<![CDATA[LOOKING FOR A FINRA ATTORNEY? - Finra Attorney Blog]]>Fri, 12 Dec 2025 21:06:32 -0500Weebly<![CDATA[FINRA Enfocement Trends 2022]]>Thu, 08 Sep 2022 14:15:22 GMThttps://www.finraattorney.net/finra-attorney-blog/finra-enfocement-trends-2022In 2022 we have seen a variety of FINRA Enforcement investigations ranging from FINRA 8210 letters related to a Registered Representative's:

1) personal purchase of stock while posting on internet bullitin boards such as Reddit implicating FINRA Rule 2210 relating to Communications with the Public, and FINRA's Social Media Guidance within Regulatory Notice 10-06 Guidance on Blogs and Social Networking Web Sites. We successfully defended the rep in drafting a clear persuasive response to a 2022  FINRA 8210 Letter Inquiry demonstrtating how our client did not violate FINRA rules, resulting in a simple warning letter which is not reportable on one's CRD record.

2) use of applications such as Whats App and We Chat so as to communicate with clients overseas resulting in communications which were not reviewed by the representative's Broker Dealer . We have responded to an 8210 Letter triggered by a termination and U5 filing resulting from the use of such apps and are awaiting the outcome. This trigger of the 8210 letter from the U5 filing highlights whey it is imperitive that a representative retain counsel as soon as they are terminated so that counsel may engage with their former employer BEFORE any U5 is filed which may then tigger a lenghty and costly FINRA 8210 letter. While we can not gurantee such engagement would avoid a 8210 letter, we are typically successful in influencing in what the employer places on any U5 so as to have the least impact on future employment and perhaps avoid the triggering of a FINRA 8210 investigation, as we are very familiar with what causes such triggers. 

3) continued abuse of company expense accounts, food allowances, computer allowances, etc. as we have posted here previously.  FINRA continues to issue 8210 letters related to terminations associated with unauthorized use of company expense accounts for personal expenses, whether for food, transportation or technology charges. We continue to represent numerous representatives who are terminated for the abuse of such accounts which much to the suprise of many representatives FINRA takes seriously and can be viewed as theft resulting in a Bar from the industry.   

4) arrests, and/or convictions that had not been reported to FINRA as required. We continue to receive inquiries from reps regarding what needs to be reported and, just as important, what events do not need to be reported under FINRA rules.

If you were recently terminated from a firm and want professional assistance in engaging with your former employer regarding your U5 so as to possibly avoid triggering a FINRA Enforcement Investigation and preserve your future employability, OR if you have received a FINRA Enforcement 8210 letter - DONT WAIT (as we may not be able to help you if you do wait) contact our offices for a FREE consultation as soon as possible. 
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]]><![CDATA[A Lesson in Why You Dont Take Your Customer Files When Leaving]]>Fri, 31 Dec 2021 18:56:31 GMThttps://www.finraattorney.net/finra-attorney-blog/a-lesson-in-why-you-dont-take-your-customer-files-when-leavingIn August of 2021 FINRA fined and suspended for one month Former Registered Rep Giordan Marc Zaro who had worked Merrill Lynch. It would appear from the rendition of facts that Mr. Zaro was terminated by his employer Merrill Lynch for sending "confidential and proprietary information to his personal email address." It would appear that as a result of such termination, which appeared to have been done before the Rep could leave on his own, Merrill had filed a U5 reflecting such action which presumably was for the purpose to solicit his clients after he arrived at his new firm. It would appear that the U5 termination filing then triggered a FINRA Enforcement investigation which led to the suspension and fine, accomplishing a lot more for Merrill than they could have accomplished without triggering a FINRA Enforcement Investigation, tarnishing the Rep's entire career.   Zaro joined the financial services industry in January 2017 with AXA Advisors and left the the same year to join Merrill in February 2018. Since his discharge from Merrill, Zaro registered with Emerson Equity in March 2020, according to BrokerCheck. He moved to Invicta Capital in January of 2021, but he has since departed such firm and has not registered with another firm..

This series of events should be a wake-up call for any Rep thinking of departing their firm and what not to do in planning for such departure. Taking/transferring files out of the office without authorization to do so, even if temporarily, is seen as theft and a violation of FINRA's Code of Conduct.  Departing employees should consult with a competent FINRA Attorney when changing firms so as to avoid mistakes such as this which have long term consequences.

