FINRA arbitration panel issues mixed decision in case of broker who left UBS for Wells Fargo

On Behalf of | Oct 8, 2021 | FINRA Compliance

An arbitration panel for the Financial Industry Regulatory Authority has held a former broker for UBS Wealth Management USA liable for nearly $1.9 million, according to AdvisorHub. William J. Paynter, an Arizona broker who left the firm in April 2017, will be responsible for repaying the balance on four promissory notes as well as 75% of the interest that accrued on notes starting from his resignation. He was also ordered to return customer contact information he may have taken improperly to his new firm, Wells Fargo Advisors.

But the three-member FINRA panel also handed Paynter a partial victory in its arbitration award by ordering his former employer to pay him $200,000 in damages for his counterclaim of constructive discharge and $100,000 for allegations that the firm had misrepresented its loan program. He had been seeking damages amounting to over $1 million.

Paynter came to UBS in 2014 after spending three years with Morgan Stanley. After he left UBS, the firm filed a claim alleging breach of contract of four promissory notes Paynter executed in 2014 and 2015. He was also accused of misappropriating confidential customer information.

His BrokerCheck report includes two disputes settled with clients in 2017 involving alleged unsuitable investments. Paynter denied the allegations.

The attorneys at Lewitas Hyman have handled thousands of promissory note matters for some of the largest financial services firms in the world, as well as on behalf of registered representatives. If you need guidance on matters related to promissory or forgivable notes, contact Lewitas Hyman at (312) 291-4600 or through our online contact form for a free consultation.

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