

Situs

Oklahoma City

State

OK

Clmd Compensatory

22.0

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

Two customer trusts lose their claims against Respondent broker-dealer after alleging that said broker-dealer charged them an excessive rate of margin interest and that Respondent incurred a loss due to Rs recommendation that Cs purchase Gulf Mark stock. Non-Party broker is awarded expungement of this matter from his CRD record.

Notes

Arbitrator Remarks -- Expungement granted.

Arbitrators

James W. Kerr, Jr.

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: Pro se.
  • Rs: (WFALLC) Jeffrey D. Rodgers Jr., Wells Fargo Law Department, St. Louis, MO. ISC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

UBS Credit v. Santia

Allegation II

BreachContract

Forum

FINRA

Allegation III

UnjustEnrichment

Docket No

18-00926

Products

PromissoryNote

Issue Date

2019-05-07

Situs

Pittsburgh

State

PA

Clmd Compensatory

300.0

Total Amt Awarded

303.0

Compensatory Awarded

300.0

Punitive Damage Awarded

Attorney Fees Awarded

3.0

* 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 to Claimant broker-dealers for the amounts due and owing under eight promissory notes he executed as part of his employment.

Notes

Arbitrator Remarks.

Arbitrators

Gregory Hunter Mathews

Broker-Dealers Named

UBS Credit Corporation; UBS Financial Services Incorporated

Professionals

  • Cs: (UBSCCorp & UBSFSInc) Michelle M. Wezner, Howard & Howard, Royal Oak, MI. OSC.
  • Rs: (MFS) Brian J. Sommer, Morella & Associates, Pittsburgh, PA.

TypeDisp

SmallClms

Allegation I

UnauthTdg

Short Caption

Govindrajan v. Fidelity Brokerage

Allegation II

Churning

Forum

FINRA

Allegation III

Suitability

Docket No

18-04005

Products

MutualFunds

Issue Date

2019-05-09

Situs

PP

State

PP

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 case, a customer loses her claim against Respondent broker relating to mutual funds and a 401(k).

Notes

None.

Arbitrators

Linda J. Baer, Esq.

Broker-Dealers Named

Fidelity Brokerage Services LLC

Professionals

  • Cs: Pro se.
  • Rs: (FBSLLC) Meredith Faro, Boston, MA. ISC.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Lokits

Allegation II

BreachContract

Forum

FINRA

Allegation III

Docket No

18-04229

Products

PromissoryNote

Issue Date

2019-05-08

Situs

PP

State

PP

Clmd Compensatory

79.0

Total Amt Awarded

83.1

Compensatory Awarded

79.0

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 registered representative is held liable to Claimant broker-dealer for the amounts due and owing on two promissory notes he executed as part of his employment.

Notes

Arbitrator Remarks.

Arbitrators

Langfred W. White, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (WFCSLLC) Jessica Klein, Senior Adjuster - FA Collections, St. Louis, MO. ISC.
  • Rs: (BTL) No-show.

TypeDisp

MemberEmployee

Allegation I

LoanDefault

Short Caption

Wells Fargo v. Shotz

Allegation II

BreachContract

Forum

FINRA

Allegation III

UnjustEnrichment

Docket No

19-00109

Products

PromissoryNote

Issue Date

2019-05-10

Situs

PP

State

PP

Clmd Compensatory

693.7

Total Amt Awarded

378.9

Compensatory Awarded

378.9

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 to Claimant broker-dealer for the amount due and owing on a Promissory Note 1. Claimant's requests for the amounts due and owing on the other five promissory notes are denied.

Notes

None.

Arbitrators

William E. Schneider

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (WFCSLLC) Kip A. Nesmith, Burr & Forman, Birmingham, AL. OSC.
  • Rs: (RAS) No-show.

TypeDisp

SmallClms

Allegation I

FailToObey

Short Caption

Vasani v. Robinhood Financial

Allegation II

BreachFiducDty

Forum

FINRA

Allegation III

Docket No

19-00145

Products

Options

Issue Date

2019-05-09

Situs

PP

State

PP

Clmd Compensatory

50.0

Total Amt Awarded

22.0

Compensatory Awarded

22.0

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

Two non-appearing Respondent broker-dealers are held jointly liable to customer relating to his self-directed trading in SPDR S&P 500 ETF (SPY) call options.

Notes

None.

Arbitrators

John James McGovern, Jr., Esq.

Broker-Dealers Named

Robinhood Financial LLC; Robinhood Securities LLC

Professionals

  • Cs: Pro se.
  • Rs: (RFLLC & RSLLC) No-show.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Hudak v. Eagle Gate

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

18-02790

Products

NP

Issue Date

2019-05-10

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

An Arbitrator awards Claimant broker Reformation of his Form U-5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Merton E. Marks, Esq.

Broker-Dealers Named

Eagle Gate Securities Incorporated

Professionals

  • Cs: (TJH) Dochtor Kennedy & Michael O'Gara, AdvisorLaw LLC, Westminster, CO.
  • Rs: (EGSInc) Chase A. Adams, Adams Law, Sandy, UT. OSC.
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