Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • AdvisorsRBC, Stifel Add Merrill Lifers in NY, NM
          • U.S. President Joe BidenBiden Eyeing Capital Gains Tax as High as 43.4% for Wealthy
          • SECSEC Chief Gensler Names Alex Oh to Lead Enforcement Division
          • Board MeetingBlucora Shareholders Shoot Down Activist’s Bid for Board Seats
        • Close
      • Advisor Moves
          • AdvisorsRBC, Stifel Add Merrill Lifers in NY, NM
          • (left to right) Brian Beraha, Alexis Audisio, Jared Pillar, Michelle Gonzalez, Horacio Aguirre and Vicente Del Rio moved to UBS's private wealth business in Miami from J.P. Morgan's private bank.UBS Nabs $11-Mln J.P. Morgan Private Bank Team in Florida, Another in Ohio
          • Doris Neyra, Melissa Van Putten-Henderson and Gina Jamurath moved to UBS's private wealth business in Miami from Wells Fargo's private bank.UBS Lands $14-Mln Team from Wells Private Bank in Miami
          • Merrill Lynch Exterior Sign and LogoMerrill Recruits Citi Private Banker in SF, Loses Teams to Janney, Sanctuary
        • Close
      • Enforcement
          • Advisor FraudSEC Charges RIA with Pro Athlete Niche for Ripping Off Clients
          • advisor-diy-tools-772×485Ex-Jones Broker Suspended for Attempting DIY Settlement with Client
          • Advisor GuiltyEx-Merrill Broker in Chicago Pleads Guilty to $3-Mln Fraud
          • J.P. MorganFinra Fines, Suspends Ex-J.P. Morgan Broker Fired over Unauthorized Trades
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Temporary Restraining OrderSirianni: Toxic Culture
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
        • Close
      • Fintech News
          • Fintech Cryptocurrency ClearingFintech Firm Apex Clearing Agrees to Go Public Via SPAC
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
        • Close
      • From the Publisher
          • Temporary Restraining OrderSirianni: Toxic Culture
          • Welcome to AdvisorHub RIA-772×485Welcome to AdvisorHub RIA
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Asset Manager Hub
  • Virtual Summit
close X
September 28, 2017

Broker Can’t Escape Promissory Note Debt Through Bankruptcy

by Mason Braswell
|
Enforcement
|
JP Morgan
|
Finra
|
No Comments
Share This
SUBMIT A TIP
Broker Can’t Escape Promissory Note Debt through Bankruptcy

A former broker with J.P. Morgan Securities lost his third attempt at escaping repayment of a $790,000 transition-bonus loan to the bank when a federal bankruptcy court panel in Los Angeles earlier this month upheld a lower-court decision backing a Finra arbitration panel award.

Joseph Ellison, who left the bank-owned broker in early 2012 after two-and-a-half years, filed for bankruptcy in 2014 three weeks after receiving notice from the Finra panel that he was bound by his promissory note to pay back the loan, according to the decision. He also took the unprecedented step of prepaying $52,000 on his home mortgages within six days of learning that his arbitration attempt to escape repayment had failed.

The U.S. Bankruptcy Court for the Central Division of California “did not err in finding that Debtor made transfers with the intent to hinder or delay a creditor,” a three-judge panel ruled in response to the appeal Ellison filed on September 8, 2017. “The bankruptcy court committed no clear error in finding the facts.”

Filing for bankruptcy to escape signing-bonus promissory note commitments is rare and risky for brokers because it can derail their careers, said Kevin Hoffman, an employment lawyer in Greenwich, Conn., who was not involved in the Ellison case.

Ellison, who is now a registered investment advisor with Holly Street Wealth Advisors in Pasadena, Calif., did not return a call for comment.

The advisor, who spent the first 16 years of his brokerage career with Morgan Stanley in Beverly Hills, initiated his arbitration claims against J.P. Morgan in June 2012 in an attempt to escape repayment, the courts found. The bank counterclaimed with a successful request for the outstanding loan balance he owed of $550,000  plus interest and $200,000 in attorney’s fees.

Ellison argued in his appeal that he transferred $121,000 from personal bank accounts to those of companies he owned out of concern that he would “leave his family destitute,” according to court papers. But the judges ruled that his visit to an asset protection attorney in Las Vegas in January 2014, six months before the bankruptcy filing, helped corroborate J.P. Morgan’s claims.

After leaving J.P. Morgan Securities in April 2012, Ellison worked for two-and-a-half years at Mutual Securities in Beverly Hills, according to his BrokerCheck record. Finra suspended him from working as a registered representative in November 2016 because of his failure to comply with the arbitration award and to cooperate with its investigation of the status of his compliance.

 

Like this article? Let AdvisorHub come to you!  Sign up

Share This
No Comments

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Stifel Bumps CEO Pay 15% to $11.5 Million

    Stifel Bumps CEO Pay 15% to $11.5 Million

    Apr 20, 2021
  • Fed to End Covid-19 Capital Break It Gave Wall Street Banks

    Fed to End Covid-19 Capital Break It Gave Wall Street Banks

    Mar 19, 2021
  • Credit Suisse Replaces U.S. Exec, Halts Bonuses as Clients Fume

    Credit Suisse Replaces U.S. Exec, Halts Bonuses as Clients Fume

    Mar 18, 2021
  • Firing of Billion-Dollar Broker Sends Warning on Work-from-Home Compliance

    Firing of Billion-Dollar Broker Sends Warning on Work-from-Home Compliance

    Mar 12, 2021
  • Big U.S. Banks’ Vows to Halt Job Cuts End as Virus Endures

    Big U.S. Banks’ Vows to Halt Job Cuts End as Virus Endures

    Feb 26, 2021

NEWS

  • RBC, Stifel Add Merrill Lifers in NY, NM

    RBC, Stifel Add Merrill Lifers in NY, NM

    Apr 22, 2021
  • Biden Eyeing Capital Gains Tax as High as 43.4% for Wealthy

    Biden Eyeing Capital Gains Tax as High as 43.4% for Wealthy

    Apr 22, 2021
  • SEC Chief Gensler Names Alex Oh to Lead Enforcement Division

    SEC Chief Gensler Names Alex Oh to Lead Enforcement Division

    Apr 22, 2021
  • Blucora Shareholders Shoot Down Activist’s Bid for Board Seats

    Blucora Shareholders Shoot Down Activist’s Bid for Board Seats

    Apr 22, 2021
  • Wells Terminates Three Brokers Over Past Insurance Sales

    Wells Terminates Three Brokers Over Past Insurance Sales

    Apr 22, 2021

Recruiting Winners: 2020 Year in Review

FINANCIAL INDUSTRY PODCASTS

AllIndependence
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Incisive conversations focused on helping investors navigate the ever-changing global market landscape
Michael Kitces and Carl Richards discuss financial advising topics.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
Interviews and insights for advisors curious about switching to a new broker dealer.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.

Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top