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

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).