Promissory Notes (often called up-front forgivable loans) are commonly used as a recruiting tool by many of the major brokerage firms in the securities industry, including Morgan Stanley Smith Barney, Banc of America Investment Services, Wells Fargo, Merrill Lynch, Ameriprise , and UBS Financial Services.
Essentially, brokerage firms use the up-front forgivable loans to recruit financial advisors from other firms to bring their clients (or “book of business”) to the new firm. Typically these loans are then forgiven by the hiring firm on a monthly or annual basis and if the financial advisor remains with the new firm through the duration of the forgiveness period of the loan, the broker does not have to repay the loan. If, however, the financial advisor resigns from the brokerage firm, or is terminated, before the loan is forgiven, the broker is contractually obligated to repay the outstanding amounts owed on the loan and the brokerage firm will often move to collect the outstanding amount still owed on the loan (often by filing a FINRA arbitration claim).
Such claims are one of the most common types of FINRA arbitration disputes. Based on recent awards, it appears that firms continue to be successful in prevailing in such claims. From 1/1/2012-12/31/2013, there appear to have been over 452 promissory note cases that went to hearing. Of those claims, our research indicates that in only 57 instances did the financial advisor either prevail on the promissory note claim, or was awarded some damages that at least offset the amount owed on the promissory note.
All is not lost though. There are legitimate defenses to promissory note claims and financial advisors should research their rights before simply agreeing to settle such claims.
If you have questions about securities industry promissory notes, The White Law Group may be able to help. To speak to a securities attorney, please call our Chicago office at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. For more information on The White Law Group visit https://whitesecuritieslaw.com.
The following is a breakdown of the awards between 1/1/2012-12/31/2013 wherein the advisor either prevailed on the note claim or was at least awarded damages that offset the amount owed on the note:
| Case No. | Claimant(s) | Respondent(s) | Award of Panel |
| 13-00144 | RBC Capital Markets LLC | Thomas Alexander Hand | (1) Respondent to pay Claimant compensatory damages of $237,326.00; (2) Claimant to pay Respondent compensatory damages of $40,000.00. This award is subject to an offset as described in Item 3 below. Claimant’s obligation is extinguished by the offset. (3) Respondent’s award in the amount of $40,000.00 is an offset to Claimant’s award. As such, Respondent is liable for and shall pay to Claimant the amount of $237,326.00 minus $40,000.00 awarded to Respondent, for a net amount due to Claimant of $197,326.00. |
| 11-03662 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC, Morgan Stanley & Co., LLC | John Darold Simmons | Respondent to pay $546,336.00 in compensatory damages, which amount includes pre-judgment interest. Respondent to pay Claimant post-judgment simple interest on the aforementioned award of $546,336.00 at the rate of 10% per annum accruing from the date of service of the Award until the award is paid in full. MSSB and MSSB FA Notes are jointly and severally liable for and shall pay to Simmons $382,585.00 in compensatory damages, which amount includes pre-judgment interest. MSSB and MSSB FA Notes are jointly and severally liable for and shall pay to Simmons post-judgment simple interest on the aforementioned award of $382,585.00 at the rate of $10% per annum accruing from the date of service of the Award until the award of $382,585.00 is paid in full. |
| 13-01235 | Wells Fargo Advisors, LLC | Mark Brennan Kelly | Respondent to pay Claimant compensatory damages in the amount of $13,831.46. Claimant to pay Respondent compensatory damages of $3,000.00. Respondent’s award of $3,000.00 shall be deducted from Claimant’s award of $13,831.46. Claimant shall be entitled to interest on the amount of $10,831.46 at the rate of 7.35% per annum from 5/15/2012 until the award is paid in full. |
| 10-04296 | Wells Fargo Advisors, LLC | Bryan Joseph Clark | Claimant’s claims are denied in their entirety. |
| 12-02085 | Morgan Stanley Smith Barney, LLC; Morgan Stanley Smith Barney FA Notes Holdings, LLC | Guilherme Kuchkarian | Claimants’ claim are denied in their entirety; Respondent’s Counterclaims are denied in their entirety; Claimants are jointly and severally liable for and shall pay to Respondent $300.00 to reimburse Respondent for the non-refundable portion of the Counterclaim filing fee previously paid to FINRA Dispute Resolution. |
| 13-00781 | Merrill Lynch, Pierce, Fenner & Smith Inc. | John C. Lowe, IV | Claimant’s claims are denied in their entirety. Claimant’s request for attorneys’ fees is denied. All other relief requests are denied. |
| 11-04550 | Anderson & Strudwick, Inc.; Anderson & Strudwick Investment Corporation | Donald J. Gunn, Jr. | Respondent Gunn is found liable and shall pay Claimants the sum of $489,994.00 in compensatory damages. Claimants are found jointly and severally liable and shall pay Respondent Gunn $22,000.00 in compensatory damages for lost insurance trail income. |
| 12-01106 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC | David Joseph Ayres | Respondent is liable for and shall pay to Claimant MSSB compensatory damages in the amount of $466,696.00. The award is subject to offset as described in Item 2 below. Respondent’s obligations are extinguished by the offset. Claimant MSSB is liable for and shall pay to Respondent compensatory damages in the amount of $638,069.00. Claimant MSSB’s awards in the amount of $466,696.00 is an offset to Respondent’s award. As such, Claimant MSSB is liable for and shall pay to Respondent compensatory damages in the amount of $637,069.00 minus $466,696.00 awarded to Claimant MSSB, for a net amount of $170,373.00 due to Respondent. Claimant MSSB shall release any and all holds on Respondent’s account at MSSB. |
| 12-01115 | Cambridge Investment Research, Inc. | Henry Mark Korngut | Respondent is liable for and shall pay to Claimant the amount of $22,266.42 in compensatory damages. Claimant is liable for and shall pay to Respondent compensatory damages in the amount of $160,000.00 on claims for defamation and breach of Registered Representative Agreement. Claimant’s award in the amount of $22,266.42 is an offset of Respondent’s award. Accordingly, Respondent’s obligation is extinguished by the offset. As such Claimant is liable for and shall pay to Respondent compensatory damages in the net sum of $137,733.58. Claimant is liable and shall pay to Respondent interest at the rate of 10% per annum on the net award of $137,733.58 to accrue from the date of service of the award until the net award of $137,733.58 is paid in full. Respondent is liable for and shall pay to Claimant attorneys’ fees in the amount of $20,538.00 pursuant to California Civil Code. Claimant’s award in the amount of $20,538.00 is an offset to Respondent’s award. Accordingly, Respondent’s obligation is extinguished by the offset. As such, Claimant is liable for and shall pay to Respondent attorneys’ fees in the net sum of $32,957.00. |
| 12-00152 | Merrill Lynch International Finance, Incorporated and Merrill Lynch, Pierce, Fenner & Smith, Inc. | Danford Meischen | Claimants’ claims, each and all, are hereby denied and dismissed with prejudice in their entirety. Claimants are liable for and shall pay to Respondent, costs in the amount of $8,092.70. |
| 12-01668 | Popular Securities, Inc. | Gustavo del Valle Pagan; Sara M. Sanchez and the Conjugal Partnership Constituted by Them | With respect to Claimant’s claim, Claimant’s demand for repayment of the Note is denied in its entirety. With respect to Respondent Pagan’s Counterclaim, Claimant is liable for wrongful termination and shall pay to Respondent Pagan compensatory damages in the total amount of $80,000.00 plus interest. (Award includes a long breakdown of interest.) |
