A former Morgan Stanley adviser cut $365,000 off an arbitration award against her after successfully arguing the firm didn’t pay her full salary for three years.
The March 7 ruling reduced Potomac, Maryland broker Beverly B. Carroll’s payment to $41,000 in a rare FINRA arbitration win for a broker seeking funds from a company.
In January,
Morgan Stanley filed its claim with FINRA against Carroll in June 2015, more than a year after her April 2014 resignation, according to documents from the case.
Stocks and Puerto Rican bonds are the focus of many cases among clients, advisers and firms.
Carroll denied that she had breached a promissory note and filed a counterclaim seeking $425,000 for back pay in September 2015.
An arbitration panel tossed out the counterclaim in December 2015 after Morgan’s legal team filed a motion to sever it from the case. Carroll filed her claim in a separate arbitration proceeding the following month.
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The former planner says she was wrongfully terminated and that she did not agree to settle with the wirehouse.
February 8 -
Arbitrators for the regulator also awarded an expungement to Dale Cebert, who claimed a campaign to damage his reputation followed his termination from the wirehouse.
August 11 -
Coding and other billing system errors were to blame, according to the regulator.
January 13 -
In spite of its own compliance policies, the firm failed to get several hundred clients to sign a disclosure notice that described risks associated with inverse ETFs.
February 14
Morgan paid Carroll $278,440 in salary over three years rather than the $600,000 the company promised her, according to her claim. She said the firm also failed to honor more than $100,000 in commissions it owed her, and she sought interest fees from Morgan Stanley as well.
The company denied Carroll’s allegations. The parties’ September 2016 settlement, which a FINRA arbitrator approved in January, granted Morgan Stanley $339,000 in damages plus interest and attorney fees in connection with the promissory note claim.
A FINRA panel decided to award Carroll $365,000 in compensatory damages last week. The three arbitrators denied her request for the company to pay her legal bills for the case.
A lawyer who represented Morgan didn’t respond to requests for comment, and a spokeswoman for the company declined to comment. The attorney who represented Carroll in both proceedings did not return messages seeking comment. Efforts to reach Carroll directly were not successful.
