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Former Hartford Securities Rep Demands Over $10 Million In Damages
March 5, 2015
In the fiery afterglow of a nasty post-employment split, former employees and former employers are apt to do battle over underpaid or unpaid bonuses, deferred compensation, and trailing commissions/fees. In a recent example of such hostilities, a former registered person sought over $10 Million in damages and an expungement. The former employer, not happy to simply sit by and turn the other cheek, got in a few of its own shots. In the end, it seems more of a fizzle than fizz but you be the judge.
Case In Point
In a Financial Industry Regulatory Authority
("FINRA") Arbitration Statement of Claim filed in September 2012, former
employee Claimant Miller asserted libel per se; and quantum meruit and
unjust enrichment relating to his retention bonuses, deferred compensation, and
revenues received by his former employer Respondent Hartford Securities. In addition to
seeking an expungement of allegedly false and defamatory language on his Uniform
Termination Notice for Securities Industry
Registration ("Form
U5"); Claimant also
sought
interest, attorney's fees, and
- at least $10 Million in libel per se damages and punitive damages;
- quantum meruit / unjust enrichment damages plus interest in connection with the alleged confiscation of his Retention Bonus and Deferred Compensation;
- compensation for the revenues received and to be received by Respondent as a result of Claimant's alleged efforts and labor; and
- damages emanating from an alleged FINRA investigation prompted by Respondent's alleged defamatory U-5 filing.
Counter Punching
Respondent Hartford generally denied the
allegations, asserted various affirmative defenses, and Counterclaimed based upon alleged breach of contract;
conversion; misappropriation of trade secrets; computer fraud; and violation of
California unfair compensation law. Counter-Claimant Hartford sought
compensatory and punitive damages, restitution, attorneys' fees, interest and costs/fees. Additionally,
Counter-Claimant sought orders
:
- requiring Claimant to abide by the terms of the Confidentiality Agreement and Retention Agreement, of which he is a signatory;
- permanently enjoining Claimant from using or divulging Hartford's confidential and proprietary information and trade secrets; and
- requiring Claimant to immediately return to Hartford all of its property.
Award
The FINRA Arbitration Panel found Respondent
Hartford liable to and ordered it to pay to Claimant $13,384.00 in compensatory
damages plus interest at the rate of 9% per annum accruing from May 1, 2012
until paid in full.
The Panel denied Claimant's request for expungment
but recommended a modification to his "Internal Review Disclosure Reporting
Page" indicating that the previously referenced "internal review" was "not
completed."
Bill Singer's
Comment
Not disclosed in the FINRA Arbitration Decision
but disclosed in FINRA's online BrokerCheck as of March 5,
2015, is that on April 18, 2012, Hartford reported that Miller had voluntarily
resigned based upon allegations pertaining to retirement plans and
the:
USE OF UNAPPROVED MARKETING MATERIALSVOLUNTARY RESIGNATION DURING A REVIEW OF THE ALLEGED USE OF UNAUTHORIZED MARKETING MATERIALS
Miller's BrokerCheck statement
in response to those allegations
was
I NEVER USED MARKETING MATERIALS WITHOUT AUTHORIZATION. I AM IN THE PROCESS NOW OF COMMENCING A FINRA ARBITRATION AGAINST HARTFORD TO EXPUNGE THE FALSE, DEFAMATORY LANGUAGE THAT HARTFORD NOTED ON MY U5