A panel of arbitrators issued their ruling in a dispute between the leader of an Ameriprise team and his former colleague, AdvisorHub reported.
The three Financial Industry Regulatory Authority arbitrators ordered Erin Scannell to pay $450,000 to his ex-associate Andre Selfa. The conflict began in 2022 when Selfa and another team member left Ameriprise to join independent broker-dealer Osaic Wealth.
Scannell filed suit against Selfa, accusing him of breach of contract and conversion, and seeking more than $1 million in damages and legal costs. Also named in the suit was another former team member who joined Selfa in leaving for Osaic, Austin Scott. Selfa denied the allegations and counterclaimed for $2.5 million in damages for claims including defamation and wrongful interference with business relationships. Those claims were denied by Scannell.
The FINRA arbitrators denied Erin Scannell’s claims and ordered him and his former firm to pay Selfa $150,000 in damages and $300,000 in attorney fees.
Scannell did win a preliminary injunction in 2022 that upheld Scott’s non-solicitation agreements and barred him from soliciting Scannell’s clients with an exception for 24 customers. Scannell separately settled with Scott for an undisclosed sum.
“My client is disappointed in the result against former employee Andre Selfa but is pleased with obtaining a TRO against and receiving a settlement from Andre’s business associate Austin Scott,” Scannell’s lawyer, Brandon Taafe of the Shumaker firm in Sarasota, Florida, said in a statement.
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