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


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


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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