Schwab Plays With Fire and Gets Burned in Intra-industry Arbitration
In a FINRA Arbitration Statement of Claim filed in September 2009, Charles Schwab & Co., Inc. alleged the misuse of Schwab client information by Respondent Colvin. In the Matter of the Arbitration Between Charles Schwab & Co., Inc., Claimant, vs. Kristian Daniel Colvin, Respondent (FINRA Arbitration 09-05471, October 21, 2010).
Okay, that's the short and sweet version of this arbitration. Frankly, a fairly garden-variety intra-industry dispute. However, seems that there may have been a tad more going on here because, frankly, if you consider just the Statement of Claim, it looks like Schwab sort of went ballistic.
As to the outcome -- whoa! What the hell was Schwab thinking with this one? Talk about getting hoisted on one's own petard. Kaboom. Schwab starts this legal to-do and then gets socked with over $200,000 in their adversary's legal fees. Talk about miscalculating.
READ BILL SINGER'S COMPREHENSIVE ANALYSIS OF THIS CASE AT: