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Former J.P. Morgan broker sues to overturn FINRA arbitration award

On Behalf of | Mar 1, 2022 | Securities and Compliance

A former broker for J.P. Morgan Advisors who was terminated over his performance is going to court to try and reverse a ruling against him by a Financial Industry Regulatory Authority arbitration panel, according to AdvisorHub.

Andrew Graves was discharged by J.P. Morgan in 2018, but claimed he was defamed by the firm on his FINRA Form U5, which tracks the employment history of registered representatives and the circumstances surrounding why their registration with a firm terminated.

Morgan alleged that J.P. Morgan misrepresented on his U5 that he had failed to meet performance requirements. He claimed it was because the firm wanted to keep $83 million in assets he had transferred when he arrived from Credit Suisse.
The FINRA arbitration panel rejected Graves’ claim that his employer had engaged in unjust enrichment, and ordered him to pay nearly $361,000 along with interest for a promissory note.

But in a lawsuit filed last week in New York state court, Graves asked for another arbitration hearing over the dispute. He cited a New York state law prohibiting inaccurate information on Form U5. Graves also said he had not been given the chance to prove that J.P. Morgan misrepresented the amount of assets he had brought to the company after leaving Credit Suisse.

A J.P. Morgan spokeswoman declined to comment in the AdvisorHub report.

The attorneys at Lewitas Hyman blend industry and regulatory experience when representing financial professionals in Form U5 disputes and other related concerns. If you are concerned that you may be, or if you already have been, terminated from your firm, or if you believe you have inaccurate information on your Form U5, we invite you to contact us at (888) 655 6002 or through our online contact form to schedule a free consultation.