UPDATE : ARBchek

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

New Award Briefs

Report Dated: 2022-06-28

2022-14

Primary Sort

Secondary Sort

Dispute Information

Damages*

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Tapia Sanchez v. Merrill Lynch

Allegation II

Negligence

Forum

FINRA

Allegation III

Supervision

Docket No

20-03591

Products

*

Issue Date

2022-05-26

Situs

Phoenix

State

AZ

Clmd Compensatory

357.6

Total Amt Awarded

330.0

Compensatory Awarded

320.0

Punitive Damage Awarded

Attorney Fees Awarded

10.0

* 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

The Panel finds Respondent broker liable on the claims of misrepresentation, manipulation and fraud and awards Claimant customer compensatory damages. The Panel also finds one named Respondent broker-dealer liable on the claims of negligence and failure to supervise and awards said customer compensatory damages.

Notes

Rs Merrill Lynch Pierce Fenner & Smith Inc. was not assessed any portion of the awarded amount. Rs Morgan Stanley and Francisco Javier Valenzuela were assessed. All-Public Panel. Arbitrator Remarks.

People & Entities

Arbitrators

Timothy J. Kroll, MS - Chair; Ronald Stewart Ripley, Esq.; Vineet Mehta Shaw

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated; Morgan Stanley

Professionals

  • Cs: Burt W. Newsome, Newsome Law LLC, Birmingham, AL.
  • Rs: (MLPFSInc) Tara A. LaClair, Crowe & Dunlevy, Oklahoma City, OK. OSC.
  • Rs: (MSSBLLC) Patricia V. Waterkotte, Rusing Lopez & Lizardi, Tucson, AZ. OSC.
  • Rs: (FJV) No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

McGann v. Wells Fargo

Allegation II

Forum

FINRA

Allegation III

Docket No

21-02325

Products

NP

Issue Date

2022-06-03

Situs

Phoenix

State

AZ

Clmd Compensatory

Equity

Total Amt Awarded

Equity

Compensatory Awarded

Equity

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

Registered Rep wins expungement of a customer complaint from appearing on his CRD record.

Notes

Panel composition issue. Arbitrator Remarks -- Expungement granted.

Arbitrators

Walter Steven Schwartz

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (TJM) Harris Freedman & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (WFCSLLC) Valerie I. Holder, Wells Fargo Law Department, San Francisco, CA. ISC.

TypeDisp

SmallClms

Allegation I

UnauthTdg

Short Caption

Rockefeller v. Wells Fargo

Allegation II

BreachContract

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

22-00146

Products

Equity; Margin

Issue Date

2022-05-24

Situs

Phoenix

State

AZ

Clmd Compensatory

6.0

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 alleging unauthorized trading with respect to his investment in Moderna Inc. stock loses his 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

Wells Fargo Advisors Financial Network

Professionals

  • Cs: Pro se.
  • Rs: (WFAFNtwk) Jeffery D. Rodgers Jr., St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Rand v. Morgan Stanley

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

19-01619

Products

NP

Issue Date

2022-05-26

Situs

San Francisco

State

CA

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

A broker loses her request for reformation of alleged defamatory information from appearing on her Form U5 record.

Notes

None.

Arbitrators

Laurel Littman Gothelf, MPH

Broker-Dealers Named

Morgan Stanley

Professionals

  • Cs: (DRR) Harris Freedman, HLBS Law, Westminster, CO.
  • Rs: (MSSBLLC) Simon M. Levy, Keesal Young & Logan, San Francisco, CA. OSC.

TypeDisp

EmployeeMember

Allegation I

Discrimination(Age)

Short Caption

Mazur v. Merrill Lynch

Allegation II

Compensatn

Forum

FINRA

Allegation III

BreachContract

Docket No

19-03635

Products

NP

Issue Date

2022-05-26

Situs

San Francisco

State

CA

Clmd Compensatory

0.0

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 Panel grants Respondent broker-dealer's Motion for Directed Verdict with prejudice pursuant to FINRA Rule 13504(b) as Claimant broker failed to prove any of his causes of action including his claim for age discrimination.