I have advised hundreds of Registered Reps in the transition process of changing firms, so as to avoid all complications, arbitrations, and regulatory issues and to ensure a smooth transition. 

If you are transitioning from one firm to another contact us for a free phone consultation at 212-764-3100.

​Stuart D. Meissner Esq. ]]><![CDATA[December 30th, 2021]]>Thu, 30 Dec 2021 16:56:36 GMThttps://www.finraattorney.net/finra-attorney-blog/december-30th-2021More FINRA Enforcement Actions Re Inaccurate Meal Expense Reports 
Once again as reported in this Blog back in 2018 FINRA is continuing to crack down on Reps who file inaccurate firm expense accounts such as food expenses. This past year we have had another example of a Morgan Stanley Rep in the business for 34 years who allegedly filed false expense reports for over five years. Rep Kerry Moy agreed to a two month suspension and a $5000 fine to settle FINRA charges, this is after having been fired by Morgan Stanley. Notably the Rep WAS NOT accused of theft in that the charges were legitmate, but the Rep apparently permitted his assistant to submit expense reports with random client names and prospect names rather than the actual names of those who attended each meal. Therefore, this case seems like it was an act of laziness on the part of the rep, but from the view of his employer, Morgan Stanley, and FINRA, the REP had continously knowingly filed false expense reports, when if he had simply kept careful records and provided the actual accurate names of the clients and prospects for which the meals were expended for there would have been no firing or FINRA action. 

This matter highlights how an act of careless record keeping and disregard of the prohibition of submtting false reports to one's employer can have a catastrophic impact on one's career, not to mention the cost of having to defend a FINRA enforcement proceeding. This matter also highlights how FINRA often focuses on low hanging fruit in their investigations as these expense account abuse cases are typically easy for them to prove with the coopeartion of the firm which maintains the expense report submissions and the failure of a rep to provide backup for the purported charges when the firm investigates.  

We are often asked about what is the typical resolution to these types of cases. The reality is there is no "typical" outcome as they are all very fact dependent. How long did it go on for? Was it an issue of mistake rather than intentional wrongdoing? Does one have backup to show how such was a mistake? How much money is invovled? Etc. We attempt to evaluate all the facts of one's situation and place them in the best possible light starting with the initial response to the 8210 Letter from FINRA so as to attempt to convince FINRA to either not pursue the case or to ultimately issue a warning or a minimal sanctions, rather than a lenghty suspension or outright Bar.

If you have a matter you wish to discuss, please contact me at 212-764-3100 for a free consultation. 

Stuart D. Meissner Esq.  
]]><![CDATA[How Abusing Your Retired Partner by not Crediting Commissions in Inherited Accounts Can Lead to FINRA Enforcement Actions]]>Tue, 28 Dec 2021 20:24:41 GMThttps://www.finraattorney.net/finra-attorney-blog/how-abusing-your-retired-partner-by-not-crediting-commissions-in-inherited-accounts-can-lead-to-finra-enforcement-actionsRecently FINRA has been taking actions against brokers who miscode production numbers so as to avoid crediting former reps who had retired and left their book of business to the new rep. While most may think that the worst case scenario would be that the retired broker may file an arbitration against them if they found out, it turns out that is the least of the concerns. As noted in the recent cases of former Morgan Stanley brokers who not only were discharged by Morgan Stanley even though such miscoding was at the encouragement of supervisors, FINRA then took enforcement action against the reps. Most recently in the matter of John Miller, who was fined $15,000 and suspended for 15 days for violating high standards of practice. Such deal apparently was only permitted because of the involvement of management in the miscoding, as otherwise he would have faced conversion (theft) charges and a likely Bar.

Once again this matter shows why it is important to retain a qualified experienced  FINRA Attorney to represent you in any FINRA Enforcement investigation as it could mean the difference between working in the industry and not. ]]><![CDATA[Ignore Terminations & FINRA 8210 Letters at Your Own Risk]]>Wed, 17 Jul 2019 18:57:23 GMThttps://www.finraattorney.net/finra-attorney-blog/ignore-terminations-finra-8210-letters-at-your-own-risk
As a recent article in Financial Advisor IQ points out when a Registered Representative / Broker receives an 8210 Letter from FINRA requesting information and a signed statement, it would be wise to quickly call an experienced FINRA Attorney to assist in the initial response. Typically this follows a termination where the same Rep failed to contact an experienced FINRA Attorney to engage with the firm about what will be submitted in their U5 filing, which may have avoided the dreaded 8210 letter.

