In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in February 2011, Claimant Hurtado asserted breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, intentional infliction of emotional distress, negligent infliction of emotional distress, negligence, breach of contract, defamation, libel and/or slander, tortuous interference with a contract and prospective business relations, false imprisonment, and wrongful termination. Claimant sought damages, costs, and fees - and the expungement of her Form U5. In the Matter of the FINRA Arbitration Between Claudia M. Hurtado, Claimant, vs. Chase Investment Services Corp.,Respondent (FINRA Arbitration 11-00875, July 27, 2012).
SIDE BAR: According to online FINRA forms as of July 30, 2012, Respondent Chase Investment Services informed FINRA that it had 'Discharged" Claimant Hurtado on April 30, 2010 and stated that:
TERMINATED BY AFFILIATE BANK - NON SECURITIES RELATED. FIRM DETERMINED THAT REGISTERED REP USED ANOTHER EMPLOYEES ID TO ORDER ATM CARDS FOR A BANK CUSTOMER WHO DID NOT REQUEST THEM AND SUBSEQUENTLY THERE WERE ATM TRANSACTIONS ON THE CUSTOMER ACCOUNT TOTALING APPROXIMATELY $36,000. REGISTERED REP DENIES THESE ALLEGATIONS.
In February 2012, Claimant filed a Notice of Discontinuance with Prejudice of all claims except her expungement request.
The FINRA Arbitration Panel recommended on Claimant Hurtado's Form U5 as filed by Respondent Chase Investment Services, that the 'Reason For Termination" should be changed to "Othe)r" and the accompanying "Termination Explanation" be revised to state:
"After initially terminating Claudia Hurtado for an alleged violation of the firm's Policies and Procedures (not securities related), the FINRA arbitration panel determined that the firm had not proven that Claudia Hurtado had violated the firm's Policies and Procedures."
The Panel further recommends that the answers to the Internal Review Disclosure Reporting Page Section 3 and Termination Disclosure Reporting Page Section 4 in the above Form U5 be expunged and replaced with the above replacement language. The panel further recommends that the answers to the Internal Review Disclosure Reporting Page Section 5(B) and Termination Disclosure Reporting Page Section 2 in the above Form U5 be expunged and changed to Employment Terminated for Other Reasons.
Bill Singer's Comment
Nice bit of legal work by Hurtado's lawyer: Vincent Imbesi, Esq., Weiss Imbesi PLLC, New York, New York (now Imbesi Christensen & Michael).