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Registered Rep Wins Expungement in Settled FINRA Customer Arbitration

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Jul 30, 2010 12:17 pm
 Last Man Standing Gets An Expungement 

In a FINRA Arbitration Statement of Claim dated June 10, 2008, Claimant Michael E. Caradimitropoulo sought $2,000,000 in compensatory damages plus other relief because of losses sustained in allegedly fraudulent transactions involving Nektar Therapuetics and Melco stock. Respondents GunnAllen Financial, Inc., the Concord Equity Group, L.L.C. and Anthony Tricarico generally denied the allegations, and Tricarico sought expungement of his Central Registration and Depository (CRD) record. In the Matter of the Arbitration Between Michael E. Caradimitropoulo, Claimant, vs. GunnAllen Financial, Inc., the Concord Equity Group,L.L.C. and Anthony Tricarico, Respondents. (FINRA Arbitration 08-01950, July, 23, 2010).

2009 Settlements

In September 2009, Claimant and Respondents GunnAllen and Tricarico entered into a settlement agreement.  In June 2010, Claimant and Respondents Concord and Tricarico entered into a separate settlement agreement.  Subsequent to the settlements, Respondent Tricarico requested a hearing on the issue of his expungement.

In April 2010, Respondent GunnAllen filed for bankruptcy and, as a result, all legal claims against that firm were stayed, and the FINRA Arbitration Panel made no determination with respect to any claims against the firm. 

On July 13, 2010, the FINRA Panel conducted a telephonic hearing to permit oral arguement and the submission of evidence on behalf of Tricarico's requested expungement. Claimant did not object to the expungement.


The FINRA Arbitration Panel found that the the majority of shares at issue were purchased through brokers other than Respondent Tricarico.  Moreover, the Panel determined that Tricarico "diligently kept Claimant informed of developments regarding the company (Nektar Therapeutics) whose shares were the major portion of the claimed losses in this matter."  Further, the Panel noted that Claimant had received numerous research reports on Nektar from Tricarico, and that Claimant had personally contacted certain officers of Nektar regarding the company's activities.  Finally, the Panel described Claimant as "sophisticated, regularly invested in high risk securities and was able to sustain losses in them, and made his own investment decisions."