In October 2009, Charlene Haddock filed a FINRA Arbitration Statement of Claim against Wachovia Securities, LLC, Prudential Securities, Inc., and Stacey Haddock in which Claimant Charlene Haddock alleged that Respondent Stacey Haddock (Claimant's daughter-in-law and also a Wachovia/Prudential employee) had asked Claimant to invest $110,000. Claimant Haddock alleged that while her daughter-in-law was employed by Respondents Wachovia and Prudential that Respondent Haddock forged account documents to cover the unauthorized withdrawal of Claimant's funds through forged checks and wire transfers. Claimant asserts that at no time did she give Respondent Haddock power of attorney or discretion over her Prudential/Wachovia brokerage account. Further, Claimant alleges that virtually her entire net worth was stolen from her by Respondent Haddock, who was in the employ and under the supervision of Respondents Prudential/Wachovia when the thefts occurred and, accordingly, those respondents should be held responsible for the resulting damages. At the conclusion of the hearing, Claimant requested compensatory damages of $100,000.00 plus $ 31,183.56 interest, $30,275.00 attorneys' fees, and $2,876.63 in costs. In the Matter of the Arbitration Between Charlene Haddock, Claimant vs.Wachovia Securities, LLC, Prudential Securities, Inc., and Stacey Haddock, Respondents (FINRA Arbitration Case 09-05756, October 5, 2010)
Respondents Wachovia and Prudential generally denied the allegations and asserted affirmative defenses including that Claimant's:
Additionally, Respondents Wachovia and Prudential asserted that they acted in compliance with all applicable rules and regulations and acted in good faith and did not directly induce the alleged acts or acts, if any, constituting alleged violations of law. Moreover, those Respondents stated that to the extent that Claimant suffered any damages, those damages have no casual relationship with any acts committed by Wachovia or Prudential, nor are they legally attributable to Wachovia and Prudential; and the alleged acts of Stacey Haddock, if any, were committed outside the course and scope of her employment and without the knowledge of Wachovia or Prudential.
On or about August 6, 2010, Claimant filed a Motion to Compel and Motion to Bar Stacey Haddock from Presenting Defense Due to Her Failure to Answer the Statement of Claim. Respondent Stacey Haddock failed to appear at the FINRA arbitration and failed to respond to the Motion.
The FINRA Arbitrator found Respondent Stacey Haddock, liable for and ordered her to pay to Claimant:
The FINRA Arbitrator denied and dismissed with prejudice all claims against Respondents Prudential and Wachovia.