Financial Advisors Win Arbitration Over "Book of Business" Dispute

Posted on July 22nd, 2024 at 3:02 PM
Financial Advisors Win Arbitration Over

From the desk of Jim Eccleston at Eccleston Law

In a lengthy arbitration dispute, two Miami-based financial advisors, Eduardo Augsten and Gustavo Vega, battled over revenue generated from their shared book of business. According to InvestmentNews, the dispute, which took over four years to resolve, centered on the lack of a formal written agreement between the partners, highlighting the pitfalls of operating on a handshake deal.

The arbitration award from May 17, rendered by three FINRA dispute resolution arbitrators, awarded Augsten $376,000. Augsten's complaint, filed in January 2020, sought unspecified compensatory and punitive damages, costs related to the joint office and lease, and other issues arising from the dissolution of their firm, Wealthengage.

Augsten had sought an equitable lien on the revenues generated by client fees and commissions, as well as reimbursement for any debts incurred after the partnership ended. Augsten owned 50 percent of the firm, and had contributed significant funds to start the company. Augsten managed the back-office operations while Vega handled client interactions.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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