Can JPMorgan Be Forced To Pay MF Global Customers' Claims?

Posted On: December 21, 2011

The reports are that JP Morgan suspected some MFGlobal funds it received were customer deposits.
…”But JPMorgan was not satisfied. The bank once again contacted Mr. Corzine, this time requesting a guarantee in writing.”…..[DealBook article 12/21/11]
JP Morgan asked several times for a letter because they suspected, that MF Global was sending customer money. If a MF Global customer files a civil theft lawsuit (in Florida a win gets double the theft) or a FINRA arbitration claim....JP Morgan may have to payout.

It gets worse...maybe fraud or RICO.........two actors, with knowledge, acting to advance a criminal enterprise....conspiracy (punitive damages)...RICO (more than one MF Global customer's money was removed from segregated funds)?

Take a look at possession of stolen property statutes. (Best place? Look online for jury instructions on possession of stolen property). lawyers can argue that JP Morgan suspected that the funds were from segregated customer accounts. JP Morgan can be a target for a FINRA claim, civil theft suit ( remember the NYT article about a single mother in Fort Lauderdale) or a class action by customers with deposited funds at MF Global.

New Rules for Expungement of Certain Broker Check Complaints

Posted On: December 20, 2011

December 2011 may be a watershed date in the battle for fairness for stockbrokers. Constantly barraged by complaints, which are often no more than attempted extortion, the FINRA board may make some rule changes. It's a modest beginning; but it's a start. The proposal would amend the arbitration procedures adopting rules for expunction of consumer complaints for parties that are not named. You need to read that again: the new rules, and I'm quoting from a FINRA press release, better yet I'll just let you read it: “….new rules that would permit persons who are the "subject of" allegations of sales practice violations made in arbitration claims, but who are not named as parties to the arbitration, to seek expungement relief by initiating In re expungement proceedings. “ Albeit not a breakthrough….. it does represent the first of what should be many steps towards a level playing field in fairness for brokers who are the victim of consumer complaints that are little more than money-grabs. It needs to be done so that the true purpose of Broker Check, that is to apprise the public of financial advisors who are performing below standard, can be identified fairly without maligning the entire industry. More news will follow as we move forward toward Broker Check becoming a meaningful vehicle for the general public to become aware of broker malfeasance.


Posted On: December 19, 2011

A customer complaint, once filed, is technically a public record. Public records are subject to state control and cannot be expunged without an order from U.S. federal court. If your arbitration award includes an order of expunction; contact a securities lawyer and use the federal court to get it off Broker Check. When your federal court action starts FINRA is noticed and the process begins. It takes anywhere from 3 to 6 months and 10-20 hours of attorney time to complete. Send me a copy of your arbitrator award and I can let you know exactly which of the four avenues available to you would get the complaint removed from broker check. 1) Rule 2080 can be used to get a complaint expunged from Broker Check, 2) a special type of FINRA arbitration can get it removed from Broker Check, 3) sometimes all it takes is a letter to FINRA, and….. 4) U.S. Federal Court order. Get your house in order, and don’t be afraid to speak out for yourself if you have been wronged by a frivolous or false complaint to FINRA.

Expunging CRD Information for Stock Brokers on Broker Check

Posted On: December 9, 2011

FINRA Rule 2080 is the stock broker’s most effective route to having a customer complaint removed from Broker Check. You know this because complaints are sent to FINRA on the member’s U5 report or your own U4 and then appear on Broker Check. Unless FINRA voluntarily decides to remove the complaint (for reasons go to Rule 2080) the only way to get them off is to file an In Re Expungement action in Federal Court. For a free review of your case send a copy of the complaint and the arbitrator's ruling that recommends expunction. Call me first so I can expect your mail. Ralph Behr, 888 SE Third Ave., Suite 400, Fort Lauderdale, FL 33316 or call: 1-800-761-3446.

Removing Customer Complaints from Broker Check

Posted On: December 5, 2011

Financial Advisors can have customer complaints removed from Broker Check. My office provides this service to Financial Advisors. The number of complaints removed dropped after 2004, (when the rules changed), but a Rule 2080 removal does get results: the process works and Broker Check removes the complaint. If you are a Financial Advisor and you want more information, or help, for a Rule 2080 Expungement action contact attorney Ralph Behr at 1-800-761-3446 or email me at or refer to my office website for more information. A 2080 Rule action is: OBTAINING AN ORDER OF EXPUNGEMENT OF CUSTOMER DISPUTE INFORMATION FROM THE CENTRAL REGISTRATION DEPOSITORY [CRD] SYSTEM.