Notes

Please Note* This matter was decided by an All-Public Panel pursuant to Rule 13802 of the Code. Directed Verdict -- Full Dismissal. Age Discrimination case. Arbitrator Remarks.

Arbitrators

Nancy Hutt, Esq. - Chair; Dean J. Dietrich, Esq.; Shawn Ridgell

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (RFM) Denis S. Kenny, Scherer Smith & Kenny, San Francisco, CA.
  • Rs: (MLPFSInc) Jason E. Murtagh, Buchanan Ingersoll & Rooney, San Diego, CA. OSC.

TypeDisp

CustomerMember

Allegation I

Misreprestn

Short Caption

Hutchinson v. Morgan Stanley

Allegation II

Misappropriatn

Forum

FINRA

Allegation III

Suitability

Docket No

21-00004

Products

DirectInvesmts; Equity

Issue Date

2022-06-02

Situs

Los Angeles

State

CA

Clmd Compensatory

569.0

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 Claimants alleging churning and misappropriation with respect to their investments in Home Depot and United Tech stocks among other securities, settle their claims against Respondent broker-dealer. Non-Party registered rep is awarded expungement of this matter from his CRD record.

Notes

This is a Stipulated Award. Majority Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

Michael John Florio - Chair; Joseph Francis Young; Julia Ulloa

Broker-Dealers Named

Morgan Stanley Smith Barney LLC; Morgan Stanley & Company LLC

Professionals

  • Cs: Montgomery G. Griffin, Law Offices of M.G. Griffin, Newport Beach, FL.
  • Rs: (MSSBLLC & MS&CLLC) Kathleen Salvaty, Morgan Stanley Legal & Compliance Division, Los Angeles, CA. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Caston v. Ameriprise Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

21-01175

Products

NP

Issue Date

2022-06-02

Situs

Los Angeles

State

CA

Clmd Compensatory

0.0

Total Amt Awarded

Equity

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

Claimant broker is granted his request for reformation of misleading information from appearing on his CRD record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Elizabeth Anne Moreno - Chair; Jack R. Goetz; E. June McLaughlin-Cheng, Esq.

Broker-Dealers Named

Ameriprise Financial Services LLC

Professionals

  • Cs: (SDC) None.
  • Rs: (AFSLLC) Sydney H. Crowder, Minneapolis, MN. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Moreno v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

21-02693

Products

NP

Issue Date

2022-05-27

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 appearing on his CRD record.

Notes

Panel composition issue. Arbitrator Remarks -- Expungement granted.

Arbitrators

Robert E. Jenks

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (EGM) William Montgomery & Ashley E. Impellitteri, Keesal Young & Logan, Long Beach, CA.
  • Rs: (UBSFSInc) John Murphy, J. Murphy & Associates, New York, NY. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Varah v. Merrill Lynch

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

20-03025

Products

Options

Issue Date

2022-05-24

Situs

Boca Raton

State

FL

Clmd Compensatory

400.0

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 alleging unsuitability in the recommendation and investment in the Harvest Collateral Yield Enhancement Strategy settles his case against Respondent broker-dealer. Non-Party broker is granted expungement of this matter from appearing on his CRD record.

Notes

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

Arbitrators

William Kent Brown, Esq. - Chair; Arlene Simon Backman

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: Jason S. Haselkorn & Matthew N. Thibaut, Haselkorn & Thibaut, Palm Beach, FL.
  • Rs: (MLPFSInc) Jeff Goldman & Timothy P. Burke & Daniel J. Ball, Morgan Lewis & Bockius, Boston, MA. OSC. N-Pty
  • Rs: (JC) Jeremy L. Bartell, Bartell Law PLLC, Washington, DC.

TypeDisp

MemberNonMember

Allegation I

BreachContract

Short Caption

Raymond James v. Avenir Private Advisors

Allegation II

Forum

FINRA

Allegation III

Docket No

21-00086

Products

NP

Issue Date

2022-05-31

Situs

Boca Raton

State

FL

Clmd Compensatory

268.4

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

Claimant broker-dealer settles its breach of contract claim against Non-Member firm and registered investment advisor involving a Transition Assistance Agreement.

