Take the recent Financial Industry Regulatory Authority arbitration that started in January by member firm Jesup & Lamont (J&L) against its former employee, Aaron Foley. J&L sought $35,000 in compensatory damages and $10,500 in various fees from Foley as a result of his alleged non-payment of a balance on an outstanding promissory note. Foley generally denied the allegations.
Of course, in keeping with these intra-industry cases, Foley found that his industry record had a nasty, new disclosable matter. J&L reported a letter from client Jane Fisher as a customer complaint against Foley. J&L characterized the allegations as an unauthorized transaction and the unauthorized dissemination of confidential account information (resulting in an alleged loss to the customer of $5,000).
Apparently, Foley wasn't prepared to simply defend against J&L's complaint but took things a step further - he filed his own complaint against his former firm seeking $1 million in compensatory damages and asking for an expungement of what he viewed as defamatory statements on his Form U4. In the Matter of the Arbitration Between Jesup & Lamont Securities Corp., Claimant, versus Aaron Foley, Respondent (FINRA Arbitration 10-00038 Sept. 7, 2010.)
READ BILL SINGER'S ANALYSIS OF THIS CASE AT
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