Finra arbitration panel awards $500,000 to former Morgan Stanley rep

Posted on May 12th, 2015 at 11:25 AM
Finra arbitration panel awards $500,000 to former Morgan Stanley rep

A Finra arbitration panel last Thursday decided in favor of a former Morgan Stanley rep following a dispute between the broker and firm over an alleged breach of a promissory note.

In a disagreement dating back to December 2012, Morgan Stanley asserted that the former rep, John Offenburger, breached a promissory note that would be payable to the firm in full once the rep was no longer employed there, according to the award letter.

The wirehouse alleged that Mr. Offenburger's employment at Morgan Stanley was terminated on Oct. 5, 2012, and that he refused to pay the balance due, according to the award letter. Morgan Stanley sought $519,131.98 in payment, along with damages, interest, costs and attorneys' fees.

In response, Mr. Offenburger filed a counterclaim in April 2013 denying the firm's claims and leveling a slate of accusations against Morgan Stanley, including breach of contract, fraudulent or negligent presentations, defamation and tortious interference with business relations, per the award letter. The former rep claimed that he was forced to resign and that Morgan Stanley's agents made “false and defamatory statements” about him to his clients.

Mr. Offenburger also sought $1.395 million in damages.

The arbitration panel denied all of Morgan Stanley's claims, stating “that the promissory note was unenforceable and no fraud was proven,” according to the award letter.

Meanwhile, the arbitration panel awarded Mr. Offenburger $500,000 for his claim of lost income.

The panel decided that Morgan Stanley's promissory note to the former rep satisfies the award, meaning that the sum due to Mr. Offenburger has been paid in full, according to the award letter.

Calls to Mr. Offenburger's attorney James J. Eccleston were not immediately returned. Morgan Stanley spokeswoman Christine Jockle declined to comment.

 

This article was originally posted on www.investmentnews.com on May 11th, 2015.

Related Attorneys: James J. Eccleston

Tags: James Eccleston, Jim Eccleston, Eccleston Law Offices, Morgan Stanley, Broker Protocol,

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.

September 21, 2023
SEC Charges Private Equity Firm Over Fee Disclosure Failures to Affiliate

The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.

September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).