What You Must Know
- An ex-Constancy dealer asserted causes of motion towards the agency that included wrongful termination and defamation.
- He additionally sought expungement of the Kind U5 termination disclosures on his report and expungement of a consumer grievance.
- The $500,000 award was lower than the $1 million in damages he had requested.
Two members of a three-person arbitration panel in New York ordered Constancy to pay a former dealer of the agency $500,000 in compensatory damages after he accused the agency of wrongfully terminating him and defaming him.
The arb panel’s award ruling, posted on the Monetary Business Regulatory Authority web site on Tuesday, was considerably lower than the “damages in an quantity in extra of” $1 million plus curiosity, prices, bills together with knowledgeable witness charges and unspecified punitive damages that Ryan Sanghak Lee had requested within the amended grievance he filed in 2020.
Constancy and Lee’s lawyer, Laurence Landsman, a associate at Landsman Saldinger Carroll in Chicago, didn’t instantly reply to requests for touch upon Friday.
Lee had asserted causes of motion that included wrongful termination, defamation and defamation per se, tortious interference with potential financial benefit and “spoliation/fraudulent concealment of proof.”
Lee additionally sought expungement of the Kind U5 termination disclosures on his report and expungement of a consumer grievance.
The consumer alleged that Lee’s “advice to give up an annuity to fund a managed account was unsuitable and resulted in unanticipated tax penalties,” and requested $22,000 in damages, in accordance too a disclosure on the ex-broker’s report at FINRA’s BrokerCheck web site. The request was denied.
“I didn’t advise the [client] to give up her annuity to fund her managed account (she was conscious that in doing so a tax legal responsibility could also be created),” Lee mentioned in response to the consumer within the disclosure.
It was the consumer’s “sole resolution to switch the funds to the managed account as she didn’t really feel comfy in managing her personal investments throughout the annuity,” he added. “All disclosures and particulars supporting this occasion had been correctly documented.”