Articles Posted in Arbitration Award

A FINRA arbitration panel issued a $444,000 securities arbitration award against Woodbury Financial Services as a result of the conduct of one of its registered representatives, “JG” of “G” Wealth Management out of Culver City, CA.  Counsel for the Claimant was The Law Office of David Liebrader. The award, issued by a FINRA panel sitting in Los Angeles, CA was one of the first 1031/TIC awards obtained at FINRA as a result of the 2008 market collapse.

The case was tried over five days before a three member arbitration panel, and featured the testimony of several expert witnesses. The underlying facts concerned a tenant in property (TIC) that was sold to one of Woodbury Financial’s customers. The Claimant alleged that Woodbury Financial Services failed to conduct an appropriate level of due diligence, and failed to follow its own internal policies concerning the percentage of a customer’s assets that could be invested in investments like the TIC sold by Woodbury’s “JG”.

The failure to conduct due diligence resulted in the approval of an over leveraged property that quickly defaulted on its mortgage, leaving the investors without a means to recover their investment.

In January, 2016, a three member FINRA arbitration panel issued a $100,000 binding arbitration award against Steelpoint Securities for conduct related to one of their former registered representatives Ron Harrod.

The underlying matter involved allegations that Harrod improperly recommended gold and silver and energy investments to one of his customers.  While the arbitration case was pending Harrod filed for bankruptcy.

As a result of this award The Law Office of David Liebrader has opened an investigation into Steelpoint Securities.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Ron Harrod, a FINRA registered representative formerly with Steelpoint Securities in San Diego, CA.

Ron Harrod has been FINRA licensed to sell securities for 58 years, and spent the last five years with Steelpoint Securities in Corona Del Mar, CA, where he was licensed to sell securities in California. In October, 2015 Steelpoint Securities filed a notice indicating Harrod was no longer employed with the firm, and since then he has not joined another firm. Prior to joining Steelpoint Securities, Harrod was registered with WBB Securities in Corona Del Mar, Ca. He was also affiliated with Pacific American Securities out of San Diego, CA. FINRA expelled Pacific American from membership in 2012.

FINRA maintains a database that the public can access to check the credentials of their financial advisors. The website, also known as broker check contains a listing for Ron Harrod, who was the subject of a customer complaint that resulted in an arbitration award again the firm.

On December 3, 2015, a FINRA Dispute Resolution, Inc. arbitration panel found against Greg Townes, a registered representative with Foresters Equity Services of Ocala, FL.

The Claimants in the matter, Wanda and Michael Saporito were represented by The Law Office of David Liebrader.  After hearing the evidence, the FINRA arbitrators awarded Claimants $135,000 against Greg Townes, including $45,000 in attorney’s fees

FINRA Code of Arbitration Procedure section 12904 governs the issuance and payments of awards. Key provisions of the rule are that the award may be entered as a judgment in any court of competent jurisdiction, after a motion to confirm the award is filed pursuant to state or federal law. Furthermore, unless the applicable law directs otherwise, all awards rendered under the Code of Arbitration Procedure are final, and are not subject to review or appeal. Grounds for overturning binding FINRA arbitration awards are extremely limited.

On August 18, 2015 a FINRA Dispute Resolution, Inc. arbitration panel found against Jon Sanchez, a registered representative with Independent Financial Group of Reno, NV.

FINRA Code of Arbitration Procedure section 12904 governs the issuance and payments of awards. Key provisions of the rule are that the award may be entered as a judgment in any court of competent jurisdiction, after a motion to confirm the award is filed pursuant to state or federal law. Furthermore, unless the applicable law directs otherwise, all awards rendered under the Code of Arbitration Procedure are final, and are not subject to review or appeal. Grounds for overturning binding FINRA arbitration awards are extremely limited.

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution