J.P. Morgan Securities Ordered to Pay Damages Over Defamation Claims
From the desk of Jim Eccleston at Eccleston Law
J.P. Morgan Securities has been directed to pay $250,000 in damages to a New York financial advisor following allegations of defamation in a regulatory filing upon his departure from the firm in 2022. The Financial Industry Regulatory Authority (FINRA) arbitration award allows the advisor to expunge the defamatory accusations from his record.
AdvisorHub reports that the dispute stemmed from J.P. Morgan's Uniform Termination Notice for Securities Industry Registration (Form U5). Michael Nolan was accused of sharing nonpublic information with a client and engaging in undisclosed business activities. Upon moving to RBC Wealth Management-U.S., Nolan contested those allegations, asserting they impeded his ability to attract clients and breached FINRA Rule 1122, which prohibits the filing of misleading information.
The arbitration award also mandates revising Nolan's record to reflect his departure from the firm as "voluntary" and to clarify that no internal policies were violated.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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