An irreverent Wall Street Blog
by Bill Singer
 
Join BrokeAndBroker blog on Facebook  Follow the BrokeAndBroker blog on Twitter  Connect with BrokeAndBroker on LinkedIn  Join Bill Singer on Google+  Subscribe to RSS Feed

Janney Montgomery Scott Wins $2.4 Million Raiding Case
Written: November 21, 2012

A picture taken on February 8, 2011 in Rennes,...

In a Financial Industry Regulatory Authority (“FINRA”) Arbitration Statement of Claim filed in May 2011, Claimant Janney Montgomery Scott alleged that respondents Hunter Associates and McCulloch had  raided Janney’s Salem, OH branch office by taking the entire branch management team, all financial advisors, and all other key personnel to open and staff a new branch office built  by Hunter Associates. The purportedly deliberate and malicious raid and other acts of unfair competition by the respondents imposed severe financial and reputational harm upon Claimant for which it sought $3,000,000 in compensatory damages plus unspecified punitive damages, costs, and fees. Claimant also sought the return of various records and documents. In its claim, Claimant asserted civil conspiracy against both respondents and additional causes of action against:

Respondent Hunter Associates:

  • raiding/unfair competition
  • tortious inducement of breaches of fiduciary duty
  • tortious interference with actual and prospective business relationships

Respondent McCulloch:

  • breach of fiduciary duty

Respondents generally denied the allegations; asserted various affirmative defenses; and filed aCounterclaim asserting:

  • breach of contract for unpaid compensation;
  • defamation;
  • unfair competition; and
  • breach of contract violations of the Protocol for Broker Recruiting.

The Counterclaim raised allegations that Claimant had

  • failed to pay Respondent McCulloch his deferred compensation;
  • published false and defamatory statements to clients; and
  • failed to fulfill its obligations under the Protocol by prosecuting this action.

The FINRA Arbitration Panel found Respondents jointly and severally liable and ordered them to pay to Claimant $2,400,000.00 in compensatory damages plus 6% per annum post -judgment interest. The Counterclaim was dismissed with prejudice. In the Matter of the FINRA Arbitration Between Janney Montgomery Scott LLC, Claimant/Counter-Respondent, vs. Hunter Associates, Inc. and Robert S. McCulloch III,Respondents/Counter-Claimants (FINRA Arbitration 11-02078, November 9, 2012).

Bill Singer’s Comment

Wall Street‘s landscape has always been filled with contentious disputes between and among the likes of Merrill Lynch, JP Morgan, UBSMorgan Stanley,  Wells Fargo, and so many other names no longer with us, merged into the ranks of competitors, or still hanging in there. Firms come and go but among the constants are the impetus to cannibalize business; to engage in hardball tactics to jam up those who get in your way; and to pull out all the stops, legal or otherwise, compliant or otherwise, ethical or otherwise.

It’s a tough Street. Always has been. Always will be. Not the pavement for the faint of heart.

READ “Street Sweeper” columns on raiding, unfair competition, and the Protocol:

Also, READ Wall Street Recruiter CraigEnderlin’s 2013 Job Forecast


 
[^top^]