| 11-00469 | Deutsche Bank Securities, Inc. | Trevor B. Rahn | Deutsche Bank Securities, Inc. is liable for and shall pay to Trevor Rahn compensatory damages for his Counterclaim in the sum of $30,593.20 and attorneys fees and costs in the sum of $5,000.00 pursuant to California Labor Code for a total of $35,593.00. Trevor Rahn is liable for and shall pay to Deutsche Bank Securities, Inc. compensatory damages for its Statement of Claim in the sum of $552,398.69. Trevor Rahn’s award in the amount of $35,593.20 is an offset to Deutsche Bank Securities’s award. Accordingly, Deutsche Bank Securities’ obligations are extinguished by the offset. As such, Trevor Rahn is liable for and shall pay to Deutsche Bank Securities compensatory damages in the net sum of $516,805.49. Trevor Rahn is liable for and shall pay to Deutsche Bank Securities simple interest on the aforementioned award of $516,805.49 at the rate that was in effect on 8/5/2010 calculated pursuant to paragraph 2 of the Note. The interest rate that was in effect on 8/5/2010 shall not be subject to further adjustments or resetting and shall remain fixed so long as any portion of the $516,805.49 award remains unsatisfied. Interest on said award will begin to accrue 7/31/2010 until paid in full. Trevor Rahn is liable for and shall pay to Deutsche Bank Securities $205,654.59 in attorneys fees and costs pursuant to the terms of the Note. Trevor Rahn is liable for and shall pay to Deutsche Bank Securities simple interest on the aforementioned award of $205,654.59 at the rate that was in effect on 8/5/2010 calculated pursuant to paragraph 2 of the Note. The interest rate that was in effect on 8/5/2010 shall not be subject to further adjustments or resetting and shall remain fixed so long as any portion of the $205,654.59 award remains unsatisfied. Interest on said award will begin to accrue 30 days after service of the award until paid in full. |
| 12-04351 | Wells Fargo Advisors, LLC | Byron Alan Brook | Claimant’s claims are denied in their entirety. |
| 10-03377 | Morgan Stanley & Co., LLC and Morgan Stanley Smith Barney, LLC | Allen McMichael Gibson | Claimant’s claims are denied in their entirety. |
| 12-00953 | UBS Financial Services, Inc. | Randall Larry Krenzin and William Randolph Zurn | Claimant’s claims are denied in their entirety. |
| 11-04310 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC | Thomas Chapley Moore | Respondent is liable to Claimants for compensatory damages in the sum of $332,163.60 which amount includes the principal and interest due on the Note. Claimants are liable, jointly and severally, to Respondent for compensatory damages in the sum of $140,000.00, which amount shall be offset against the compensatory damages awarded to Claimants. Accordingly, after reducing the amount Respondent owes Claimants by the amount of Respondent’s offset, the Panel determines that Respondent shall pay to Claimants compensatory damages in the sum of $192,163.60. Respondent is liable and shall pay to Claimants attorneys’ fees in the sum of $54,323.50 pursuant to the Note. Respondent is liable and shall pay to Claimants costs in the amount of $2,406.16. |
| 12-01476 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC | James M. Kenny | Respondent is liable and shall pay to Claimants compensatory damages in the amount of $129,581.56 inclusive of interest up to April 9, 2013. Interest at the rate of 2% per annum ceased to accrue on April 9, 2013 if this Award is paid within 30 days of service. Respondent is liable and shall pay to Claimants post judgment interest at the rate of 2% per annum beginning 30 days after the Award date until paid. Claimants are liable for and shall pay to Respondent compensatory damages in the amount of $18,877.87. Respondent’s award in the amount of $18,877.87 is an offset to Claimants’ award. As such, Respondent is liable for and shall pay to Claimants the sum of $129,581.56 minus $18,877.87 awarded to Respondent, for a net amount of $110,703.69 due to Claimants. |
