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FINRA Arbitration: Customer withdraws, RR seeks expungement

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Jun 4, 2010 12:18 pm

 Somehow, Someday, Somewhere -- a FINRA Customer arbitration

Acting as his own legal counsel, public customer Guy Girgenti filed a Financial Industry Regulatory Authority (FINRA) arbitration on March 12, 2009, seeking $160,000 in compensatory damages plus interest, attorneys’ fees, and costs., against Janney Montgomery Scott LLC and Janice Ginsburg. Pro Se Claimant Girgenti alleged causes of action for breach of contract, breach of fiduciary duty, unsuitable investments, negligence, failure to supervise, and respondeat superior. Guy Girgenti, Claimant, vs. Janney Montgomery Scott, LLC and Janice Ginsburg, Respondents (FINRA Arbitration 09-01381, May 26, 2010).

Respondents generally denied the allegations and asserted various affirmative defenses. On or about March 1,2010, Claimant Girgenti withdrew his claims against Respondents. Why?  As usual, the FINRA Decision offers sparse details about this case and even fewer explanations -- fact is, all that we bascially know is that Girgenti filed a Statement of Claim alleging the broad charges noted above, and then, nearly a year later, he picked up his chips and went home. All bets off.

Unfinished Business -- My Good Name

Although Girgenti may have been satisfied to walk away, Respondent Ginsburg would have none of that.  Her name was dragged into the case as a respondent, and that event was now on her Central Registration Depository (CRD) records -- Wall Street's equivalent of the dreaded High School "permanent record." As such, Registered Representative Ginsburg sought expungement of Girgenti’s allegations from her CRD files. Accordingly, the FINRA Arbitration Panel conducted a recorded telephonic hearing on April 9, 2010 so Ginsburg could present oral argument on her request for expungement.