The Financial Industry Regulatory Authority has denied the claims of a former Osaic executive who went to arbitration in his dispute with the firm, Financial Advisor reports.
Jerome “Jerry” Murphy was the chief executive officer of FSC Securities Corp., owned by Osaic, from 2011 until 2017. He then became a co-partner of the Legacy One Group in Houston, one of FSC’s affiliated firms, and oversaw a branch office there until 2023..
Murphy subsequently filed a $10 million arbitration claim against FSC, citing accusations of defamation, breach of contract and tortious interference. He said FSC and Osaic had attempted to “steal his investment advisory business through deception and tortious interference with his business relations with his advisory business’s advisors and employees and their clients.” A FINRA arbitration panel rejected his claims.
FSC filed a counter-claim that included accusations of tortious interference and defamation but later withdrew some of its charges. FSC alleged that Murphy “deliberately defamed FSC and generated false concerns among the production group’s advisors by, among other matters, sending a blast email, with the sole purpose of interfering with FSC’s relationships with each of its advisors.”
Murphy, who was not available for comment for the Financial Advisor report, left the financial industry after 2023 and is not currently registered with FINRA. However, Osaic contends that Murphy took the name “Legacy One” with him, saying it believes “Jerry Murphy remains the owner of the Legacy One entity,” a brand name “under which Mr. Murphy has controlled and operated his business interests.”
Osaic expressed its satisfaction with the arbitration ruling, as well as the fact that Murphy was no longer part of the firm. “We always felt it was in the best interest of the advisors of the former Legacy One production group to have removed and replaced Mr. Murphy,” said Saumya Bhavsar, chief legal officer at Osaic. “We are thankful that the panel felt we acted in the most prudent manner, and we are pleased with the outcome.”
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