What if I get sued on an unrelated matter?

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Nov 19, 2009 10:10 pm

So, here I am... new at a wirehouse and lovin' it.  Out of the blue comes a threat to sue me from a company I did business with almost 10 years ago.  It is totally bogus (really).  But, since this is a sue-happy society... What would happen if 1) the wirehouse finds out and/or 2) God forbid, they win, and I have a judgment against me.  Is it bye-bye?  Or would they not care?

Nov 20, 2009 9:26 am

The wirehouse shoulnd't "find out".  You are required to disclose it.  Not disclosing it would be cause for immediate dismissal, and likely irreparable harm to your U5.  My recommendation - talk to your compliance department and let them know what's going on. 

Nov 20, 2009 9:49 am

Disclose,disclose,disclose. Can we be more straight forward?

Nov 20, 2009 11:21 am

And as long as the lawsuit is unrelated to the securites industry, or otherwise unsavory business practices, you should be fine.

 
but yes, disclose, disclose, disclose.
Nov 20, 2009 5:52 pm

Just tell them it's an off-balance sheet issue.

Nov 20, 2009 6:13 pm

Home from another day of studying for the 7.  Thanks to all.  Seems like I better disclose, huh? 

Nov 26, 2009 12:07 am
MrUnsure:

So, here I am... new at a wirehouse and lovin' it.  Out of the blue comes a threat to sue me from a company I did business with almost 10 years ago.  It is totally bogus (really).  But, since this is a sue-happy society... What would happen if 1) the wirehouse finds out and/or 2) God forbid, they win, and I have a judgment against me.  Is it bye-bye?  Or would they not care?


 
 
Each year you get a financial disclosure form to fill out......I forgot what the official term for this form is called, but each firm has it.......They ask you to disclose all your financial accounts and any legal issues you have.
 
I don't know if they ask about civil lawsuits, but if they do, then you would need to disclose it there.
 
To be safe, you should let them know......
If you hide it........and they find out......it's gonna be a problem.
If you hide it.....and lose the lawsuit......and garnish your wages......they'll find out anyway.
 
I would mention it to your compliance officer, who will probably want a copy of the lawsuit material.....
 
It sucks, but if it goes nowhere, it's not a big deal........
 
Good Luck.....
Nov 29, 2009 12:08 am

It has been beat to death. Disclose. odds are they will not care about the suit, but will care if they find out about it by themselves, and then.... your butt is canned.

Nov 30, 2009 10:26 pm

Much better idea to just disclose it earlier rather than waiting for it to be found out by the other party sooner or later..The situation will become worse by then. Keep it cool buddy. For as long as you know you haven't done anything wrong, then you'll be fine.

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