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

Wells Fargo Wins FINRA Hostile Work Environment Promissory Note Arbitration
Written: April 29, 2013

In a Financial Industry Regulatory Authority (“FINRA”) Arbitration Statement of Claim filed in March 2011, and as amended thereafter, Claimant Wells Fargo Advisors, LLC  asserted 
  • breach of contract; 
  • unjust enrichment; 
  • conversion; and
  • breach of fiduciary duty
in connection with Respondent Farr’s employment. Claimant sought $203,213.53 in compensatory damages, punitive damages, costs, attorneys' fees, and pre-judgment interest. In the Matter of the FINRA Arbitration Between Wells Fargo Advisors, LLC, Claimant, vs. Douglas T. Farr, Respondent (FINRA Arbitration 11-00908, April 25, 2013).

Respondent Farr generally denied the allegations, asserted various affirmative defenses, and asserted a Counterclaim, which alleged:
  • misrepresentation; 
  • change of pay grid; 
  • alienation; and
  • hostile work environment. 
In his Counterclaim, in addition to punitive damages, interest, attorneys’ fees, fees, and costs, Respondent Farr sought at least: 
  • $35,000 for loss of assets; 
  • $100,000 for lost income; 
  • $100,000 for loss of future business earnings, and 
  • $350,000 for  loss of income and bonuses.
Award

The FINRA Arbitration dismissed with prejudice Respondent's Counterclaim; and found Respondent Farr liable and ordered him to pay to Claimant Wells Fargo:
  • $199,777.13 in compensatory damages:
  • $34,114.16 pre-judgment interest at the rate of 7.35% from October 20, 2010, through April 16, 2013;
  • $75,000.00 in attorneys’ fees; and 
  • $21,718.47 in costs.
Bill Singer's Comment

Not a particularly complicated case but one that I offer to show the various causes of action asserted in defense of these promissory note / Employee Forgivable Loan ("EFL") disputes. Registered representatives may nod a knowing head when they read about such complaints as changed pay-out girds and hostile work environments. 

Notwithstanding, RRs should also note that the $203,000 in damages sought by Claimant Wells Fargo ultimately mushroomed into about $331,000 in total damages, interest, fees, and costs -- about a 63% premium to Respondent Farr as the cost of trying the case.  Moreover, Respondent likely incurred considerable attorneys' fee, costs, and expenses of his own in taking the dispute to verdict.

Also READ:


 
[^top^]

Previous Entries
April 22, 2014
Stockbroker, Compliance, Legal, and Regulatory JobsEmployment Page BrokeAndBroker.com Jobs#brokeandbroker #billsinger #wallstreetjobs&n... Read On
April 21, 2014
I fully appreciate that FINRA has a legitimate concern about industry personnel impersonating customers. I also understand why it is appropriate in th... Read On
April 19, 2014
Will This Tax Season Lien On You?April 18, 2014We just made it through another tax season. The good news is that you filed and are fully paid up -- or... Read On
April 18, 2014
We just made it through another tax season. The good news is that you filed and are fully paid up -- or, the bad news is that you didn't file or you h... Read On
April 17, 2014
In this digital age there are still folks who physically cut-and-paste. How quaint. Of course, quaint or not, when you start using the terms "cut-and-... Read On
April 16, 2014
Here's an interesting cocktail of facts: an IRA, a mother, powers of attorney, and a stockbroker son. Add into that mix questions about whether a $60,... 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 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 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 Severance Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America 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 Prison NASAA Aguilar FCPA 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 Impersonation Annuities BBVA Business Expenses OIP ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks PST Solicited Unsolicited Congress SRO Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement employment jobs Great Recession Chase Investment Services Barclays Willful 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 Sexist Argentina Judgment Bank Fraud TSSB Trustee Frumento 6th Circuit Proctor Beneficiary NYAG Schneiderman Gallagher White Compromise Website Supervision Piwowar Tax Liens signature VA
 
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+