FINRA Begin Again?
On June 21, 2012, we posted about a $5M award by FINRA to brokers John Paladino and Todd G. Vitale. FINRA is the Financial Industry Regulatory Authority, and its awards are generally difficult to overturn. However, San Diego Judge Lisa Schall has overturned the award, based on the failure of one of three arbitrators in the case to relationships. As reported by Corrie Driebusch on September 18 for the Dow Jones Newswires, the arbitral award was overturned because one arbitrator “failed to disclose this his daughter worked for a brokerage firm and maintains an account with Morgan Stanley.” Ouch.
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