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Chicago broker ordered to pay over $1.2 million in promissory note dispute with UBS

On Behalf of | Jan 19, 2022 | FINRA Compliance

A FINRA arbitration panel ordered a Chicago broker to pay his former firm over $1.2 million in a dispute over promissory notes, AdvisorHub reports.

The ruling came in the case of David J. Morris, who spent six years with UBS Wealth Management USA before departing in 2016 for Stifel, Nicolaus & Co. The following year, UBS claimed that Morris had not repaid the principal balance on ten promissory notes after the end of his employment.

FINRA’s panel of three arbitrators adjudicated the claim by approving a stipulated award in favor of UBS. Morris will have to pay nearly $918,000 in damages for the balance of the unpaid notes, along with interest, attorneys’ fees and costs, and late fees from the notes, according to an award letter.

The arbitrators also denied a counterclaim that had been filed by Morris for fraudulent inducement, in which he asked for an award equal to commissions he said he would have generated if UBS had “allowed him to facilitate certain transactions.”
AdvisorHub reported that Morris did not return a call asking for comment on the decision.

The ruling in the Morris case followed two previous arbitration victories for UBS last September in which the firm clawed back over $1 million owed in promissory notes from two of its former brokers.

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. In this capacity, we have handled claims before FINRA, AAA and JAMS arbitration panels in contested and protracted hearings. If you need guidance on matters related to promissory or forgivable notes, contact us at (888) 655 6002 or through our online contact form for a free consultation.