| 10-04592 | Merrill Lynch, Pierce, Fenner & Smith, Inc. | Jeffrey R. Wescott | Claimant’s claims, each and all, are hereby denied and dismissed with prejudice; Claimant is liable for and shall pay to Respondent the sum of $232,505.00 in compensatory damages. |
| 11-03406 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Robert M. Quinn | Claimant’s claims are denied in their entirety. |
| 10-04088 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Mary Mattson Kenworthy | Respondent is liable for and shall pay to Claimant compensatory damages in the amount of $1,200,000.00 for the principal due on the first note plus interest at the rate of 5% per annum from September 19, 2008 until payment of the award. Claimant’s request for compensatory damages on the second note is denied. Claimant is liable for and shall pay to Respondent compensatory damages in the amount of $41,000.00 which will be set off by the $1,200,000.00 awarded above. Accordingly, Respondent is liable for and shall pay to Claimant the net amount of $1,159,000.00. Respondent is liable for and shall pay to Claimant attorneys’ fees in the amount of $80,000.00. The Panel awarded attorneys’ fees pursuant to the terms of the promissory note. |
| 11-03133 | UBS Financial Services, Inc. | Nicholas Yrizarry | Yrizarry is liable for and shall pay to UBS the amount of $1,503,120.22 for the principal balance due on Note 1, Note 2, Note 3, Note 4 and Note 5. UBS is liable and shall pay to Yrizarry compensatory damages in the amount of $79,200.00. Yrizarry’s award in the amount of $79,200.00 is an offset to UBS’ award. Accordingly, UBS’ obligations are extinguished by the offset. As such, Yrizarry is liable for the shall pay to UBS $1,503,120.22 minus $79,200.00 for a net amount due to UBS of $1,423,920.22. Yrizarr is also liable for and shall pay to UBS pre-judgment interest on the aforementioned award of $1,503,120.22 at the rates of 3.558% per annum on Note 1, 2.688% per annum on Note 2, 2.828% per annum on Note 3, 2.80% per annum on Note 4 and 2.94% per annum on Note 5, accruing from 8/5/2011 to 4/4/2013 in the amount of $83,949.96. Yrizarry is also liable for and shall pay to UBS post-judgment interest on the aforementioned award of $1,503,120.22 at the rate of 10% per annum accruing from 4/4/2013 until the Award is paid in full. Yrizarry is also liable and shall pay to UBS $302,374.00 in attorneys’ fees pursuant to the terms of Note 1, Note 2, Note 3, Note 4 and Note 5. Yrizarry is also liable for and shall pay to UBS $12,722.08 in costs. |
| 11-02752 | UBS Financial Services, Inc. | James P. Kirwan | UBS’ Claims against Kirwan and Meninger are denied in their entirety. UBS is liable for and shall pay to Kirwan and Meninger compensatory damages in the amount of $250,000.00. |
| 12-02245 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC | William Keith Brown | MSSB and MSSB Notes’ claims are denied in their entirety. MSSB and MSSB Notes are directed to unfreeze Brown’s account and reimburse all account charges. MSSB and MSSB Notes are jointly and severally liable for and shall pay to Brown the sum of $21,000.00 for commissions lost in the transition between the closing of MSSB and MSSB Notes’ Idaho Falls office and Brown’s new employment. MSSB and MSSB Notes are jointly and severally liable for and shall pay to Brown interest on the aforementioned award of $21,000.00 at the Idaho statutory rate of 5.25% per annum accruing from the date of service of this Award until paid in full. |
| 12-02247 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC | William Blaine Burton | Claimants’ claims are denied in their entirety. Claimants are jointly and severally liable for and shall pay to Respondent the sum of $13,000.00 for commissions lost in the transition between the closing of Claimants’ Idaho Falls, Idaho office and Respondent’s new employment. Claimants are jointly and severally liable for and shall pay to Respondent interest on the amount of $13,000.00 at the Idaho statutory rate of 5.25% per annum accruing from the date of service of this award until the award is paid in full. |
| 10-05731 | Morgan Stanley & Co., LLC | Barney Greengrass | Claimant’s claims are denied in their entirety. Respondent’s counterclaims are denied in their entirety. |
| 10-04635 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Paul Corkin Tanner | Respondent shall pay nothing to Claimant on the Statement of Claim. The Panel determined that the set-offs of Respondent exceeded the total damages claimed by Claimant which consisted of principal, interest, attorneys’ fees and costs. Claimants shall pay nothing to Respondent on the Counterclaim. The Panel treated the Counterclaim solely as setoffs against the assigned promissory note. The Panel determined that Claimant’s request for attorneys’ fees was moot because Respondent’s set-offs exceeded the total amount of Claimant’s requested damages including the amount Claimant requested in attorneys’ fees. Claimant is liable and shall pay to Respondent the sum of $600.00 representing reimbursement of the non-refundable portion of the counterclaim filing fee previously paid by Respondent to FINRA. |
| 11-03407 | Morgan Stanley Smith Barney LLC; Morgan Stanley Smith Barney FA Notes Holdings LLC | Jorge Antonio Carreras | Claimants’ claims against Jorge Antonio Carreras and Carlos Javier Molina are denied in their entirety. Claimants are liable for and shall pay to Mr. Carreras compensatory damages in the amount of $655,786.56. Claimants are liable for and shall pay to Mr. Molina compensatory damages in the amount of $834,637.44. |
| 12-00103 | RBC Capital Markets, LLC | Emmett Johnson | Respondent is liable for and shall pay to Claimant the sum of $293,200.00 in compensatory damages; Respondent is liable for and shall pay to Claimant the sum of $27,400.00 in attorneys fees; Respondent is liable for and shall pay to Claimant the sum of $7,266.00 in costs; Respondent is liable for and shall pay to Claimant interest on the above-stated sums in #1, 2 and 3 at the rate of 2.93% per annum from and including 11/1/2012 through and including the date this Award is paid in full; Claimant is liable for and shall pay to Respondent the sum of $20,040.00 in attorneys fees; Claimant is liable for and shall pay to Respondent, the sum of $3,840.00 in costs; Claimant is liable for and shall pay to Respondent interest on the above-stated sum in #5 and 6 at the rate of 2.93% per annum from and including 11/1/2012 through and including the date this Award is paid in full. |
| 11-00911 | Merrill Lynch, Pierce, Fenner & Smith, Inc. | Barbara Jean Horvath | Horvath is liable and shall pay Merrill Lynch the amount of $418,344.19 for the principal balance due on the Note, plus accrued interest in the amount of $20,523.51 at the rate of 2.95% per annum from 2/23/2011 to 10/23/2012. Merrill Lynch is liable and shall pay Horvath the amount of $1,235,000.00 in compensatory damages. Merrill Lynch’s award in the aggregate amount of $438,867.70 is an offset to Horvath’s award. Accordingly, Horvath’s obligations are extinguished by the offset. As such, Merrill Lynch is liable and shall pay to Horvath $1,235,000.00 minus $438,867.70 for a net amount due to Horvath of $796,132.30. |
| 11-00501 | Ameriprise Financial Services, Inc. | Nicoli Gay Grove | Claimant’s claim, each and all, are hereby denied and dismissed with prejudice; The Counterclaim of Nicoli Gay Grove is denied and dismissed with prejudice. |
| 11-03993 | Oppenheimer & Company, Inc. | Todd Lambert Hallquist | Claimant’s claim, each and all, are hereby denied and dismissed with prejudice; Respondent’s counterclaims, each and all, are hereby denied and dismissed with prejudice. |
| 11-01774 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Adam David Sloan | Claimant’s claims are denied in their entirety. |
| 11-02442 | Deutsche Bank Securities, Inc. | Jon Paul Borro Javellana and Kenneth Ro | Javellana is liable for and shall pay to DBSI the amount of $503,550.28 for Javellana Note 1 and Javellana Note 2. Ro is liable for and shall pay to DBSI the amount of $170,643.44 for Ro Note 1 and Ro Note 2. DBSI is liable for and shall pay to Ro damages in the amount of $25,000.00. DBSI is liable for and shall pay to Ro damages in the amount of $25,000.00. Barclays is liable for and shall pay to Javellana damages in the amount of $25,000.00. Barclays is liable for and shall pay to Ro damages in the amount of $25,000.00. |
