One FINRA Arbitration.Three Respondents. Three Different Outcomes

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Aug 16, 2010 7:57 am

One FINRA Arbitration.Three Respondents. Three Different Outcomes.

http://www.brokeandbroker.com/index.php?a=blog&id=525

By Statement of Claim filed in September 2007, Claimant Wachovia Securities, LLC. alleged,

Breach of Protocol Agreement; Breach of Contract; Breach of Fiduciary Duty; Unfair Competition; Repayment of Promissory Notes; Repayment of "Front" Fees and expenses; and Repayment of Client Charge-Backs.

Respondents

Citigroup Global Markets, John C. Zannakis, and William E. Wolfson

generally denied the allegations and asserted various affirmative defenses.  Respondents Zannakis and Wolfson counterclaimed for unpaid wages. In the Matter of Wachovia Securities, LLC, Claimant, versus John C. Zannakis, William E. Wolfson, and Citgroup Global Markets, Respondents. (FINRA Arbitration $07-02623, August 10, 2010).

One Arbitration But Three Very Different Outcomes for the Three Respondents

On June 25, 2009, Claimant dismissed its claims against Citigroup. One down, two to go.

In June 2009, Respondent Wolfson filed for bankruptcy and in accordance with the law, all claims against him are stayed.  Consequently, the FINRA Arbitration Panel has not made any determination concerning the claims against him.  Two down, one to go.

The FINRA Arbitration Panel found Respondent Zannakis liable for $85,863.00 in compensatory damages, $14,597.00 in interest from August 2007 through July 2010; $8,000 in Claimant's attorneys' fees (pursuant to the terms of the Promissory Note Agreement); and $500 in filing fees.