J.P. Morgan Securities Ordered to Pay Damages Over Defamation Claims

Posted on May 8th, 2024 at 11:55 AM
J.P. Morgan Securities Ordered to Pay Damages Over Defamation Claims

From the desk of Jim Eccleston at Eccleston Law

J.P. Morgan Securities has been directed to pay $250,000 in damages to a New York financial advisor following allegations of defamation in a regulatory filing upon his departure from the firm in 2022. The Financial Industry Regulatory Authority (FINRA) arbitration award allows the advisor to expunge the defamatory accusations from his record.

AdvisorHub reports that the dispute stemmed from J.P. Morgan's Uniform Termination Notice for Securities Industry Registration (Form U5). Michael Nolan was accused of sharing nonpublic information with a client and engaging in undisclosed business activities. Upon moving to RBC Wealth Management-U.S., Nolan contested those allegations, asserting they impeded his ability to attract clients and breached FINRA Rule 1122, which prohibits the filing of misleading information.

The arbitration award also mandates revising Nolan's record to reflect his departure from the firm as "voluntary" and to clarify that no internal policies were violated.

 

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

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

September 16, 2025
Former Morgan Stanley Advisors Win Partial Court Victory in Client Solicitation Dispute

Two former Morgan Stanley advisors in Hackensack, New Jersey have defeated Morgan Stanley’s initial effort to block them from soliciting clients, according to an August 15 order from New Jersey Superior Court.

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.