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Former First Republic broker files appeal in dispute over recruiting loan balance

On Behalf of | Oct 14, 2024 | Firm News

A former broker for First Republic Bank has filed a notice of appeal in his ongoing legal dispute against the company, according to AdvisorHub.

Paul Feinstein, an advisor based in Los Angeles, launched the battle in February 2020 with an arbitration claim over a $5 million recruiting loan balance received when he was hired.  Feinstein, who had been with First Republic since 2017, alleged the bank took actions that made it intolerable for him to stay in his job, and did not live up to promises made when he was recruited from UBS Wealth Management USA.

Feinstein’s notice of appeal seeks to keep his case in arbitration.  His complaint states that First Republic did not provide promised support for his options trading strategies, forced some clients to leave because of their association with a certain tax advisor and ultimately launched an internal investigation into allegations that he had sent client information to his personal emails.

“First Republic’s unlawful actions intentionally created intolerable and aggravated working conditions, making it impossible for Mr. Feinstein to remain at the firm,” wrote his lawyer, Ross B. Intelisano of Rich, Intelisano & Katz.

Feinstein, who now owns Audent Global Asset Management in West Hollywood, is seeking unspecified damages for breach of contract, fraudulent inducement and defamation.

First Republic, which is now represented by Federal Deposit Insurance Corporation, the receiver for the failed bank, is seeking full repayment of Feinstein’s note balance plus interest.  It alleges Feinstein’s complaint is an attempt to avoid repaying his balance.

“Instead of repaying the balance, however, Feinstein filed this FINRA claim in an obvious effort to position himself as a ‘victim’ and offer some grounds—however false—to avoid repaying his debt,” the bank said in its counterclaim.

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.