* 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 Respondent broker-dealer allegedly exposed them to unwarranted risk by over concentrating their assets in unsuitable investment products settle their case. Non-Party registered representative is granted his request for expungement of this matter from his CRD record despite the objection of Claimants.
Notes
This is a Stipulated Award. Rescission Requested. All-Public Panel. Arbitrator Remarks -- Expungement granted.
People & Entities
Arbitrators
Charles E. White - Chair; Tinisha Monique Glenn; Henry Carey Strickland
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: Michael C. Bixby & Petya I. Pucci, Bixby Law PLLC, Pensacola, FL.
Rs: (MSSBLLC) Peter S. Fruin, Maynard Nexsen PC, Birmingham, AL. 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 loses her request for expungement of a customer complaint from appearing on her CRD record with prejudice as the Panel's decision to award expungement was not unanimous. One Arbitrator found that one or more grounds for expungement in Rule 13805 of the Code was met, whereas the other two Arbitrators did not make such a finding.
Notes
Arbitrator Remarks -- Arbitrator dissents with explanation.
Arbitrators
William J. Bender, Esq. - Chair; Steven R. Rolnick, Esq.; Richard P. Regan, Esq. (Dissents)
Broker-Dealers Named
Morgan Stanley Smith Barney LLC
Professionals
Cs: (SK) Josef Y. Rosen, GrayRobinson PA, Tampa, FL.
Rs: (MSSBLLC) Trae D. Meyr, St. Petersburg, FL. 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
An investor alleging that his account with Respondent broker-dealer was victim of unauthorized withdrawals and that said broker-dealer closed his account in retaliation related to financial transactions loses his case.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Cs did not request a 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
A customer alleging that Respondent broker-dealer failed to perform its due diligence by allowing him to make inappropriate options trades for his account despite knowing he was an inexperienced options trader loses his case.
Notes
All-Public Panel.
Arbitrators
David M. Snyder, Esq. - Chair; Lisa Joy Cappalli; Eric Enrique
* 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 Respondents did not act in his best interest with respect to the management of his account regarding unexercised stock options and shares in Compass Inc. is awarded $5.5 million in damages.
Notes
Big $s. Regulation Best Interest. All-Public Panel. Panel composition issue.
* 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 expungement of two customer complaints from his CRD record after finding said complaint to be factually impossible and false under FINRA Rule 2080.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Michael J. Ahlstrom, Esq. - Chair; Steven R. Rolnick, Esq.; Kathy A. Tatone, Esq.
* 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
After credibly testifying as to the factual background of the investment, a Panel awards a broker expungement of a customer complaint from his CRD record finding said complaint to be factually impossible and false under FINRA Rule 2080.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Peter A. Goldman, Esq. - Chair; Ian S. Greig; Michael J. Quarequio, Esq.
Broker-Dealers Named
B Riley Wealth Management
Professionals
Cs: (JKF) Joshua A. Katz & James D. Sallah, Sallah Astarita & Cox, Boca Raton, FL.
Rs: (BRWMgmt) Emily A. Hayes, B Riley Financial, 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
An Arbitrator dismisses a customer's case with prejudice after finding FINRA lacks jurisdiction over the dispute as it relates to a qualified retirement account governed by ERISA and that Respondent broker-dealers are not the proper corporate entities named in this matter.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Cs did not request a hearing. Arbitrator Remarks.
Arbitrators
Frances P. Kao
Broker-Dealers Named
Fidelity Brokerage Services LLC; Fidelity Distributors Company LLC
* 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 grants a broker's request for expungement of a customer complaint from his CRD record despite the objection of the state securities regulator for California.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Eugene G.P. Byrne, Esq. - Chair; Mark R. Lee; Frances Johnson-Wright, Esq.
Broker-Dealers Named
Laidlaw & Company (UK) Limited
Professionals
Cs: (CBK) Tosh Grebenik, Judex Law LLC, Broomfield, CO.
Rs: (L&CUKLtd) Christopher Smulevitz, 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
After voluntarily dismissing with prejudice his discrimination and employment claims, a broker is granted his request for reformation of defamatory information from his Form U5 record.
Notes
Please Note* This matter was decided by an All-Public Panel pursuant to Rule 13802 of the Code. Age discrimination case. Whistleblowing case. Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Allan R. Lazor, Esq. - Chair; James Douglas Gaughan, Esq.; Cary Valden Sorensen, Esq.
Broker-Dealers Named
UBS Financial Services Incorporated
Professionals
Cs: (SDP) Coren H. Stern & Alexa Rudnick, Zinober Diana & Monteverde, Fort Lauderdale, FL.
Rs: (UBSFSInc) Stefanie R. Moll & Anna M. Robshaw, Morgan Lewis & Bockius, 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
A Panel unanimously grants Claimant broker's request for expungement of a customer complaint from appearing on his CRD record.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Robert D. Sussin, Esq. - Chair; Lawrence E. Dube, Jr., Esq.; Morton S. Bunis, Esq.
Broker-Dealers Named
Ameriprise Financial Services LLC
Professionals
Cs: (CWC) Andrew R. Park, Park Sensenig & Burns, Richmond, VA.
Rs: (AFSLLC) Howard M. Klausmeier, Troy, MI. ISC.
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