Notes

This is a Stipulated Award.

Arbitrators

Will Murphy, Esq. - Chair; Daniel Joseph Chiodo; Douglas Campbell

Broker-Dealers Named

Raymond James Financial Services Incorporated; Avenir Private Advisors LLC

Professionals

  • Cs: (RJFSInc) Robert K. Jamieson, Guerra King PA, Tampa, FL. OSC.
  • Rs: (APALLC) Justin Peter Lowe, New York, NY. ISC.
  • Rs: (JPL) None.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Kimura v. LPL Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

21-02526

Products

VariableAnnuities

Issue Date

2022-05-27

Situs

Honolulu

State

HI

Clmd Compensatory

Equity

Total Amt Awarded

Equity

Compensatory Awarded

Equity

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 complaint from his CRD record in spite of disapproval of the customer but is also denied expungement of another occurrence despite the objection of the customer involved.

Notes

Panel composition issue. Arbitrator Remarks -- Expungement granted.

Arbitrators

Laurel Littman Gothelf, MPH

Broker-Dealers Named

LPL Financial LLC

Professionals

  • Cs: (DJK) Zachary Morse, HLBS Law, Westminster, CO.
  • Rs: (LPLFLLC) Matthew T. Bohenek, Vice President & Associate General Counsel, Boston, MA. ISC.

TypeDisp

CustomerMember

Allegation I

UnauthTdg

Short Caption

Alter v. Worden Capital

Allegation II

Misreprestn

Forum

FINRA

Allegation III

ExcessiveFees

Docket No

19-02523

Products

*

Issue Date

2022-05-23

Situs

De Moines

State

IA

Clmd Compensatory

451.9

Total Amt Awarded

60.0

Compensatory Awarded

60.0

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 customer and a customer trust alleging undisclosed excessive markups and unauthorized trading win their case against Respondent broker-dealer and is awarded compensatory damages.

Notes

Rs Franz Lambert and Jamie J. Worden were not assessed any portion of the awarded amount. Rs Worden Capital Management Inc. was assessed. All-Public Panel.

Arbitrators

Jack D. Elmquist, Esq. - Chair; Robert J. Scafuri, Esq.; Frederick B. Anderson, Esq.

Broker-Dealers Named

Worden Capital Management Incorporated

Professionals

  • Cs: Kristian P. Kraszewski, Kyros Law Offices, Miami, FL.
  • Rs: (WCMLLC) Jamie J. Worden, New York, NY. ISC.
  • Rs: (FL) Michael C. Farkas, M.C. Farkas PLLC, New York, NY. OSC.
  • Rs: (JJW) None.

TypeDisp

MemberEmployee

Allegation I

Raiding

Short Caption

JP Morgan v. Krumwiede

Allegation II

BreachContract

Forum

FINRA

Allegation III

BreachFiducDty

Docket No

21-00301

Products

NP

Issue Date

2022-05-31

Situs

Chicago

State

IL

Clmd Compensatory

3099.2

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 raiding case, a Claimant broker-dealer alleging that three of its former registered representatives are in breach of their employment agreements by having solicited its customers to move their accounts to its competitor loses its case.

Notes

Raiding case.

Arbitrators

Leon Fox, JD - Chair; Michele Braun; Christopher Crimer, Esq.

Broker-Dealers Named

JP Morgan Securities LLC

Professionals

  • Cs: (JPMSLLC) Leonard Weintraub, Paduano & Weintraub, New York, NY. OSC.
  • Rs: (BAK, BLS & CJB) James V. Garvey, Vedder Price PC, Chicago, IL. OSC.

TypeDisp

MemberCustomer

Allegation I

DebitBalance

Short Caption

Charles Schwab v. Dusza

Allegation II

BreachContract

Forum

FINRA

Allegation III

Fraud

Docket No

21-01860

Products

*

Issue Date

2022-05-23

Situs

Chicago

State

IL

Clmd Compensatory

77.1

Total Amt Awarded

77.1

Compensatory Awarded

77.1

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 Claimant broker-dealer alleging that a customer fraudulently transferred funds to his account and traded with nonexistent money, thus incurring a debit balance is awarded damages.

Notes

Sanctions imposed.

Arbitrators

Mark L. Miller, Esq.

Broker-Dealers Named

Charles Schwab & Company Incorporated

Professionals

  • Cs: (CS&CInc) Jonathan D. Berg, Jaffe & Asher, New York, NY. OSC.
  • Rs: No-show.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

O'Connor v. Merrill Lynch

Allegation II

Forum

FINRA

Allegation III

Docket No

21-02211

Products

NP

Issue Date

2022-06-02

Situs

Chicago

State

IL

Clmd Compensatory

Equity

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

Registered Rep loses his request for expungement of a customer complaint from his CRD record.

Notes

Panel composition issue.

Arbitrators

Thomas P. Valenti

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated; Morgan Stanley DW Incorporated

Professionals

  • Cs: (TO) Brian Luther, FA Expungement LLC, Denver, CO.
  • Rs: (MLPFSInc) W. Preston Martin, Bressler Amery & Ross, Birmingham, AL. OSC.
  • Rs: (MSDWInc) Suzette J. Barnes, Morgan Stanley Legal and Compliance Division, San Francisco, CA. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Crull v. UBS Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

21-01913

Products

NP

Issue Date

2022-05-23

Situs

New Orleans

State

LA

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 reformation of defamatory information from his Form U5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Robert J. Gregory

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: (WLC) Benjamin Winograd & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (UBSFSInc) John Murphy, J. Murphy & Associates, New York, NY. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Smith v. UBS Financial

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

20-01660

Products

Options; Hypothecation

Issue Date

2022-06-01

Situs

Boston

State

MA

Clmd Compensatory

1200.0

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 customer and a customer trustee alleging that they were unsuitably placed in the Respondent broker-dealer's Yield Enhancement Strategy (YES) lose their case. Non-Party registered representative is granted expungement of this matter from his CRD record.

Notes

Rescission Requested. All-Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

Peter M. Cosel - Chair; Patrick Sullivan; Gail Sillman

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: Samuel B. Edwards, Shepherd Smith et al., Houston, TX.
  • Rs: (UBSFSInc) J Matthew W. Haws, Katten Muchin Rosenman LLP, Chicago, IL. OSC.

TypeDisp

CustomerMember

Allegation I

Negligence

Short Caption

Gaudet v. Arive Capital

Allegation II

BreachContract

Forum

FINRA

Allegation III

Supervision

Docket No

21-01036

Products

Equity

Issue Date

2022-06-03

Situs

Boston

State

MA

Clmd Compensatory

0.0

Total Amt Awarded

150.0

Compensatory Awarded

150.0

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 customer settles his case against Respondent broker-dealer, while the registered rep is held solely liable to said customer for damages relating to the purchase of Nostrum Holdings stocks.

Notes

Rs Arive Capital Markets was not assessed any portion of the awarded amount. Rs Michael Joseph Digioia was assessed.

Arbitrators

Gene M. Bauer, Esq. - Chair; Patrick Sullivan; Carol Ellen Carson

Broker-Dealers Named

Arive Capital Markets

Professionals

  • Cs: Christa M. Hibbard & Jason J. Kane, Peiffer Wolf et al., Rochester, NY.
  • Rs: (ACMkts) Anthony C. Varbero, Joseph Mure Jr. & Associates, Brooklyn, NY. OSC.
  • Rs: (MJD) None.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Kalkunte v. Merrill Lynch

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

21-01567

Products

NP

Issue Date

2022-05-25

Situs

Boston

State

MA

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

A broker loses her request for reformation of her Form U5 record.

Notes

Please Note* This case was administered under the Special Proceeding option for simplified cases.

Arbitrators

Mary E. Bassett

Broker-Dealers Named

Merrill Lynch Pierce Fenner & Smith Incorporated

Professionals

  • Cs: (SK) None.
  • Rs: (MLPFSInc) Stuart D. Roberts, Bressler Amery & Ross, Birmingham, AL. OSC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Souhrada v. Wells Fargo

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

21-02573

Products

NP

Issue Date

2022-05-25

Situs

St. Louis

State

MO

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 his request for reformation of alleged defamatory information from appearing on his CRD record.

