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FBR Capital Markets Loses Commission Dispute
Written: March 22, 2013

Statue of Lady Justice in Frankfurt

In a Financial Industry Regulatory Authority (“FINRA”) Arbitration Statement of Claim filed in March 2012, Claimants Hans and Doyle sought unpaid commissions. In the Matter of the FINRA Arbitration Between Peter D. Hans and Scott J. Doyle, Claimants, vs. FBR Capital Markets & Co.,Respondent (FINRA Arbitration 12-01131, March 20, 2013).

In their pre-hearing brief. Claimants requested the following:

Claimant Hans:

  • $110,026.00 for the commission on the cash fee plus five years of interest at 6% per annum ($33,008.00); and
  • $239,250.00 for the commission on the stock fee plus two years of interest at 6% per annum ($28,710.00)

Claimant Doyle:

  • $239,250.00 for the commission on the stock fee plus two years of interest at 6% per annum ($28,710.00).

Respondent FBR generally denied the allegations and asserted various affirmative defenses.

Moving Along

In October 2012, Respondent FBR filed a Motion to Dismiss, asserting, among other things, that Claimant Doyle had previously released his claims through a severance agreement with Respondent in which the payment of trailing commissions and/or the granting of shares of stock were addressed. In response, Claimant Doyle disputed that he had released his claim to trailing commission. In November 2012, the FINRA Arbitration Panel denied the Motion without prejudice.

Award

The FINRA Hearing Panel found Respondent FBR liable and ordered it to pay to:

  • Claimant Hans: $239,250,00 in compensatory damages plus pre-judgment interest in the sum of $28,710.00.
  • Claimant Doyle: $239,250,00 in compensatory damages plus pre-judgment interest in the sum of $28,710.00.

Also see these cases involving industry disputed commissions:

READ Bill Singer‘s analysis of a recent high-profile federal prosecution of a credit repair conspiracy: ”Credit Repair Scam Ends With Pleas And Prison


 
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