Following a week-long hearing, a three-person Panel of Arbitrators dismissed Claimant's allegations that WSHB's client violated several provisions of state and securities laws, seeking $1.4 million in damages, in favor of our client.
Claimant's Statement of Claim alleged that our client engaged in fraudulent sales tactics; conducted unauthorized trading in liquidating Claimants' Individual Retirement Accounts; and fraudulently represented to Claimants that he was reinvesting their brokerage account and failed to do so, all in violation of the antifraud provisions of federal and state securities laws. At the close of the Hearing, Claimants requested damages in the amount of $1,405,306.96 for compensatory damages, interest, and unearned management fees. Additionally, Claimants’ counsel filed a Motion for Attorneys Fees and Costs for an additional $475,731.69.
Following the hearing, the Panel submitted an award, denying all of Claimants’ allegations against our client in their entirety and denying Claimants’ Motion for Attorney’s Fees and Costs. With the impending doom of a violation of state and federal securities violations against him, our client was in the process of selling his financial practice. Now, with a full dismissal, our client is ecstatic and feels as though he can continue his career in finance.
Partner, Michelle Arbitrio, and Senior Associate, Meghan Hook, who are leading trial and appellate attorneys in WSHB’s National FINRA Securities Practice, successfully convinced the Panel that our client did not engage in fraud and instead, provided a well-reasoned, thoughtful recommendation to liquidate Claimants' accounts during the unexpected turmoil of Covid-19.
For additional information about the case, please see In the Matter of the Arbitration Between Brigadier General William Blake Crowe and Lynne Crowe, Claimants, v. Lincoln Financial Advisors Corporation and Thomas James Prieur, Respondents (FINRA Arbitration Award 21-02340).