EDJ Arbitration

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Sep 15, 2006 3:32 pm

I left EDJ in November of 05' after 1.5 years of employment as an IR. After leaving I received a letter stating I owed them the Traning Costs. After contacting a few people I was told to disregard the letter as just a threat. However, I recently received another letter from the NASD requesting a Arbitration Case for the costs of tranning. I know I signed the contract but never thought leaving and going to another firm would end up in this.


I have contacted a lawyer but was wondering if anyone else has experienced EDJ taking the case this far? Any answers or suggestions would be greatly appreciated. Thanks.

Sep 15, 2006 4:07 pm

EDJ will take you to arbitration for this so lawyer up. Find someone who is NASD familar. Also, for your defense you may want to solicit this forum for ways in which EDJ lies to new recruits. Best of luck

Sep 15, 2006 7:44 pm

YoungGun1:

I know I signed the contract but never thought leaving and going to another firm would end up in this.


I have contacted a lawyer but was wondering if anyone else has experienced EDJ taking the case this far? Any answers or suggestions would be greatly appreciated. Thanks.


---------------------------------------------------


Present this problem to your new firm. They may pay these training costs for you. However, the potential for this problem should have been discussed prior to your going to the new firm. Don't be surprised if your new firm balks at paying this after you've already started. Good luck.

Sep 15, 2006 11:21 pm

You should pay them the money that you owe them.

Sep 16, 2006 1:33 am

I agree with knuck on this one.  If you knew about this when you joined you shouldn't try to skip out on it.  Always pay your debts.  Unless they forget about it.  Then you should forget about it too.

Sep 16, 2006 7:40 am

85% of the people who start at EDJ leave before 3 years. So you're telling me that they go after every employee that leaves? When I started I thought I was going to be there for a long time but things just didn't work out.

Sep 16, 2006 9:34 am
YoungGun1:

85% of the people who start at EDJ leave before 3 years. So you're telling me that they go after every employee that leaves? When I started I thought I was going to be there for a long time but things just didn't work out.


That's perfectly ok. You knew how much it would cost if "things just didn't work out", now it's time to pay.

Sep 16, 2006 3:05 pm

Three pieces of advice:


1. Get an attorney immediately.


2. Be ready to pay a significant amount of money since I think EJ is going to get you on this one.


3. Next time you sign a contract, make sure you read it and be ready to abide by the terms.


In general, you need to grow up and accept responsibility for your actions.


Sep 16, 2006 6:30 pm

Oh, I forgot to tell everyone they want $75,000. SO maybe I should just scroung up some change and pay them the money, even though I left on good terms.

Sep 16, 2006 6:34 pm

what do you think about that Proton?? Or can you lend me $75k??


Sep 17, 2006 12:55 am

I've heard that ridiculous sum before, but I have a hard time imagining an arbitration board giving them anything remotely close to that.  On the flip side, I have a hard time believing that you "left on good terms"...something has surely pissed them off for them to take you as far as they have...

Sep 17, 2006 10:09 am

I assure you that I did leave on good terms. People in the Home Office even told me that I was always "welcome back". Looks like I may have to go back to fix this problem.

Sep 17, 2006 12:08 pm

If you're going to another firm, they're coming after you. I've never heard

of them deciding not to come after the ex-IR for the money. That said,

most competing firms are willing to suck-up the cost. Or at least, every

time a recruiter from another firm calls me, they tell me that. Also, the

75k is prorated over the first 3 years you're with Jones. So while it's still

huge amount of money to pay on your own, if you've been there 1.5

years, it's only going to be 37,500. (Not that it really makes it fit into

YOUR budget easily, but it does make it fit into your new firm's budget a

lot more easily).

Sep 17, 2006 8:21 pm

Thanks for the reply Jones. I was told by a Lawyer for National City that sometimes EDJ gives ex-reps 3 options: 1. Pay them 2. File Bankruptcy or 3. Relinquish my licenses.


If it comes down to that I will just chose the latter.

Sep 17, 2006 10:17 pm

Wow...I'd work out a payment plan or even consider BK before I'd give up my licenses...you don't sound like you want to be in this business very badly...

Sep 17, 2006 10:29 pm
Indyone:

Wow...I'd work out a payment plan or even consider BK before I'd give up my licenses...you don't sound like you want to be in this business very badly...


Does filing bankruptcy become a "Yes" on a U-4?

Sep 17, 2006 10:36 pm
YoungGun1:

If it comes down to that I will just chose the latter.



I would too.  I would resign from the new position, allow yourself to be U-5'ed out of the business.


Sell insurance for awhile, then go about reactivating the licenses before the two years expires.


Both Jones and your current employer MUST indicate that you voluntarily resigned--your U-4 will be clean when you resubmit it.


You'd be insane to pay Jones and you'd be insane to declare bankruptcy.


Anybody who would suggest either of those paths is not worth listening to.


Just go to work in the insurance industry--if somebody asks why you did not transfer your NASD tickets tell them that you had to pay your own fees and saw no reason to pay those fees until you had established yourself in insurance and were ready to go back into securities.


Makes sense, and as I say the record will show two voluntary resignations.

Sep 17, 2006 10:38 pm

Sure it does...but that's not a death sentence if he's not changing firms.  Tell me how that's worse than giving up your licenses, oh wise one.

Sep 17, 2006 10:41 pm
Street Maven:

Anybody who would suggest either of those paths is not worth listening to.


Just another example of why you continue to get yourself banned, jackass.

Sep 17, 2006 10:43 pm
Street Maven:
YoungGun1:

If it comes down to that I will just chose the latter.

I would too.  I would resign from the new position, allow yourself to be U-5'ed out of the business.


Sell insurance for awhile, then go about reactivating the licenses before the two years expires.


Both Jones and your current employer MUST indicate that you voluntarily resigned--your U-4 will be clean when you resubmit it.


You'd be insane to pay Jones and you'd be insane to declare bankruptcy.


Tell me again, oh wise one...what prevents Jones from coming back after him when he reactivates?