Stockbroker Law - Thursday, October 03, 2013
Man Bites Dog

Compensatory Damages of $637,069.00 Assessed Against Morgan Stanley in Favor of Terminated Broker on Counterclaims in Retention Bonus Promissory Note Case


An arbitration panel of the Financial Industry Regulatory Authority (FINRA) has awarded terminated and former Morgan Stanley broker, David Ayres, compensatory damages of $637,069.00 on his counterclaims in a retention bonus promissory note claim filed by Morgan Stanley (FINRA Case No. 12-01106). 


The award, dated August 9, 2013, also directed an offset of $466,696.00 in favor of Morgan Stanley, from claimed promissory note indebtedness of $718,696.18, against the broker’s compensatory damage award of $637,069.00, affording the terminated broker net monetary damages of $170,373.00. 


The panel also directed Morgan Stanley to release holds it had placed on the terminated broker’s frozen joint account, which he had maintained with his wife, against which Morgan Stanley laid claim during the pendency of its claims on the promissory note.

Attorney Timothy J. O’Connor of the Albany Law Offices of Timothy J. O’Connor represented the successful broker, noting:


Over the last few years, we have seen more and more cases of large brokerage firms bullying former brokers with both Court-venued litigation attacks, as well as arbitration-venued claims.  From my perspective, these bare-knuckle tactics used by brokerage firms are designed to intimidate and harass departing brokers, with brokerage firms seeking to make an example of brokers who have signed Promissory Notes.


If feel you have been intimidated or harassed by your brokerage firm employer, we offer a free initial consultation to assess your claim.


The Law Offices of Timothy J. O’Connor practices securities law in the Tri-City Capital District of Albany, Schenectady and Troy.  We also represent victimized investors throughout the rest of New York State, including Buffalo, Binghamton, Rochester, Syracuse, Watertown, Utica, Kingston, Poughkeepsie, New York City/Manhattan, Long Island, and everywhere in between, as well as in the surrounding states of Massachusetts, Vermont, New Hampshire, Connecticut, and New Jersey.


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