In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in April 2011, Claimants asserted causes of action for:
Claimants sought four categories of compensatory damages for:
In the Matter of the FINRA Arbitration Between Tullett Prebon Financial Services LLC and Tullett Prebon Americas Corp., Claimants, vs. BGC Financial, L.P., Michael Palladino, Anthony S. Arcabascio, Richard Lester Clarkson, Charles Michael Comparetto, Gregory James Golden, Timothy Michael Horan, Thomas Edward Killeen, Pierce James Ryan, and Robert Andrew Steiniger,Respondents (FINRA Arbitration 11-01413, January 11, 2013).
At the hearing, Claimants requested compensatory damages in the amount of $16,312,855.00, and sought exemplary damages for the allegedly willful and malicious acts by Respondent BGC, plus costs, expenses, interest, and attorneys' fee. Also, Claimants sought a permanent injunction against:
Finally, Claimants asked that all Respondents be referred to the enforcement divisions of FINRA or the SEC for appropriate actions
Respondents' Side Of Things
Respondents generally denied the allegations, asserted various affirmative defenses, and filed a Counterclaim in which the employee respondents asserted causes of action for:
The FINRA Arbitration Panel denied Claimants' claim and found Claimants liable and ordered them to pay to Respondents the following compensatory damages:
When you demand over $16 million in damages arising from the alleged wrongful raiding of your firm, you'd sort of think that the Claimants would come to the hearings with some cannon balls rather than mere powder and wadding. From the terse dismissal by the FINRA arbitrators, it doesn't seem that Claimants had much of a broadside. On the other hand, Respondents' boarding party seems to have taken the enemy.
Wall Street's landscape has always been filled with contentious disputes between and among the likes of Tullet Prebon and BGC Financial - and the pugilistics often involve such combatants as Merrill Lynch, JP Morgan, UBS, Morgan Stanley, Wells Fargo, and 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 in the biz 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: