In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in March 2012, Claimants Hans and Doyle sought unpaid commissions. In the Matter of the FINRA Arbitration Between Peter D. Hans and Scott J. Doyle, Claimants, vs. FBR Capital Markets & Co.,Respondent (FINRA Arbitration 12-01131, March 20, 2013).

In their pre-hearing brief. Claimants requested the following:

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Claimant Hans:

• $110,026.00 for the commission on the cash fee plus five years of interest at 6% per annum ($33,008.00); and
• $239,250.00 for the commission on the stock fee plus two years of interest at 6% per annum ($28,710.00)

Claimant Doyle:

• $239,250.00 for the commission on the stock fee plus two years of interest at 6% per annum ($28,710.00).

Respondent FBR generally denied the allegations and asserted various affirmative defenses.

Moving Along

In October 2012, Respondent FBR filed a Motion to Dismiss, asserting, among other things, that Claimant Doyle had previously released his claims through a severance agreement with Respondent in which the payment of trailing commissions and/or the granting of shares of stock were addressed. In response, Claimant Doyle disputed that he had released his claim to trailing commission. In November 2012, the FINRA Arbitration Panel denied the Motion without prejudice.

Award

The FINRA Hearing Panel found Respondent FBR liable and ordered it to pay to:

• Claimant Hans: $239,250,00 in compensatory damages plus pre-judgment interest in the sum of $28,710.00.
• Claimant Doyle: $239,250,00 in compensatory damages plus pre-judgment interest in the sum of $28,710.00.

Also see these cases involving industry disputed commissions:

• Lehman Brothers Loses Promissory Note Collection Case: Claimant Lehman Brothers asserted breach of contract and unjust enrichment in connection with Respondent Tanner's alleged failure to repay a promissory note. Respondent Counterclaimed for unpaid commissions; wrongful termination; defamation; and incorrect calculation of amounts owed.
• Tullet Prebon's $16 Million Raiding Case Broadside Against BGC Financial Fizzles:Respondents generally denied the allegations in a $16 million raiding arbitration and Counterclaimed based, in part, over assertions that they had a right to be paid certain expenses and commissions.
• Stockbroker Wins Arbitration For Owed Commissions And Expenses: Claimant alleged that before and after his separation from employment, Respondent Allegiant Securities had failed to pay to him commissions that he had earned and had failed to reimburse expenses. 1212
• Stockbrokers Sue To Recover Unpaid Commissions: Claimant alleged that Respondents Wedbush and Wedbush Securities had wrongfully withheld commissions
• Wells Fargo / Wachovia Wins And Loses Against Former Employee: Claimant Wells Fargo sought to recover from Respondent an unpaid promissory note balance, collection costs, and fees.  Respondent counterclaimed for commissions owed.
• Former Wedbush Rep Wins Incentive Compensation Case: Claimant alleged that Respondent Wedbush failed to honor an employment contract that specified the quarterly payment of incentive compensation in the amount of 25% on all trading profits and sales commissions.

READ Bill Singer‘s analysis of a recent high-profile federal prosecution of a credit repair conspiracy: "Credit Repair Scam Ends With Pleas And Prison"