J.P. Morgan Securities’ request for $39.8 million in damages against one of its former advisors was denied by a Financial Industry Regulatory Authority arbitration panel, Think Advisor reports.
In its arbitration filing, J.P. Morgan alleged that ex-advisor Edward L. Turley “unjustly enriched himself by brazenly lying to [the firm] and breaching its policies over several years.” Turley was fired by J.P. Morgan in 2021, and was barred by the Financial Industry Regulatory Authority the following year after refusing to appear for testimony in an inquiry about his trading in customer accounts.
Turley’s clients at J.P. Morgan sought some $140 million in damages after incurring losses in a sophisticated investment strategy that they said was unsuitable, and the bank settled those claims for about $55.7 million,
In its ruling last month, the FINRA arbitration panel not only denied J.P. Morgan’s request for damages but said that the firm must pay Turley $520,000 in attorneys’ fees and other costs. No reason was given by FINRA for the decision. J.P. Morgan declined to comment.
Turley was discharged by JP Morgan after several clients initiated FINRA arbitrations against him alleging trading violations.
In 2020, JP Morgan paid more than $11.5 million to settle a customer complaint against Turley that asserted multiple infractions, including breach of contract and warranties; promissory estoppel; violation of Consumer Protection and Deceptive Trade Practices Act; violation of state securities laws; statutory fraud; and breach of fiduciary duty.
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