FINRA Panel Denies Former Advisor Opportunity to Defend Himself

Posted on January 13th, 2020 at 2:29 PM
FINRA Panel Denies Former Advisor Opportunity to Defend Himself

From the Desk of Jim Eccleston at Eccleston Law LLC:

A Financial Industry Regulatory Authority Inc. ("FINRA") arbitration panel recently concluded an arbitration case involving a former Raymond James advisor with a promissory note balance. The case is unique because the arbitrators denied the rep an opportunity to present testimony, witnesses or evidence, as a sanction for failing to file his answer in a timely manner.

According to a recent OnWallStreet article, Gregory Clark was present for the arbitration hearing. However, the three arbitrators ruled that Clark lost his right to a defense against Raymond James' claims that he owed the firm $206,000.  

According to the arbitration award, the panel granted the firm's request for the sanction and denied a subsequent appeal by Clark. Raymond James attorneys asked the arbitrators to bar Clark from presenting defenses and facts. That was an extreme sanction, but one that arbitration panels can use if they deem one side has not played fairly by the rules.

James Eccleston, who was not affiliated with Clark's case, was quoted in the article as saying, "The circumstances provide a foundation for some sort of sanction, though this one is extreme. It didn't help that Clark did not have his own lawyer." Clark instead brought to the hearing a broker-colleague who served as his non-lawyer representative.

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 FraudCompliance ProtectionBreach of Fiduciary DutyFINRA 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

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, finra, financial advisor, gregory clark,

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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