Former Cetera Advisor Wins $500,000 Arbitration Award Over Failed M&A Deal

Posted on May 3rd, 2023 at 1:13 PM
Former Cetera Advisor Wins $500,000 Arbitration Award Over Failed M&A Deal

From the desk of Jim Eccleston at Eccleston Law 

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded nearly $500,000 to a former Cetera Financial Group advisor, Betsy Jo Merritt, after an agreement to sell her branch fell through. 

The arbitration claim stemmed from Merritt’s agreement to sell her branch for $2.1 million to a then-Cetera financial advisor named Joseph Singleton. However, Janice and John Cartwright of Long Beach, California-based CLG Wealth Management allegedly undercut the deal and recruited two of Merritt’s advisors to their own firm. Cetera was initially a defendant in the case, but Merritt voluntarily dismissed the claims against Cetera as part of a November 2022 settlement.

Merritt and Singleton signed a binding letter in December 2015 outlining Merritt's intent to sell her branch, which received a $1.9 million valuation. John Cartwright allegedly recruited the two highest-producing advisors to CLG Wealth Management by promising a higher payout. Singleton departed Cetera by that fall as he “had seen the writing on the wall and knew there was no longer any reason to purchase Ms. Merritt’s business”, according to the award. Merritt and Singleton initially sought a total of $10.8 million in damages in their May 2018 FINRA arbitration filing.

 

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

 

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.

October 27, 2025
FINRA Panel Orders Charles Schwab to Pay Damages Over Structured Product Losses Sold by Vora Wealth Management

A three-person FINRA arbitration panel ordered Charles Schwab & Co. to pay $165,440 in compensatory damages to a former client of Vora Wealth Management, after losses tied to complex structured products.