| 11-02681 | UBS Financial Services, Inc. | William H. French, III | Respondent is liable for and shall pay to Claimant the sum of $17,103.45 in compensatory damages; Respondent is liable for and shall pay to Claimant the sum of $5,184.66 in accrued interest; Respondent is liable for and shall pay to Claimant the sum of $10,671.38 in attorneys fees and costs pursuant to the terms of the Notes; Claimant is liable for and shall pay to Respondent the sum of $7,833.34 in compensatory damages. |
| 11-02340 | UBS Financial Services, Inc. | Michael Antoine Rooms | Claimant’s claims are denied in their entirety. |
| 10-04080 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Robert James Reilly | Claimant’s claims are denied in their entirety. Respondent’s counterclaims are denied in their entirety. |
| 11-01681 | Wells Fargo Advisors, LLC | Randall A. Fisher | Respondent is liable for and shall pay to Claimant the net sum of $48,172.61 in damages. The aforementioned sum incorporates the following findings: Respondent to pay Claimant the principal balance due on the promissory note in the amount of $530,644.45; Respondent to pay Claimant pre-award contract rate interest in the amount of $1,391.28; Respondent to pay Claimant pre-award default rate interest in the amount of $109,424.64; Respondent to pay Claimant $96,252.00 in attorneys fees pursuant to the terms of the contract; Respondent to pay Claimant $1,552.24 in costs; Claimant to pay Respondent $594,840.00 in compensatory damages and Claimant to pay Respondent $96,252.00 in attorneys fees pursuant to statute. |
| 11-01644 | Morgan Stanley Smith Barney, LLC | Richard P. Swetish | Claimant’s claims, each and all, are hereby denied and dismissed with prejudice; Claimant is liable for and shall pay to Respondent the sum of $15,446.00 in compensatory damages; Claimant is liable for and shall pay to Respondent interest on the above-stated sum at the rate of 6% per annum from and including 8/31/10 through and including the date this Award is paid in full; Claimant is liable for and shall pay to Respondent the sum of $3,000.00 in attorneys’ fees |
| 11-02038 | Merrill Lynch, Pierce, Fenner & Smith, Inc. and Merrill Lynch International Finance, Inc. | Scott Vincent Hartshorn | Respondent to pay Claimants compensatory damages of $106,681.20; Respondent to pay Claimants attorneys fees of $25,000.00; Respondent to pay Claimants costs of $10,000.00; Claimants are jointly and severally liable for and shall pay Respondent compensatory damages of $60,000.00; Respondent’s award for compensatory damages of $60,000.00 is an offset to Claimants’ award of compensatory damages. As such, Respondent is liable for and shall pay to Claimants compensatory damages in the amount of $106,681.20 minus $60,000.00 awarded to Respondent, for a net amount due Claimants of $46,681.20 in compensatory damages. |
| 10-04117 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Gregory Alan Weiss | Weiss is liable for and shall pay to Lehman $785,714.29 in compensatory damages; Lehman to pay Weiss $61,378.95 in compensatory damages. This Award is subject to an offset as described in item 3 below. Lehman’s obligations are extinguished by the offset. Weiss’s award of $61,378.95 is an offset to Lehman’s award. As such, Weiss is to pay Lehman $785,714.29 minus $61,378.95 awarded to Weiss, for a net amount due to Lehman of $724,335.34. Weiss to pay Lehman interest on the net amount due to Lehman of $724,335.34 in the amount of $105,072.00. Weiss is liable for and shall pay to Lehman the amount of $75,271.70 in attorneys fees pursuant to the Note. |
