Wedbush In Battle Royal With Former Employee

May 30, 2013

In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in November 2011, Claimant Wedbush Securities Inc. asserted breach of contract, an equitable claim for money loaned, and unjust enrichment, in connection with five loans the firm had made to Respondent Hansen during her employment.  Claimant sought $85,000.00 in principal plus interest, and fees. In the Matter of the FINRA Arbitration Between Wedbush Securities Inc., Claimant/Counter-Respondent, vs. Holly Joy Hansen, Respondent/Counter-Claimant/Third Party Claimant v. Gary Lance Wedbush and Edward William Wedbush, Third Party Respondents (FINRA Arbitration  11-04491, May 22, 2013)

Respondent Hansen generally denied the allegations, asserted various affirmative defenses, and filed a Counterclaim and a Third-Party Claim. Hansen asserted against Claimant Wedbush Securities breach of contract, fraud, unlawful termination, violation of state labor code, and unfair business practices; and she also asserted fraud against Respondents Gary and Edward Wedbush. At the close of the hearing, Hansen requested total damages of $1,421,261.00.

At the start of the evidentiary hearing, Holly Joy Hansen dismissed Gary Lance Wedbush from the matter with prejudice.

Award

The FINRA Arbitration Panel found 

Respondent Hansen liable to and ordered her to pay $85,000 to Respondent Wedbush Securities Inc.

Claimant Wedbush Securities liable to and ordered it to pay to Respondent Hansen: 
  • $108,850 on her Counterclaim (resulting in an offset and net liability by Claimant of $23,850.);
  • 10% per annum interest on $23,850 00 at the rate of 10% per annum from the date of service of this award until paid in full; and
  • $267,617.09 in attorneys' fees and costs 
Third Party Respondent Edward William Wedbush liable to and ordered him to pay to Respondent Hansen $7,200.00 in attorneys' fees and costs in association with Hansen's Motion for Attorneys' Fees and Costs for respondent's deposition. Respondent Hansen's claims against Edward William Wedbush for fraud are dismissed.