Notes

None.

Arbitrators

Tracy L. Allen, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (TKS) Harris Freedman & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (WFCSLLC) Nuviah Shirazi, Wells Fargo Legal Department, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Dearcangelis v. Ameriprise Financial

Allegation II

Defamation

Forum

FINRA

Allegation III

Compensatn

Docket No

19-00316

Products

PromissoryNote

Issue Date

2022-06-03

Situs

Charlotte

State

NC

Clmd Compensatory

11656.4

Total Amt Awarded

388.0

Compensatory Awarded

314.0

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 broker seeking over $11 million in damages in deferred and bonus compensation is awarded damages against Respondent broker-dealer, while the two named registered reps are voluntarily dismissed with prejudice. Said broker is also awarded reformation of his Form U5 record.

Notes

Rs James Christopher Bryant and Michael Joseph Rearden were not assessed any portion of the awarded amount. Rs Ameriprise Financial Services Inc. was assessed. Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Robert H. Putnam, Jr., Esq. - Chair; Frederick R. Benson; Dayne Steven Beam

Broker-Dealers Named

Ameriprise Financial Services Incorporated

Professionals

  • Cs: (PMD) Adriaen M. Morse Jr., Arnall Golden Gregory LLP, Washington, DC.
  • Rs: (AFSInc, JCB & MJR) Scott A. La Porta, Shumaker Loop & Kendrick, Sarasota, FL. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Weir Family Trust v. UBS Financial

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

20-01960

Products

Options; Margin

Issue Date

2022-05-25

Situs

Albuquerque

State

NM

Clmd Compensatory

933.1

Total Amt Awarded

1446.6

Compensatory Awarded

933.1

Punitive Damage Awarded

0.0

Attorney Fees Awarded

311.0

* 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-dealer is held liable to a customer trust for over $1.4 million in damages after said trust was unsuitably placed in its Yield Enhancement Strategy. Non-Party broker loses his request for expungement of this matter from his CRD record.

Notes

Big $s. Rescission Requested. All-Public Panel. Arbitrator Remarks.

Arbitrators

Helen Marinak Blohm, Esq. (fka Helen M. Marinak, Esq.) - Chair; Paul H. Lamboley, Esq.; Harvey W. Gordon

Broker-Dealers Named

UBS Financial Services Incorporated

Professionals

  • Cs: Jeffrey B. Kaplan, Dimond Kaplan & Rothstein, Miami, FL.
  • Rs: (UBSFSInc) Charles A. DeVore & Zachary Schmitz & Shannon Gross, Katten Muchin Rosenman LLP, Chicago, IL. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Rose v. LPL Financial

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

17-03265

Products

VariableAnnuities

Issue Date

2022-06-03

Situs

New York

State

NY

Clmd Compensatory

687.7

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 alleging misrepresentation in the recommendation and purchase of variable annuities settle their case against Respondents. Respondent broker and Non-Party broker are both awarded expungement of this matter from their respective CRD records.

Notes

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

Arbitrators

Annamaria Boccia-Smith, Esq. (fka Annamaria Boccia-Kovarcik, Esq.) - Chair; Sirena Terr; Charlane Brown

Broker-Dealers Named

LPL Financial LLC; Houser & Plessl Wealth Management Group LLC

Professionals

  • Cs: Albert R. Murray Jr., Attorney-at-Law, East Stroudsburg, PA.
  • Rs: (LPLFLLC) James A. McGovern, Marshall Dennehey et al., Pittsburgh, PA. OSC.
  • Rs: (KDH & H&PWMGLLC) Michael S. Taaffe & Charles A. Wood, Shumaker Loop & Kendrick, Sarasota, FL. OSC.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Tufariello v. Joseph Gunnar

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

20-00366

Products

Equity

Issue Date

2022-05-25

Situs

New York

State

NY

Clmd Compensatory

750.0

Total Amt Awarded

164.3

Compensatory Awarded

52.5

Punitive Damage Awarded

105.0

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

An All-Public Panel awards a customer over $100,000 in punitive damages pursuant to case law relating to her purchase of various stocks including VIA Motors Inc. and ZocDoc Inc. Respondent broker-dealer loses its request for expungement on behalf of a Non-Party broker.

Notes

Punitive Damages Award. Rescission Requested. All-Public Panel. Arbitrator Remarks -- Case law cited.

Arbitrators

Paul Bennett Marrow - Chair; Ronald Harris Kisner; Susan A. Romano

Broker-Dealers Named

Joseph Gunnar & Company LLC

Professionals

  • Cs: Chase Carlson, Carlson Law, Miami, FL.
  • Rs: (JG&CLLC) John E. Lawlor, Attorney-at-Law, Mineola, NY. OSC.

TypeDisp

SmallClms

Allegation I

UnauthTdg

Short Caption

Bogatyrenko v. Morgan Stanley

Allegation II

Misreprestn

Forum

FINRA

Allegation III

BreachContract

Docket No

21-01613

Products

*

Issue Date

2022-05-27

Situs

New York

State

NY

Clmd Compensatory

30.0

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

In this small claims arbitration, a customer alleging unauthorized and discretionary trading loses his case against Respondent broker-dealer.

Notes

Please Note* This case was administered under the Special Proceeding option for simplified cases.

Arbitrators

John Franklin Udochi

Broker-Dealers Named

Morgan Stanley

Professionals

  • Cs: David Freniere, Freniere Law Group PLLC, Wellesley, MA.
  • Rs: (MSSBLLC) Andrew Joyce, New York, NY. ISC.

TypeDisp

CustomerMember

Allegation I

FailToObey

Short Caption

Lombard v. Wells Fargo

Allegation II

BestExecution

Forum

FINRA

Allegation III

Docket No

20-02535

Products

Equity

Issue Date

2022-05-26

Situs

Philadelphia

State

PA

Clmd Compensatory

234.7

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 customer alleging that Respondents failed to execute the purchase of shares in Apple stock settles his case. Respondent broker is granted expungement of this matter from appearing on his CRD record.

Notes

This is a Stipulated Award. Majority Public Panel. Arbitrator Remarks -- Expungement granted.

Arbitrators

Gordon W. Wase, Esq. - Chair; George Forest Bingham, Esq.; John T. Hausladen

Broker-Dealers Named

Wells Fargo Advisors LLC

Professionals

  • Cs: Anthony P. Monzo, Monzo Catanese et al., Cape May Court House, NJ.
  • Rs: (WFALLC & JS) Deirdre Wolff, St. Louis, MO. ISC.

TypeDisp

MemberNonMember

Allegation I

BreachContract

Short Caption

Boomerang Capital v. Rhino Small Cap

Allegation II

Compensatn

Forum

FINRA

Allegation III

UnjustEnrichment

Docket No

21-00475

Products

DirectInvesmts

Issue Date

2022-06-03

Situs

Philadelphia

State

PA

Clmd Compensatory

313.4

Total Amt Awarded

557.0

Compensatory Awarded

313.4

Punitive Damage Awarded

Attorney Fees Awarded

243.6

* 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 FINRA member firm is awarded over $500,000 on its breach of contract claim against two named Respondents, while the other named Respondent is dismissed on a Motion for Directed Verdict.

Notes

Big $s. Rs Rhino Fund LP was not assessed any portion of the awarded amount. Rs Rhino Small Cap Financial Fund LP and Rhino Investment Partners Inc. were assessed. Directed Verdict -- Party Dismissal. Majority Public Panel. Arbitrator Remarks.

Arbitrators

Julie K. Chapin - Chair; John McGrody; Mark Ignatius Salvacion

Broker-Dealers Named

Boomerang Capital LLC

Professionals

  • Cs: (BCLLC) William A. Rome, Robinson Brog et al., New York, NY. OSC.
  • Rs: (RSCFFLP, RFLP & RIPInc) Scott E. Zweigel, Parker Hudson et al., Atlanta, GA.