| 10-04115 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Kevin R. Kramer | Kramer to pay LBHI compensatory damages in the sum of $428,571.43. LBHI to pay Kramer compensatory damages for his CC in the sum of $83,794.61, which includes interest. Kramer’s award of $83,794.61 is an offset to LBHI’s award. Accordingly, LBHI’s obligations are extinguished by the offset. As such, Kramer is liable for and shall pay to LBHI $428,571.43 minus $83,794.61 for a net amount due to LBHI of $344,776.82. Kramer is also to pay LBHI interest on the aforementioned reduced award of $344,776.82 at the rate of 3% per annum accruing from 9/15/2008 until the damages amount of $344,776.82 is paid in full. Kramer to pay LBHI attorneys fees of $86,212.93 pursuant to the terms of the promissory note. |
| 11-01520 | UBS Financial Services, Inc. | Gustavo A. Del Valle | Respondent to pay Claimant compensatory damages of $49,556.14 and pre-judgment interest of $3,988.77 and post-judgment interest which shall begin to accrue on the principal balance on the date of judgment and shall continue until payment in full of the principal and interest. Claimant is liable for wrongful termination, retaliation for whistleblowing, disability discrimination pursuant to the American with Disabilities Act and disability discrimination pursuant to Puerto Rico statute and shall pay Respondent compensatory damages in the sum of $300,000.00 and exemplary damages in the sum of $300,000.00 as provided by Puerto Rico law 80 due to the unjustified dismissal of Respondent and for punishing Respondent for whistleblowing. |
| 10-03332 | UBS Financial Services, Inc. | Milton K. Harkrader, III | Claimant’s claims are denied in their entirety. |
| 10-01915 | Merrill Lynch International Finance, Incorporated and Merrill Lynch, Pierce, Fenner & Smith, Inc. | Enrique Hurtado | Respondent to pay Claimants compensatory damages of $131,753.42 representing the Note balance, plus interest of $3,996.27, accrued at the rate of 3% per annum from 4/1/2010 (the first day Respondent no longer worked for Claimant) until 4/5/2012 (the last FINRA hearing day). Respondent is contractually liable pursuant to the Note for “reasonable” attorneys fees and shall pay to Claimant $33,937.42, representing 25% of the principal and interest ($135,749.69). Claimants are jointly and severally liable on the CC for constructive discharge and shall pay to Respondent compensatory damages of $72,113.00 representing the “FACAAP benefit at $9.00/share and $48,739.35, representing the “Growth Award Plan” benefit. Additional damages of $131,753.42 in an amount equal to the “balance of the Note” are denied. Respondent prevailed one 1 of 5 claims, totaling 20%. Accordingly, pursuant to paragraph 6 of the November 13, 2008 Amended Advisor Transition Program Agreement, Claimants are jointly and severally liable for and shall reimburse Respondent the sum of $24,170.47 in attorneys fees, representing 20% of the damages awarded ($72,113.00 + $48,739.35 = $120,852.35). Claimants are jointly and severally liable for and shall reimburse Respondent the sum of $10,000.00 representing Respondent’s CPA’s expert witness fee for exhibit and testimony, the amount of which is in the testimonial record. |
| 10-02527 | Citigroup Global Markets, Inc. | George Chris Sinanis | Citigroup’s claims are denied in their entirety. Citigroup is liable for and shall pay to Sinanis the sum of $25,000.00 for lost production. Citigroup to pay Sinanis $48,896.40 for lost trailing income. Citigroup to pay Sinanis $30,000.00 for attorneys fees pursuant to the promissory note attorneys fees clause and reciprocity of attorneys fees. Citigroup to pay Sinanis on the sum of the aforementioned award amounts totaling $103,896.40 at the rate of 10% from the date of service of the award until the date the award is paid in full. |
| 10-04602 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Jack Petersen | Claimant’s claims are denied in their entirety. |
