* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this Consolidated Award, a group of customers alleging professional and gross negligence and seeking rescission of their investments lose their case against Respondent broker-dealer.
Notes
This is a Consolidated Award. Rescission Requested. All-Public Panel.
People & Entities
Arbitrators
Randy R. Maher, JD - Chair; Anita Rae Shapiro, Esq.; Douglas B. Harris
Broker-Dealers Named
Fidelity Brokerage Services LLC
Professionals
Cs: Matthew N. Thibaut, Haselkorn & Thibaut, Juno Beach, FL.
Rs: (FBSLLC) Joel M. Everest, Bressler Amery & Ross, 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
An All-Public Panel grants, without prejudice, Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12206 (Six-year Eligibility Rule) after finding the customer's case is not eligible for arbitration as the occurrence or event giving rise to her claims occurred in 2014 well before the six-year deadline to file said claims.
Notes
Pre-Hearing Adjudication -- Full Dismissal. Regulation Best Interest. All-Public Panel. Arbitrator Remarks.
Arbitrators
Barbara M. Zak, Esq. - Chair; LaToya Blakely; Ithai Jonathan Galindo
Broker-Dealers Named
Independent Financial Group LLC
Professionals
Cs: Steven D. Toskes, KLAYMANTOSKES PA, Palm Beach, FL.
Rs: (IFGLLC) Natalie P. Vance, KLINEDINST PC, Sacramento, CA. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An All-Public Panel explains why it has decided to deny the customers' case finding that although Respondent breached a duty of care to Claimants by failing to report to them sooner that the Florida Statutes Chapter 415 reporting obligation to the Florida Department of Children and Families applied as of June 2020, the Panel found that Respondent was not the proximate cause of their losses.
* 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 ten customer complaints from her CRD record after the authorized representative of the state securities regulator for California objected to such relief. However, one Arbitrator dissents from the rest of the Panel and felt that Claimant established one or more grounds under FINRA Rule 13805 and would have awarded expungement.
Notes
Arbitrator Remarks -- Arbitrator dissents with explanation.
Arbitrators
Sharon R. Merriman, Esq. - Chair; Barbara M. Zak, Esq.; Darryl C. Wilson, Esq. (Dissents)
Broker-Dealers Named
Citigroup Global Markets Incorporated; Merrill Lynch Pierce Fenner & Smith Incorporated
Professionals
Cs: (HPW) Chelsea Bauer, HLBS Law, Broomfield, CO.
Rs: (CGMInc) Adam Kauff, Kauff Laton Miller LLP, New York, NY. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Broker wins expungement of a customer complaint from appearing on his CRD record after the Panel found the complaint to be factually impossible, clearly erroneous, and false under FINRA Rule 2080.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Theodore W. Wrobleski, Esq. - Chair; Herbert Liberman; Gloria O. North, Esq.
Broker-Dealers Named
Fidelity Brokerage Services LLC
Professionals
Cs: (NJR) Joel M. Everest, Bressler Amery & Ross, Birmingham, AL.
* 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 she failed to receive the right information regarding the cost of certain investments loses her case against Respondent broker-dealer.
Notes
Please Note* This matter proceeded pursuant to Rule 12800 of the Code. Cs did not request a hearing.
Arbitrators
Lewis Gordon Brewer
Broker-Dealers Named
None.
Professionals
Cs: Pro se.
Rs: (EJC) Rachel A. Weitzman, Gordon Rees et al., Irvine, CA. 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
After finding the claim to be clearly erroneous, a Panel unanimously awards three brokers expungement of three different customer complaints from appearing on their respective CRD records.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Charles Scott McClellan - Chair; Mary E. Woytek, Esq.; Robert M. Lustig
* 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 is awarded reformation and the Arbitrator recommends that the Termination Explanation contained in his Form U5 record be deleted in its entirety.
Notes
Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Theodore W. Wrobleski, Esq.
Broker-Dealers Named
Resolute Investment Distributors Incorporated
Professionals
Cs: (JMB) Alex Padla, HLBS Law, Broomfield, CO.
Rs: (RIDInc) Jason Habinsky, Hayne & Boone LLP, New York, NY. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A Panel explains why it has decided to grant Respondent broker-dealers' Motion for Directed Verdict (Motion to Dismiss) finding that based on the evidence presented Claimant did not establish that any of the broker-dealers named in this case have any liability to her for over $15 million relating to the alleged missing assets or that she is entitled to damages especially in the exorbitant amount of over $16 million.
Notes
Directed Verdict -- Full Dismissal. Majority Public Panel. Arbitrator Remarks.
Arbitrators
Michael L. Lyons, Esq. - Chair; Michael A. Meyer, Esq.; Teresa Marie Boyer Allgeyer
Broker-Dealers Named
Charles Schwab & Company Incorporated; Scottrade Incorporated; TD Ameritrade Incorporated
Professionals
Cs: Pro se.
Rs: (CS&CInc, SInc & TDAInc) Vincent P. Schmeltz III, Barnes & Thornburg, Chicago, IL. 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
After resolving his claims by entering into a Confidential Settlement Agreement, a broker is granted his request for reformation of defamatory information from appearing on his Form U5 record.
Notes
Arbitrator Remarks -- Reformation U-5 granted.
Arbitrators
Patricia Ann Tracey, Esq. - Chair; Sharon Lanette Ervin; Jeffrey Lee Smith
Broker-Dealers Named
NYLife Distributors LLC; New York Life Insurance Company Incorporated
Professionals
Cs: (ACLB) Richard St. Paul, St. Paul Law Firm, White Plains, NY.
Rs: (NYLDLLC) Christopher J. Murdoch, Emry Murdoch LLC, Chicago, IL. OSC.
Rs: (NYLICInc) No-show -- Did not voluntarily submit to arbitration.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An Arbitrator grants, without prejudice, Respondent broker-dealer's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 13206(a) (Six-year Eligibility Rule for Industry Disputes) and denied Claimant's request for reformation of his Form U5 record.
Notes
Pre-Hearing Adjudication -- Full Dismissal. Arbitrator Remarks.
* 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 rep is awarded reformation of his Form U5 record after the Arbitrator found that the content contained in said U5 is defamatory in nature and should be expunged from his record as an example of fairness.
* 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 a broker expungement of a customer complaint from appearing on his CRD record after finding said request met all three criteria under FINRA Rule 2080.
Notes
Arbitrator Remarks -- Expungement granted.
Arbitrators
Richard J. Lawrence, Esq. - Chair; Barry H. Barnett, Esq.; Julius Z. Frager
Broker-Dealers Named
UBS Financial Services Incorporated
Professionals
Cs: (JLC) David I. Hantman, Bressler Amery & Ross, New York, NY.
Rs: (UBSFSInc) Omar Perez, UBS Business Solutions US LLC, Nashville, TN. ISC.
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