Jonathan R. Legg, who joined Morgan Stanley in 1999 after being permitted to resign from a B. Riley predecessor firm for alleged violations of firm policies on discretion in client accounts and reporting of customer complaints, was granted expungement of nine related client claims.
A three-person arbitration panel sided with UBS for the majority of the award against a broker who joined Wells in 2017 but also said the firm had misrepresented its loan program and agreed with the broker’s constructive discharge claim.
Barry S. Snyder, who also has an ongoing lawsuit against J.P. Morgan Securities over his 2015 discharge, is mulling asking a court to vacate the award, his lawyer said.
One panel awarded two couples who had lost nearly $700,000 on their investments in UBS’ Yield Enhancement Strategy their money back plus prejudgement interest, while the wirehouse notched its ninth YES victory with another panel.
One broker, Jason L. Seifert, was denied in his counterclaim that UBS made “errors and misrepresentations” prior to his 2011 hire that resulted in damage to his client relationships, reputation, income and “ability to succeed,” according to an arbitration award.
A three-person panel also refused to expunge the manager’s record, according to an award, which did not include an explanation.
Jerry Rice resigned from Raymond James’ independent broker unit in 2019 after the firm initiated a review into alleged conflicts of interest related to undisclosed gifts from a client.
Bradley R. Thompson, a 22-year broker now with Kovack Securities, was successful in expunging from his record a 2016 violation from LPL Financial over an “infraction of firm policy concerning loans.”
The award is the first in a Yield Enhancement Strategy case where the claimants won the full amount damages they had requested, their lawyer said.