TypeDisp

CustomerMember

Allegation I

Suitability

Short Caption

Nies v. Geneos Wealth

Allegation II

Misreprestn

Forum

FINRA

Allegation III

Supervision

Docket No

21-00513

Products

DirectInvesmts

Issue Date

2022-05-26

Situs

Philadelphia

State

PA

Clmd Compensatory

1000.0

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

Claimant customer alleging unsuitability with respect to his investment in securities offered by GPB Capital Holdings LLC settles his case against Respondent broker-dealer. Two Non-Party brokers lose their requests for expungement of this matter from their respective CRD records.

Notes

This is a Stipulated Award. All-Public Panel.

Arbitrators

Mary S. Wyatte - Chair; Diane Ciccone, Esq.; Doris J. Dabrowski, Esq.

Broker-Dealers Named

Geneos Wealth Management Incorporated

Professionals

  • Cs: Adam J. Weinstein, Gana Weinstein LLP, New York, NY.
  • Rs: (GWMInc) Victoria H. Buter, Kutak Rock LLP, Omaha, NE. OSC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Rojas v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

21-02330

Products

MuniSecs; MutualFunds

Issue Date

2022-05-26

Situs

San Juan

State

PR

Clmd Compensatory

Equity

Total Amt Awarded

Equity

Compensatory Awarded

Equity

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 explains in detail why she has decided to grant a broker's request for expungement of a customer complaint from appearing on his CRD record.

Notes

Arbitrator Remarks -- Expungement granted. Explained Award.

Arbitrators

Elena G. Rodriguez

Broker-Dealers Named

UBS Financial Services Incorporated of Puerto Rico; UBS Financial Services Incorporated

Professionals

  • Cs: (DLR) Sonia M. Lopez & Roberto C. Quinones-Rivera, McConnell Valdes LLC, San Juan, PR.
  • Rs: (UBSFSIncPR & UBSFSInc) Rey F. Medina Velez, San Juan, PR. ISC.

TypeDisp

EmployeeMember

Allegation I

Expungement(CRD)

Short Caption

Musgrave v. UBS Financial

Allegation II

Forum

FINRA

Allegation III

Docket No

21-03068

Products

NP

Issue Date

2022-06-02

Situs

San Juan

State

PR

Clmd Compensatory

Equity

Total Amt Awarded

Equity

Compensatory Awarded

Equity

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 grants a broker's request for expungement of a customer complaint from appearing on his CRD record.

Notes

Panel composition issue. Arbitrator Remarks -- Expungement granted.

Arbitrators

Louis David Huss

Broker-Dealers Named

UBS Financial Services Incorporated of Puerto Rico

Professionals

  • Cs: (EEM) Jose A. Irizarry-Castro & Roberto C. Quinones-Rivera, McConnell Valdes LLC, San Juan, PR.
  • Rs: (UBSFSIncPR) Rey F. Medina Velez, San Juan, PR. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Wyrick v. Wells Fargo

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

21-02544

Products

MutualFunds

Issue Date

2022-06-03

Situs

Nashville

State

TN

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 his request for reformation after finding that the entry listed on his Form U5 record was defamatory in nature.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

John P. Cullem, Esq.

Broker-Dealers Named

Wells Fargo Clearing Services LLC

Professionals

  • Cs: (DWW) Zachary Morse & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (WFCSLLC) Nuviah Shirazi, Wells Fargo Legal Department, St. Louis, MO. ISC.

TypeDisp

EmployeeMember

Allegation I

Reformation(U-5)

Short Caption

Awosemusi v. Edward Jones

Allegation II

Defamation

Forum

FINRA

Allegation III

Docket No

21-02521

Products

NP

Issue Date

2022-06-01

Situs

Dallas

State

TX

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 reformation of defamatory information from appearing on his Form U5 record.

Notes

Arbitrator Remarks -- Reformation U-5 granted.

Arbitrators

Dineo Coleman Gary

Broker-Dealers Named

Edward Jones

Professionals

  • Cs: (MBA) Samantha Pastor & Dochtor Kennedy, AdvisorLaw LLC, Westminster, CO.
  • Rs: (EDJ&CLP) Jonathan W. Hackbarth, Quarles & Brady, Milwaukee, WI. OSC.
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