[W]hen Respondent resigned, his commissions generated, which were attributable to two stabilization agreements (the "Agreements"), did not equal the production level at which he had been compensated. Claimant further alleges that, as result [sic], Respondent was overpaid and Respondent is obligated by the agreements to repay Claimant.
(a) Notice of Suspension or CancellationIf a member, person associated with a member or person subject to FINRA's jurisdiction fails to comply with an arbitration award or a settlement agreement related to an arbitration or mediation under Article VI, Section 3 of the FINRA By-Laws or a FINRA order of restitution or FINRA settlement agreement providing for restitution, FINRA staff may provide written notice to such member or person stating that the failure to comply within 21 days of service of the notice will result in a suspension or cancellation of membership or a suspension from associating with any member. When a member or associated person fails to comply with an arbitration award or a settlement agreement related to an arbitration or mediation under Article VI, Section 3 of the FINRA By-Laws involving a customer, a claim of inability to pay is no defense. . . .
[O]ppenheimer filed an arbitration claim against Pincus with FINRA Dispute Resolution (FINRA Arbitration No. 17-01514) seeking repayment. On November 9, 2017, a FINRA arbitration panel rendered an award in favor of Oppenheimer and against Pincus for $288,863.12, plus interest and fees ("Award"). On that date, FINRA notified Pincus's counsel of the Award and that if Pincus did not pay it within 30 days, FINRA could suspend Pincus's registration.Pincus did not satisfy the Award, enter into a fully executed, written settlement agreement to pay the Award, file for bankruptcy protection, or file a motion to vacate the Award. As a result, on September 24, 2018, FINRA served Pincus with a Notice of Suspension notifying him that his registration would be suspended effective October 15, 2018, for failing to pay the Award. The Notice of Suspension also advised Pincus that he could request a hearing, which would stay the effective date of the suspension. Pincus timely filed a request for a hearing and claimed he has a bona fide inability to pay the Award. A hearing was held by telephone on November 29, 2018.
attempted to negotiate a settlement with Oppenheimer to repay his outstanding loans but Oppenheimer rejected his proposals. Pincus testified that prior to the entry of the Award, his counsel offered the firm a $50,000 down payment and a payment plan to satisfy the balance of the loans. Pincus did not specify any additional amounts that he offered to pay as part of the proposed payment plan. He claimed that Oppenheimer refused his offer and refused to accept partial payment of the outstanding loans.After the Award was issued, Pincus did not attempt to negotiate a settlement with Oppenheimer until the week of this hearing. Again, Pincus did not specify the settlement terms offered to Oppenheimer, but he testified that Oppenheimer refused this offer as well.
[P]ursuant to Article VI, Section 3 of FINRA's By-Laws and Rule 9559(n), Pincus is suspended from associating with any FINRA member in any capacity, effective as of the date this Decision is issued. The suspension shall continue until Pincus provides documentary evidence to FINRA showing that (1) the Award has been paid in full; (2) he and the claimant have agreed to settle the matter (and he is in compliance with the settlement terms); or (3) he has a petition pending in a United States Bankruptcy Court, or the debt has been discharged by a United States Bankruptcy Court.