Previous Entries
July 26, 2014
Broker Slips And Counter Punches Public CustomerJuly 25, 2014If you've been a stockbroker long enough, it's likely that some customer will file a laws... Read On
July 25, 2014
If you've been a stockbroker long enough, it's likely that some customer will file a lawsuit against you and your firm. Frankly, you may have screwed ... Read On
July 24, 2014
In a Financial Industry Regulatory Authority (“FINRA”) Arbitration Statement of Claim filed in May 2013, public customer Claimant Meadows asserted cau... Read On
July 23, 2014
This one ain't pretty and there's sure as hell nothing here to laugh about. In 2012, a stockbroker finds himself charged with felony child molestation... Read On
July 22, 2014
Stockbroker, Compliance, Legal, and Regulatory JobsEmployment Page BrokeAndBroker.com Jobs#wallstreetjobs @brokeandbrokerNOTICE TO EMPLOYERS... Read On
July 21, 2014
The customer says: Listen, I'm on the road and can't do it. Go ahead and sign my name. It's okay. The stockbroker is uneasy and asks: You su... Read On
July 19, 2014
Stockbroker Whiffs On Three Email StrikesJuly 18, 2014How nice. How convenient. Customers can actually send emails to their brokerage firms and ask fo... Read On
BrokeAndBroker.com Job Search
Related Topics
Tag Cloud
Internet FINRA Bear Stearns Bloomberg SEC NASD NYSE Money Laundering Due Diligence Waiver Forbes China Chepucavage Broy Woody Allen Madoff NAC NPR Marketplace Stanford UBS Ketchum Antitrust NASDAQ RRBDLAW Schapiro Bill Singer BrokerAndBroker USERRA Brokeandbroker.com Morgan Keegan Arbitration Counterclaim BrokeAndBroker.com Khuzami BrokeAndBroker Aleynikov Goldman Sachs brokeandbroker Promissory Note U4 Bill SInger EFL CFTC Huffington Post Flash Crash arbitration RBC RRBDLAW.com Ponzi Affinity Fraud Wachovia Raymond James BrokeandBroker.com Expungement Fraud Securities Fraud Outside Business Activity Registered Rep Magazine FOREX BrokerAndBroker.com FBI Banc of America Pro Se Supreme Court Morgan Stanley Smith Barney E*Trade Margin email Galleon Penson U5 Defamation Protocol Wells Fargo Punitive Damages Citigroup Merrill Lynch ARS Employee Forgivable Loan Street Legal Morgan Stanley AWC Fidelity Bankruptcy Broke And Broker HFT David Sobel Day Trading Ameriprise Commissions Spouse Schwab Commission CRD Kenneth Starr IRS CNBC Complaint ATM Skimming Hacking Phishing Malware Naskovets Poteroba Koval Lincoln Financial Selling Away Outside Business Activities Rakoff 2nd Circuit Second Circuit IRA 401k Forgery Tax RRBDlaw.com Email Netschi Moore Whistleblower Street Sweeper Tran Bharara Facebook Online Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America Department of Justice Elles Bribe Auction Rate Securities Raiding Spam Edward Jones Medicare Diabetes Dow Schumer Walter Bid Rigging Real Estate Discrimination Wall Street Statutory Disqualification Form U4 Form U5 Indictment Boyland DOJ Corruption bill singer FTC Do Not Call FINRA Arbitration Costa Rica Settlement LIBOR Varney Plea Rule 8210 RRBDlaw Appeal Fowler LPL Johnson US Airways Reg D MSSB Vault Loan SunTrust Discovery Employment Rosenthal Recruiting Lawyer Trading Platform JP Morgan Employment Tuesday Wrongful Termination Bank Guarantee WaMu Solicitation REIT Martin Credit Cards Away Account Credit Repair PN Advisor Placement Group Forex Mortgage Private Placement Moon Merrill Anderson Exam Lee Borrowing Tax Lien Conversion Oppenheimer Wedbush Felony Misdemeanor Expenses ING Lien OTR Estate Jobs Florida Credit Card Elderly Flash Drive Annuity FNMA BrokeAndBroke TIC DWI Promissory Notes Suitability Will POA Power of Attorney Casino NSF MF Global Counterfeit Preet Bharara Corzine Hacker RIA Prison Disclosure NASAA Aguilar FCPA Subway Identity Theft Gold Dell Bar Injunction Bank Deutsche Bank God HSBC Private Placements Eric Stein Wire Fraud CCO Joshua Brown Backstage Wall Street Obstruction of Justice Retaliation Variable Annuity Outside Account Options Telephone Wine Social Media ADA Pacifico Non-Prosecution Agreement Confirm Tax Fraud Retirement OBA Equity Indexed Annuities EIA MetLife Continuing Education OIP Tax Liens Willful CE Unregistered Impersonation Annuities BBVA Business Expenses ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Impersonator Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks RMBS PST Solicited Unsolicited Congress SRO Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement employment jobs Great Recession Chase Investment Services Arrest Barclays Liens Failure To Supervise Apple Time And Price T&P Husband Letter of Authorization LOA Sexism Knight Test Practice Sale Unfair Competition Signature Judgments Undisclosed Settlement Trainee Fee Trust Laser Side Bar Mattera Female Sales Assistant Kennedy Charge Sexist NML Argentina Embezzlement Silver Judgment Bank Fraud Deceased TSSB Trustee Frumento Conspiracy 6th Circuit Proctor Rule 3040 Class Action Beneficiary NYAG Schneiderman Gallagher White Compromise Website TRO Supervision SDNY Piwowar Rule 1122 Article V signature VA Rule 3270 OWB
 
Email Bill Singer Connect with Bill Singer on Facebook Follow Bill Singer on Twitter Link up with Bill Singer on LinkedIn Join Bill Singer on Google+