Sanctuary Wealth ordered to pay $2M arbitration award to former CEO

On Behalf of | Dec 8, 2022 | Firm Transition

An arbitration panel has sided with an Indiana broker-dealer in a dispute with his former company over the circumstances surrounding his departure, AdvisorHub reports.

The Financial Industry Regulatory Authority arbitrators ordered Indianapolis-based Sanctuary Wealth and its predecessor firm, David A. Noyes & Co., to pay over $2 million in compensatory damages to Mark Damer, the former CEO of Noyes.

Damer led Noyes from 2014 through 2018 but stepped down after the firm was acquired by Sanctuary and he became a vice chair of the board. The firm terminated him in June 2019 over what it said were “allegations concerning the accuracy and completeness of certifications involving the firm’s compliance and supervisory processes.”

Damer denied the characterization of his departure contained in his BrokerCheck report and filed a lawsuit against the firm. The case was sent to a FINRA arbitration panel, with Damer alleging breach of his employment contract and its amendment, tortious interference with business relationships, conversion, fraud and defamation.

Along with the compensatory damages awarded to Damer, the FINRA panel authorized him to clear the termination notice from his record. The three panelists said the reason for his discharge should be replaced with the phrase, “Company wishes to move in a different strategic direction.”

Damer’s attorney said the award showed his client had been vindicated of any wrongdoing and was wrongfully discharged. A Sanctuary spokeswoman said the company stands by its decision to no longer employ Damer and said it was pleased that he had been ordered to forfeit 6,200 shares of Noyes to Sanctuary. No explanation was provided for the arbitration panel’s decision.

Lewitas Hyman routinely represents financial advisors and other registered representatives who were wrongfully terminated by their firm. Our attorneys take a thoughtful approach to clients’ cases by first trying to work with the terminating firm concerning the Form U5 disclosure. When necessary, our attorneys are prepared to file wrongful termination and defamation claims. We are prepared to assist when the circumstances surrounding your termination are wrongful. Contact Lewitas Hyman at (844) 651-2643 or through our online contact form for a free consultation.

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