The initial response to any 8210 letter sets the stage for what happens later. Too many reps call us, only after they responded on their own,  to save money, only to learn that their response only did further damage, causing FINRA to further focus on them, by asking more questions and/or requesting that they come to FINRA for an on the record in intereview or an OTR. As a result not only is the time needed for an attorney to assist substantially lengthened, but the Rep is locked into a statement which is not helpful. 

These days there are many FINRA Enforcement action related to firm's meal reibursement programs such as the recent firing/suspension of a Morgan Stanley representative who did not have counsel), and/or a Fidelity broker who took advantage of a computer reimbursement programs  allowance program. We have written about this issue before but it bears repeating as FINRA has been on war path with regard to such issues. Such programs provide for the expenditure of certain meals which the rep abuses, and/or the reimbursement for the purchase of a laptop which the rep then returns, but keeps the funds. These matters involve serious charges which reflect upon honesty and theft and thus FINRA takes such allegations seriously. In theory, these matters can turn into criminal proseuctions, as FINRA and/or the firm involved can refer them to local prosecutors. Those that treat such investigations as minor are in for a rude awakening when FINRA later suspends or Bars them. Further, most representatives, being self represented or represented by inexperienced FINRA counsel who are not familiar with FINRA's rules, fail to realize that a suspension even if short can in effect be the same as a bar if the AWC alleges it was intentional. As a result, the represenative becomes statutorily disqualified from the industry, meaning any firm that employs them would need to implement signficant oversight over the rep such that it makes it impossible for a firm to afford to employ them and they cant find a job. In addition, any admissions can in theory be used for a criminal prosecution.

I have handled hundreds of U5 negotiations/FINRA 8210 Letter responses to date, and I have found that it is rare to find a case where we did not assist altering the U5 language so that the language was less impactful on the rep and/or avoided a potential 8210 Letter* while still accurate as to the reason for the departure. We engage with the firm and question every word of the proposed language asking the firm to attempt to support their proposed langauge or otherwise encourage them to alter it so that it better reflects what they know or do not know. Further, upon being retained to respond to a FINRA 8210 letter we request that the client provide us with their proposed response to FINRA as the first step. We have yet to see a single proposed response which did not require substantial modification while keeping the response accurate. For example, many representatives provide too much information , which was not even requested, and in so doing make matters worse. As a result, as many of our former  clients attest to, we often succeeded in avoiding many of the negative repriccussions that would have been career ending for our clients wihout our assistance*.  If you wish to have a free confidential/privleged phone consultation on your issue please feel free to contact me if you have recently been terminated or recieved an 8210 letter. 


Stuart Meissner Esq.
Managing Partner
Meissner Associates
212-764-3100

​Note:  New York based Meissner Associates is a nationally recognized employment law firm focused on the unique employment issues within the securities industry which is overseen by FINRA. The firm also represents SEC whistleblowers before the SEC, investors and securities professionals before FINRA arbitration panels and securities professionals in enforcement proceedings, as well as institutional and retail investors worldwide in recovering improper investment losses and protecting the employment rights of employees in the securities industry in FINRA arbitration and AAA Arbitration. Managing member Stuart Meissner is a former Assistant District Attorney in Manhattan and Assistant New York State Attorney General in the Investor Protection and Financial Crimes Units. 

​Call Meissner Associates,  FINRA Attorneys
Nationwide Representation for FINRA Arbitrations

Disclaimer: Prior results cannot and do not guarantee or predict a similar outcome with respect to any future matter, including yours, in which a lawyer or law firm may be retained. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. 
Attorney Advertising]]><![CDATA[Brokers' False Recruitment Promises Can Lead to FINRA Lawsuits]]>Mon, 01 Jul 2019 20:30:02 GMThttps://www.finraattorney.net/finra-attorney-blog/brokers-false-recruitment-promises-can-lead-to-finra-lawsuitsIt is more common than you might think: A promising broker who is doing well for themselves with their current employer is recruited to join another firm after being promised the world.

