by Bill Singer
Bill Singer's Street Legal Column (Registered Rep Magazine) and Street Sweeper Column (Forbes) Now Online
December 2, 2010
Honor Impugned, Advisor Strikes
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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