Schwab Plays With Fire and Gets Burned in Intra-industry Arbitration

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Oct 26, 2010 10:46 am

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.


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