The broker leaves their job to join this new firm and is shocked to learn that the enticements were misleading and/or false. 

We are seeing more and more often just how common this technique is, in particular with Citizens Securities, a subsidiary of Citizens Bank, according to our clients. After having filed multiple claims with FINRA, we are showing Citizens Securities that our clients mean business. 

Read on to learn more about the false recruitment promises in question and how our firm obtained an unheard-of result for one broker who had only been employed with Citizens Securities for four and a half months before the lies forced him to take action.

The Bait and Switch
Citizens Investment Services and other financial companies have faced accusations of tempting otherwise-successful financial planners into leaving their current positions and coming to work for their institution by making promises that often include inheriting a large book of business, usually tens of millions of dollars in business, and promises that they would be working in well-established branches. 

Brokers would then be issued a promissory note as part of the recruitment deal, which is typically repaid over a period of five years. However, in some cases, once these stockbrokers would agree to be recruited, things took a turn for the worse, as is believed was the case with Frank Aiello and several other former Citizens Securities brokers.

Meissner Associates vs. Citizens Securities
Our firm is proud to have assisted wronged brokers in obtaining awards after allegedly having been taken advantage of by Citizens Securities and other financial planning institutions. In the case of Aiello, he states that Citizens Securities recruited him from PNC Bank by promising him a $30 million book of business and the ability to work in his current Pennsylvania branch. He was also issued a $220,000 promissory note. 

He contends that almost immediately, things took a turn for the worse when he was not only forced to sign a backdated document stating he had never been made these promises, but he was not given the promised book of business and was sent to work in an entirely different branch. 

Aiello tried to make the best of a bad situation but left Citizens Securities just four months after being recruited, which meant his promissory note was due in full. After making a repayment offer of $150,000 that was ultimately rejected, he states that he began receiving threats that his broker license would be taken away by Citizens Securities. 

Concerned for his future, Aiello began working with our team at Meissner Associates, and after we did our due diligence and obtained damaging evidence against Citizens that we believe showed their blatant disregard for the truth, Aiello was issued an unheard-of award of nearly $1.7 million. 

We have also initiated claims for other wronged Citizens Securities brokers, including Wendy Morasco and several others who were allegedly made nearly identical promises by Citizens Securities only to find them to be lies. 

Meet with an Experienced FINRA Employment Dispute Lawyer
If you are a stockbroker who was recruited based on false or misleading promises and are interested in holding the brokerage firm to account, reach out to a highly trained FINRA employment dispute lawyer at Meissner Associates. 

