[T]he causes of action related to Claimant's allegation that, immediately upon funding her account, Respondents improperly used Claimant's money to fund a down payment for the refinancing of a mortgage for the benefit of Claimant's now ex-husband. Claimant further alleged that Respondents subsequently moved her remaining funds into a Type 2 account and used those funds for trading on margin and purchasing municipal bonds, in order to conceal the transfer for the down payment. Claimant asserted that these actions were unauthorized, manipulative, and deceptive and, as a direct result, she suffered substantial economic harm.
Respondent J.P. Morgan liable and ordered it to pay to Claimant Hamm $102,565.09 in compensatory damages plus interest; and $600 FINRA filing fee.Respondent Kuebler liable and ordered him to pay to Claimant Hamm $11,396.12 in compensatory damages plus interest.
Claimant Hamm: $2,000 Initial Claim Filing FeeRespondent J.P. Morgan: $3,025 Member Surcharge; $6,175 Member Process Fee; $400 Discover-Related Motion Fees; $19,600 Hearing Session Fees
FINRA Rule 12104: Effect of Arbitration on FINRA Regulatory Activities; Arbitrator Referral During or at Conclusion of Case(a) Submitting a dispute to arbitration under the Code does not limit or preclude any right, action or determination by FINRA that it would otherwise be authorized to adopt, administer or enforce.(b) During the pendency of an arbitration, any arbitrator may refer to the Director any matter or conduct that has come to the arbitrator's attention during a hearing, which the arbitrator has reason to believe poses a serious threat, whether ongoing or imminent, that is likely to harm investors unless immediate action is taken. Arbitrators should not make referrals during the pendency of an arbitration based solely on allegations in the statement of claim, counterclaim, cross claim, or third party claim. If a case is nearing completion, the arbitrator should wait until the case concludes to make the referral if, in the arbitrator's judgment, investor protection will not be materially compromised by this delay.(c) If any arbitrator refers a matter or conduct for investigation under paragraph (b) of this rule, the Director will disclose the act of making the referral to the parties. A party may request that the referring arbitrator(s) recuse themselves, as provided in the Code, no later than three days after the Director notifies the parties of the referral. If a party does not make the recusal request within the prescribed timeframe, the party forfeits the right to request recusal of the referring arbitrator(s).(d) The Director will evaluate the arbitrator referral to determine whether to transmit it to other divisions of FINRA. Only the Director shall have the authority to act under this paragraph (d).(e) At the conclusion of an arbitration, any arbitrator may refer to FINRA for investigation any matter or conduct that has come to the arbitrator's attention during and in connection with the arbitration, either from the record of the proceeding or from material or communications related to the arbitration, which the arbitrator has reason to believe may constitute a violation of the rules of FINRA, the federal securities laws, or other applicable rules or laws.curated by veteran Wall Street lawyer Bill Singer http://www.rrbdlaw.com/4467/securities-industry-commentator/Wooster man indicted after making threats purporting to be from women associated with an adult website (DOJ Release)Equity Market Structure 2019: Looking Back & Moving Forward (Remarks at the Gabelli School of Business, Fordham University by SEC Chairman Jay Clayton and Director, Division of Trading and Markets, Brett Redfearn)New Jersey Man Sentenced To 21 Months Prison For Participation In Ticket Investment Scheme (DOJ Release)Three Former Mozambican Government Officials and Five Business Executives Indicted in Alleged $2 Billion Fraud and Money Laundering Scheme That Victimized U.S. Investors / More Than $200 Million in Alleged Bribes and Kickbacks Paid to Mozambican Government Officials and Investment Bankers (DOJ Release)Long Island Woman Arrested for Stealing More Than $10 Million in Fraudulent Real Estate Investment Scheme / Defendant Promised Investors Profits from the Sale of Three Skyscrapers in Japan that She Falsely Claimed to Have Inherited (DOJ Release)FINRA Department of Enforcement, Complainant, v. Titan Securities; Brad C. Brooks; and Richard Wayne Demtriou, Respondents (FINRA OHO Decision)