Broker defense verdict, expungement

In a FINRA arbitration which took place in May, 2015, Robert Mitchell represented a securities professional with a major broker-dealer firm who had been named in a securities fraud claim related to a real estate investment made by the financial advisor with his former investment client.

The former client alleged a variety of misconduct including the purported failure by the financial advisor to appropriately notify his broker-dealer employer of the outside business activity. The former client sought damages of $2.47 million. Mr. Mitchell argued that the outside investment was clearly disclosed to the broker-dealer firm, the client who was a very experienced real estate professional with considerable knowledge and participation in all facets of the real estate acquisition, and there was no fraud or other wrongdoing in connection with the real estate investment.

In an arbitration award dated June 29, 2015, a three member FINRA arbitration panel denied the former client’s claim entirely ruling in favor of Mr. Mitchell’s client. The panel further directed the allegations be expunged from the financial advisor’s CRD registration records.

Mr. Mitchell was very pleased with the outcome and believes that justice was done in a case where the claims lacked merit and were unjustified. Mr. Mitchell handles meritorious cases whether plaintiff or defense oriented. For a consultation with Mr. Mitchell about your securities arbitration matter, please call Mr. Mitchell at (602) 452-2730.