| 10-04775 | Morgan Keegan & Company, Inc. | Alejandro Rotundo | With respect to Claimant’s claims against Respondent: (1) Promissory note – an award is made in favor of Claimant and against Respondent in the amount of $13,370.00 (inclusive of prejudgment interest) plus interest at the Florida statutory rate accruing from the date of the Award until paid in full; (2) Expense Reimbursement – an award is made in favor of Claimant and against Respondent in the amount of $720.00 plus interest at the Florida statutory rate accruing from the date of the Award until paid in full; and (3) Contribution/Indemnification – an award is made in favor of Claimant and against Respondent in the amount of $214,315.00 plus interest at the Florida statutory rate from the date of the Award until paid in full. With respect to Respondent’s claim against Claimant: Defamation – an award is made in favor of Respondent and against Claimant in the amount of $500,000.00 plus interest at the Florida statutory rate accruing form the date of the Award until paid in full. |
| 11-03620 | Obsidian Financial Group | Stuart A. Jeffery | Claimant’s claims are denied in their entirety. |
| 09-02937 | Banc of America Investment Services, Inc. | Jonathan Berstein | Berstein is liable on the promissory note and shall pay to Claimant $152,627.15 as compensatory damages. Claimant is liable on the claim of breach of contract relating to the suitability of Berstein’s work environment while employed with Claimant and shall pay to Respondent the sum of $152,627.15 as compensatory damages. |
| 11-04599 | Lehman Brothers Holdings Inc., as assignee of Lehman Brothers, Inc. | Jeremy St. Jean | Claimant’s claims are denied in their entirety. |
| 10-04687 | Merrill Lynch Group, Inc., Merrill Lynch International Finance, Inc., Merrill Lynch Pierce Fenner & Smith Inc. | Thomas Anthony Zur | Respondent to pay Claimant $58,200.00. Respondent to pay to Claimant the sum of $128,479.97. Respondent to pay Claimant interest until March 8, 2012 in the sum of $5,734.08. Additional interest on the promissory note shall accrue at the rate of 3% per annum from March 9, 2012 until paid. Claimant to pay Respondent $12,500.00 on its claim for tortious and retaliatory conduct. |
| 09-06280 | Merrill Lynch, Pierce, Fenner & Smith, Inc. | Jolie Ann Bales | Claimant’s claims against Respondent Bales are denied in their entirety. The Promissory Notes executed by Respondent Bales is hereby canceled. Respondent Bales’ CCs are denied in their entirety. |
| 11-02668 | Morgan Stanley Smith Barney | Frank Douglas Petersen | Claimant’s claims are denied in their entirety. |
| 09-06810 | Wells Fargo Advisors, LLC | Kent Robert Elliott | Respondent to pay Claimant $631,743.56 in compensatory damages. Respondent to pay Claimant interest from 1/5/09-1/31/2012 in the sum of $135,753.10. Respondent to pay Claimant attorney fees in the amount of $150,729.46 pursuant to contractual authority. Respondent to pay Claimant $1,250.00 in filing fees. Claimant to pay Respondent compensatory damages of $141,317.29 (which includes deferred compensation of $129,871.69 and Met Life Trailers of $11,445.60 including interest). Accordingly, Respondent to pay Claimant damages in the net sum of $778,158.83. Respondent to pay Claimant post-judgment interest on the aforementioned award portion of $631,743.56 at the rate of $121.10 per day accruing from 2/1/2012 until the sum of $631,743.56 is paid in full. |
| 09-07223 | UBS Financial Services Inc. | Pericles Gregoriou | Respondent is found not liable on all of Claimant UBS’s claims for relief. Claimant UBS are found not liable on all of Respondent’s claims for relief. |
| 11-02656 | UBS Financial Services, Inc. | Michael L. Deverich | Claimant’s claims are denied in their entirety. |
| 10-02065 | Merrill Lynch, Pierce, Fenner & Smith Inc. | Andrew Williams | Respondent to pay Claimant $500,507.36 in compensatory damages; Respondent to pay Claimant interest on the above-stated sum from 1/8/10 to 12/8/11 in the amount of $50,105.60. In addition, interest on the above-stated sum will accrue after 12/8/11 until this Award is paid in full pursuant to the rate determined by Texas law; Respondent to pay Claimant the sum of $88,134.69 in attorneys fees pursuant to the terms of the Note; With respect to the CC, Claimant to pay Respondent $200,000.00 in compensatory damages; With respect to the CC, Claimant to pay Respondent $80,000.00 in attorneys fees pursuant to the terms of the Employment Agreement of the parties. |
