J.P. Morgan Ordered To Pay $1.4 Million To Advisor In Defamation Case

Posted on February 22nd, 2022 at 12:51 PM
J.P. Morgan Ordered To Pay $1.4 Million To Advisor In Defamation Case

From the Desk of Jim Eccleston at Eccleston Law:

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered J.P. Morgan to pay $1.4 million to a former advisor who alleged defamation following his termination nearly five years ago.


The former J.P. Morgan advisor, Dustin Luckett, alleged that the firm filed a defamatory Uniform Termination Notice (Form U5) after he was fired in 2017. According to the award, Luckett alleged invasion of privacy as well as tortious interference with prospective business expectancies. While firms are required to submit registration records upon an advisor’s employment termination, many in the industry contend that firms take advantage of the filing system to harm an advisor’s reputation and seize his/her client accounts.


Luckett was terminated after allegedly asking another employee to notarize a document without the client being present, according to BrokerCheck. J.P. Morgan also alleged that Luckett “engaged in conduct it deemed inconsistent with its anti-retaliation policies.”


The FINRA arbitration panel awarded damages and additionally recommended that J.P. Morgan expunge (revise) the terms of Luckett’s employment history to illustrate that the dispute was solely over the clerical process of notarizing.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston, eccleston law, JP Morgan, finra

Return to Archive

TESTIMONIALS

Previous
Next

We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

January 23, 2025
Barred Advisor Continues Pattern of Settlements at Western International Securities

Chris Kennedy, a barred advisor formerly associated with Western International Securities, has agreed to a $2.1 million settlement with the Securities and Exchange Commission (SEC) over allegations of high-volume trading, or churning, in client accounts.

January 22, 2025
FINRA to Revise Outside Business Activities Rules

The Financial Industry Regulatory Authority (FINRA) is seeking to overhaul its rules on outside business activities (OBA) and private securities transactions.

January 21, 2025
FINRA Orders $8.2 Million in Customer Restitution Over Mutual Fund Fee Errors

FINRA has required Edward Jones, Osaic Wealth, and Cambridge Investment Research to reimburse customers a combined total of more than $8.2 million for improperly charged mutual fund sales fees.