In July, 2017, a FINRA arbitrator panel sitting in New York, NY issued a $2.6 million binding arbitration award against Northeast Securities a FINRA registered broker dealer. The award was joint and several against Northeast Securities and registered reps Stephen Perrone, Diane Hawkins and Jonathan Zucker. The award includes nearly $900,000 in pre award interest and reimbursement for close to $34,000 in expert witness costs. Perrone, Hawkins and Zucker’s requests to expunge the claim from the CRD system was denied by the panel.
The underlying matter involved corporate bonds, and Claimant asserted claims for breach of fiduciary duty, negligence, churning, misrepresentations and violations of FINRA rules. During the pendency of the case, the Claimant filed a request with the panel to make a disciplinary referral to FINRA for Respondents alleged refusal to turn over presumptively discoverable telephone records that could have aided Claimant’s case. The panel denied the request to make the disciplinary referral.
Improbably, despite making such a large award on behalf of the Claimant, the panel split the arbitration hearing session fees 50-50, requiring Claimant to pay $13,500 to FINRA.