Federal Court Upholds FINRA Prom Note Arbitration Award Against Rep

From the Desk of Jim Eccleston at Eccleston Law LLC:

A former Morgan Stanley advisor’s petition to vacate a FINRA forgivable loan arbitration award for $1.4 million was denied by a federal judge in New York.  

According to federal court filings, in her petition to vacate the award, the advisor argued that one of the arbitrators in the three-person panel should have been disqualified due to conflict of interest because he was employed by a law firm that worked with other financial institutions.

Nevertheless, the federal court, in denying the financial advisor’s motion to vacate, agreed with Morgan Stanley’s argument that the financial advisor consented to the panel during the initial-pre-hearing conference, and it was only after an unfavorable decision was rendered against her that she contested the award.

The attorneys at Eccleston Law defend advisors nationwide against forgivable loan collection actions and represent transitioning advisors in other matters. Please call us at 312.332.0000 for a free consultation.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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