We provide free consultations to those like you who have been wronged by financial planning institutions. To take advantage of this opportunity, you can fill out the confidential contact form on the right side of this page or give our firm a call at 212-764-3100.]]><![CDATA[What Is a FINRA Form U5?]]>Wed, 26 Jun 2019 20:02:35 GMThttps://www.finraattorney.net/finra-attorney-blog/what-is-a-finra-form-u5The Financial Industry Regulatory Authority (FINRA) requires all brokerage firms to file a Form U5 for all registered representatives. Also known as the Uniform Termination Notice, the Form U5 is then available for Securities Industry Registration for both FINRA and self-regulatory organizations (SRO), including brokerage firms and financial planning institutions and jurisdictions. 
FINRA requires this form to be filed within thirty days of a stockbroker’s termination. This can be done electronically through the online Central Registration Depository (CRD). A copy of the Form U5 must also be provided to the terminated broker and/or registered representative within the same thirty-day timeframe. 
If you have been let go from your brokerage firm and are awaiting your Form U5, or if you have received your Form U5 and found false information, you may need to get help from a financial industry employment lawyer. Below, we go into further detail about why FINRA requires firms to file a Form U5 and the various types of Form U5 filings there are. 
The Purpose of Form U5The financial industry and securities markets are heavily regulated by a number of different government agencies, including FINRA, the U.S. Securities and Exchange Commission (SEC), and agencies within each state. 
For this reason, whenever a stockbroker leaves a firm, whether due to a termination, a voluntary discharge, or even death, a Form U5 must be filled out. This provides these agencies with specific information about the conduct of the stockbroker. 
Types of Form U5 FilingsThere are three types of Form U5 filings: full, partial, and amended. 
In a full Form U5 filing, an individual’s registration will be terminated with all SROs and the state or jurisdiction. 
A partial Form U5 filing terminates a broker’s registration with select jurisdictions and SROs. Partial-form U5s do not include disclosure questions or the reason for termination. 
Finally, an amended Form U5 filing is used to make changes to an existing Form U5. Such changes might include the reason for termination, amending a disclosure, updating the individual’s residential address, and the date of their termination. 
The information contained in a Form U5 can dramatically impact your life, particularly if the information is false or misleading. If you have found information on your Form U5 that could seriously harm your professional reputation or your ability to earn a living, it may be well-advised to consult with an attorney.
Consult with a Financial Industry Employment LawyerIf you are a registered stockbroker who has been wrongfully terminated by your firm, or if you are involved in another type of employment dispute, you may have already or will soon receive a Form U5 filing. 
For help understanding what your Form U5 contains, or if you need legal representation to pursue FINRA arbitration for your dispute with your former employer, contact a respected financial industry employment lawyer at Meissner Associates. To schedule your free case review, simply submit the contact form on the right side of this page or give our office a call at 212-764-3100.
]]><![CDATA[Fired and U5 Marked for Violating Firm Food, Computer or Transportation Expense Accounts]]>Wed, 21 Nov 2018 21:57:27 GMThttps://www.finraattorney.net/finra-attorney-blog/fired-and-u5-marked-for-violating-firm-food-computer-or-transportation-expense-accountsPicture
We have received numerous calls from reps informing us that firms are cracking down  on brokers abusing dinner, computer or transportation expense reimbursement accounts.  Reps are being terminated and U5 forms are being marked resulting in more and more FINRA 8210 letters and year long FINRA Enforcement investigations. Brokers are being impacted by this purge of what in the past was viewed as a minor issue which in the past resulted in a simple warning. Now there are no more warnings, rather violators are being terminated. 
As reported by the Wall Street Journal, firms from Wells Fargo to Fidelity have been discharging brokers for violating expense policies regarding after hour meals. Others have been discharged for violating computer reimbursement policies by returning computers after being ordered and keeping the reimbursement instead of reporting the return. Other altered times on food receipts so as to meet firm time requirements for dinner reimbursement policies.

Many brokers don't realize the serious nature of such actions as on the surface they have nothing to do with clients and securities. However the impact on one's career can be devastating and not to be taken lightly.  U5 forms mandate that firms report to FINRA if any termination involves "fraud or the wrongful taking of property" (Question 7F on Form U5). Such actions clearly renders the rep eligible for such being checked off. Once such is checked off on a Form U5 it automatically triggers a FINRA investigation and a FINRA 8210 Letter. FINRA Investigations tend to last over a year even if they do not seek sanctions, which impacts upon one's ability to be hired by another firm as they will inquire if there is a FINRA investigation, and no firm seeks to employ a broker who may be suspended or barred by FINRA.

It is essential to retain a qualified FINRA Attorney early on, as soon as the rep is terminated, so that the attorney may be able to convince the firm not to check off Question 7F and if they do, to respond properly, so as to minimize the likelihood that FINRA pursues the investigation or seeks sanctions. These matters are not something to handle on one's own as too often reps dig a deep hole that the attorney they later retain cannot dig out from.

Finally, too many reps incorrectly believe that if they resign voluntarily before they are terminated that they may avoid any issues. However, departing before being fired does not resolve any of the issues raised. One's U5 will still be marked as your departing during an investigation and when the investigation concludes your U5 will be amended.

​For further information or assistance Contact Stuart D. Meissner Esq. 866-764-3100.


Note:  New York based Meissner Associates is a nationally recognized employment law firm focused on the unique employment issues within the securities industry which is overseen by FINRA. The firm also represents SEC whistleblowers before the SEC, investors and securities professionals before FINRA arbitration panels and securities professionals in enforcement proceedings, as well as institutional and retail investors worldwide in recovering improper investment losses and protecting the employment rights of employees in the securities industry in FINRA arbitration and AAA Arbitration. Managing member Stuart Meissner is a former Assistant District Attorney in Manhattan and Assistant New York State Attorney General in the Investor Protection and Financial Crimes Units. 

​Call Meissner Associates,  FINRA Attorneys
Nationwide Representation for FINRA Arbitrations
​
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]]><![CDATA[September 08th, 2017]]>Fri, 08 Sep 2017 20:11:14 GMThttps://www.finraattorney.net/finra-attorney-blog/citizens-securities-finra-arbitration-fraudulent-recruitment-claimsMeissner Law Firm Files & Prepares to File More Fraudulent Recruitment Claims Against Citizens Securities
After the enormous publicity ​reporting on the record 1.7 million dollar award we recently won in July against Citizens Securities, subsidiary of Citizens Financial Group (NYSE: CFG), appearing in Bank Investment Consulting Newsletter, as well as the lengthy analysis done by Wealthmanagement.com  (See Articles Below) about the pattern of aggressive recruiting and broken promises by Citizens Securities, which referred to new claims being reviewed and actually filed by our firm against Citizens Securities we expect more multi-million dollar awards to come in favor of registered representatives. The articles which appear below, have led to hundreds of calls from current and former Citizens Securities employees, from around the country, Pennsylvania, New York, Massachusetts, Ohio, Michigan and other places who were similarly situated as Mr. Aiello. Callers to us seeking a FINRA Attorney have all provided similar stories of being misled into transferring to Citizens Securities based on false promises and losing their careers and clientele they built up over years in the process. As a result, we are preparing to file several more FINRA Arbitration Claims against Citizens Securities and have already file one such claim. 
In the award of this past July, we turned the tables on Citizens Securities who was seeking to have our client, who only stayed at Citizens for four months before leaving in disgust, repay a $220,000 upfront recruitment payment on a note. Instead Citizens Securities was required to pay 1.7 million, including retroactive interest, discovery sanctions and all FINRA forum fees to our client Frank Aiello. Frank was a financial advisor who alleged that he was fraudulently recruited from PNC Securities with the promise of a large book of business to be given to him as well as to be assigned to the same State College PA town which his customer base was in so that he could transfer his large current book of business. While the promises were all oral we were able to prove that they were made and that Citizen's reneged on their promises,  which it was alleged was a pattern and practice for Citizens Securities. As noted in the Bank Investment Consulting Newsletter, other lawyers rarely win these claims which was characterized as a "bell-ringer," although in keeping with our law firm's know record arbitration win statistics *. 
If you believe you were misled by Citizens Securities or any other firm such as Well Fargo or others we have received calls on, and believe you were financially damaged significantly as a result call Meissner Associates for a free case evaluation - Toll Free Nationwide FINRA Attorney Representation 866-764-3100. We are now considering contingency type of legal retainers for Citizens employees as a result of our knowledge and history with such bank.

 
Note:  New York based Meissner Associates is a nationally recognized employment law firm focused on the unique employment issues within the securities industry which is overseen by FINRA. The firm also represents SEC whistleblowers before the SEC, investors and securities professionals before FINRA arbitration panels and securities professionals in enforcement proceedings, as well as institutional and retail investors worldwide in recovering improper investment losses and protecting the employment rights of employees in the securities industry in FINRA arbitration and AAA Arbitration. Managing member Stuart Meissner is a former Assistant District Attorney in Manhattan and Assistant New York State Attorney General in the Investor Protection and Financial Crimes Units. 

​Call Meissner Associates,  FINRA Attorneys
Nationwide Representation for FINRA Arbitrations

Mailing Address:
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Phone- 212-764-3100, 845-444-5274
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Bank Investment Consultant Article:
Wealthmanagement.com Article:
*Prior results cannot and do not guarantee or predict a similar outcome with respect to any future matter, including yours, in which a lawyer or law firm may be retained. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.  ATTORNEY ADVERTISING
]]><![CDATA[Meissner Firm Wins 1.7 Million Award on Behalf of Reg Rep in Defending Promissory Note Case]]>Wed, 19 Jul 2017 04:45:26 GMThttps://www.finraattorney.net/finra-attorney-blog/meissner-firm-wins-17-million-award-on-behalf-of-reg-rep-in-defending-promissory-note-caseIn a unique case involving blatant misrepresentations and false promises made by Citizens Securities, a subsidiary of Citizens Financial Group, to an investment advisor during the hiring process, who faced a $220,000 demand for return of promissory note funds because he left the bank just 4 months after starting, a FINRA panel awarded the Advisor nearly 1.7 million  in damages, interest and sanctions.   
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NEW YORK (July 19, 2017) – In a milestone FINRA arbitration award released late last week from a Pittsburgh Pa. arbitration panel on behalf of a broker/investment advisor, New York based FINRA arbitration law firm Meissner Associates has secured a nearly $1.7 million arbitration award to a former employee of Citizens Securities a subsidiary of Citizens Financial Group (NYSE: CFG).  The broker advisor, Frank Aiello, age 49 of Boalsburg Pennsylvania, claimed that Citizens misled him when they recruited him from PNC bank to work for Citizens Securities. The Claim alleged that Citizens made numerous misrepresentations to him, such as (1) false promises that he could continue to work in State College Pennsylvania where his client base was but instead assigning him to branches far from that location; and (2) false promises that he would be given a 30 million dollar book of business to add to his already growing book, when in fact he was given only one-third of what was promised.
 
