A panel of FINRA arbitrators ordered a former Florida broker to pay compensatory damages to his ex-wife over her claims of unsuitable trading in her accounts, Investment News reports.
Under the decision Barry S. Snyder, a former J.P. Morgan Securities broker, will have to pay $2.6 million to Elizabeth B. Snyder. Her arbitration claim focused on the trading of securities through margin, day trading and shorting stock.
The claim also cited specific stock investments such as Habitat Restaurants and Global Eagle Entertainment. Elizabeth Snyder’s attorney said that in 2015 Barry Snyder had placed most of her account in Habitat, and that when the stock dropped, she lost over $4 million in net equity.
The arbitration claim, filed in November 2018, asserted the following causes of action: common law fraud; constructive fraud; negligent misrepresentation; breach of fiduciary duty; negligent management; negligent supervision; and fraudulent concealment. The claim also named J.P. Morgan Securities and Deutsche Bank Securities, where Barry Snyder worked, as claimants.
Barry Snyder, J.P. Morgan Securities and Deutsche Bank Securities all denied the allegations.
Elizabeth Snyder originally had requested over $5.1 million, which included prejudgment interest of over $1 million. At the end of the hearing, she asked the arbitration panel to deduct the amounts she had reached in separate settlements with J.P. Morgan and Deutsche. The request for prejudgment interest was denied.
At Lewitas Hyman, we represent clients nationwide who have been the victims of unauthorized trading, breaches of fiduciary duty, and other forms of financial advisor misconduct and securities fraud. If your financial advisor made trades without your consent, you may be able to pursue a lawsuit to recoup your losses. To find out how we can help, contact us at (312) 291-4600 or use our online contact form to schedule a free consultation.