February 26, 2022
The saga of Beverley Schottenstein's lawsuit against JP Morgan Securities and her grandsons Evan and Avi has been widely reported in the press. This litigation is the stuff of soap operas, rom-coms, and television mini-series. As with the old serial movies of years long since past, just when you think the end is near, there's a cliff-hanger. As we return to the action, a federal court seems to have blown the final whistle. But for the fact that this may be less American football and more like soccer where the time runs out but they keep playing into something called "extra time" which, for the life of me, I don't quite get because, you know, the clock shows "0:00" but, regardless, they keep on running around kickin' the ball. Best I can tell, the federal court's whistle is ending the game but let's see how that all pans out over the next few months.
The BrokeAndBroker.com Blog published "Hot Shoe Burnin' Down Wall Street In FINRA Morgan Stanley Panama Arbitration, " an article that was written solely by our publisher Bill Singer and published with a copyright notice. For the third time, someone or some company has submitted a Digital Millennium Copyright Act ("DMCA") notice claiming that Bill Singer's copyrighted article wasn't his exclusive copyrighted material. Inexplicably, Google had blocked the article. Understandably, Bill Singer, a 40-year-veteran-lawyer, isn't about to succumb to baseless threats. He has submitted contests to the DMCA notices citing his sole authorship and published copyright notice. In response to Google's takedown of the originally posted content, Bill deleted the content from the original URL and has now republished it at this new location, and he will continue to re-site the content so as long as it is subjected to improper DMCA takedowns. Bill, being the generous guy that he is, also has taken the time to update aspects of the original story and to more clearly mark his turf by noting repeated instances of his name and copyright throughout the update version of the original article. Who is behind the effort to remove the article? Who is behind the effort to silence Bill? Who is behind the effort to erase all online traces of this story? Bill has no idea and, frankly, doesn't give a damn. He will continue to republish this story in an effort to ensure that public investors are made aware of Wall Street's short-comings and that those seeking to cover up the truth never prevail. Thankfully, Google reviewed Bill's contest and rescinded its earlier blockage.
As the January 2022 version of this post reported, J.P. Morgan Securities ("JPMS") had alleged that Timothy Logsdon needed to be restrained from disclosing confidential information and soliciting the firm's clients. As things turned out, although the Court denied JPMS' requested TRO, the judge left open the possibility of a subsequent injunction, and, trying to squeeze through that narrow opening, JPMS requested an evidentiary hearing in order to depose Logsdon.
The February 18th FINRA Press Release is a clumsy effort to manage a public relations nightmare. Painfully, lacking in the Press Release is any sense of urgency. What I would have expected -- what industry reform advocates demand -- is accountability on a fast track. For starters, the Audit Committee should not merely express a desultory desire for some kind of findings in "coming months," but underscore the mission-critical aspect of this blot on FINRA's reputation. No, you don't get to go to the old delay-of-game playbook and select the option of a report in a few months and then grant an extension and then deliberate on the recommendations and then publish a sanitized report to the public for extended comment and then undertake a reconciliation effort and then publish a proposed rule and then extend all of that nonsense to a point where FINRA's Chair, and CEO, and all sitting Board members have long-since retired and left the mess to another generation of wannabe self-regulators.