Commenting on the award Stuart Meissner, Managing Member of the Meissner law firm, and a former securities regulator and prosecutor in New York, stated “I am pleased that the Panel heard the mountain of evidence we developed, some of which were Citizens' own witnesses, to support Mr. Aiello’s allegations even though all the promises made to him were oral.”  Noting on the attempt to cover up their actions Meissner noted “Citizens Securities went out of its way, both during the events and during the arbitration process, to try to cover up and obstruct the truth from coming out, but they failed miserably.”
 
Mr. Aiello commenting on the award stated “I am very pleased that justice was done and that the FINRA panel saw through Citizen’s Securities attempt to mislead. I hope this award will give other employees who are misled during recruitment in the securities industry the incentive to fight for justice.”
 
It was alleged that after he started his employment Citizens Securities demanded that Mr. Aiello execute an acknowledgement form stating that no promises were made to him and that he was instructed to backdate the document to a date prior to his start date to make it appear that he had signed such acknowledgement while he was still with his prior employer PNC. During the hearing it was established that Mr. Aiello could not even have had the acknowledgement form on the date that it was indicated it was signed. The arbitration was also impacted by numerous sanction motions related to Citizen’s improper withholding and improper redacting of portions of critical emails and other documents which were uncovered due to subpoena, including internal emails between the headhunter and Citizens’ personnel referring to another recruit who was demanding similar promises be placed in writing in his offer letter, refusing to place such promises in writing stating “that could create a disaster from a litigation stand point. Can you imagine Frank Aiello with this kind of written promise.”  At the conclusion of the hearing Aiello requested a range of compensatory damages between $902,000 and 4 million dollars. The 1.7 million dollar award, included retroactive 6% interest from his start date of August 3, 2015 on the 1.5 million dollars awarded totaling $168,410 in interest and $8,000 in sanctions. While the award was offset by the $220,000 provided to him by Citizens, along with $7,030 in interest on such note, that amount is dwarfed by the damages awarded to Mr. Aiello. Further, all forum fees totaling over $15,000 was assessed entirely against Citizens Securities.
 
Typically, cases involving forgivable promissory notes are very difficult to defend against, let alone achieve an award turning the tables on the brokerage firm and requiring it to pay substantial damages to the broker/advisor. It was alleged in the claim that Citizens Securities has a pattern and practice of making such false promises to prospective recruits and then failing to live up to such promises significantly impacting their careers. As a result of the award, the Meissner firm now expects, and has already received, numerous inquiries by current and former Citizens’ Securities broker/advisors who wish to bring similar multi-million dollar claims against the brokerage. 

THERE IS A FOLLOWUP BLOG POST REGARDING THIS CASE 

Mr. Meissner is a former Manhattan prosecutor and member of the New York Attorney General’s office securities and financial crimes divisions.
 
Note:  New York based Meissner Associates is a nationally recognized whistleblower, securities, investment fraud and employment law firm representing SEC whistle-blowers, securities professionals in FINRA arbitration and enforcement proceedings as well as institutional and retail investors worldwide in recovering improper investment losses and protecting the employment rights of employees in the securities industry in FINRA arbitration and AAA Arbitration. Managing member Stuart Meissner is a former Assistant District Attorney in Manhattan and Assistant New York State Attorney General in the Investor Protection and Financial Crimes Units. 

​Call Meissner Associates,  FINRA Attorneys
Nationwide Representation for FINRA Arbitrations
212-764-3100
* Prior results cannot and do not guarantee or predict a similar outcome with respect to any future matter, including yours]]>