A panel of Financial Industry Regulatory Authority arbitrators have awarded compensatory damages to a broker who was fired by Wells Fargo, reports AdvisorHub.
The firm was ordered to pay $1.44 million to Harry Pappas Jr., who had been with Wells Fargo in Ponte Vedra Beach, Florida for 18 years before being terminated in 2022.
He accused Wells Fargo of wrongful termination, theft, breach of succession agreement and defamation on the Form U5 in a December 2022 complaint.
Pappas, who now runs a private wealth practice, was seeking more than $4.57 million in compensatory damages after alleging that Wells had improperly withheld his deferred pay and a loyalty bonus. He also had requested that the termination be expunged from his record.
FINRA’s panel of two public arbitrators and one tied to the industry did not explain their decision regarding the compensatory damages. They also denied Pappas’ request to expunge Wells’ termination allegations from his record.
It was reported that Pappas was fired by Wells after the company said he did not meet expectations related to interactions with colleagues. The concerns were not on his BrokerCheck record as they did not relate to compliance or sales practices.
Pappas did not return a request for comment and his lawyer, Curtis Carlson with Carlson & Associates in Coral Gables, Florida, declined to comment.
A spokesperson for Wells said they disagreed with the decision but declined to comment on whether the firm would appeal. After his departure from Wells, Pappas joined Ameriprise Financial Services.
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 (888) 655-6002 or through our online contact form for a free consultation.
