Joshpe Law Group Wins FINRA Verdict Against Morgan Stanley
NEW YORK, Feb. 3, 2015 /PRNewswire/ -- Joshpe Law Group LLP won a Financial Industry Regulatory Authority (FINRA) arbitration verdict of over $200,000 for its client, Dr. Barry Mankowitz, against Morgan Stanley Smith Barney. The claim arose from Dr. Mankowitz's attempted purchase in 2001 of shares of stock for his IRA account. Although he received a confirmation of the purchase at the time, Morgan Stanley later claimed that he cancelled the purchase and therefore never owned the stock, thus depriving him of the value of the stock's appreciation and annual distributions.
Mankowitz thought he owned the stock for over ten years, and the company whose stock he tried to purchase, Plains All American Pipeline, sent him K-1's each year showing distributions that should have been credited to his account. When he inquired about the location of the shares, however, Morgan Stanley (formerly Salomon Smith Barney), stated initially that the stock was held in the firm's lost property department. It then changed its position, saying that Mankowitz had cancelled his original purchase order, an assertion Mankowitz vehemently denied.
The verdict came several weeks after a two-day arbitration trial at FINRA's headquarters in lower Manhattan.
Dr. Mankowitz said, "I am very pleased to have been vindicated with this outcome and am grateful to the arbitrators for hearing my story." Joshpe Law Group released a statement, saying, "Shame on Morgan Stanley for its dismissive attitude towards our client throughout this process and for making him expend time and money to recoup what was rightfully his. This is a cautionary tale for retail investors in their dealings with financial brokers. Thankfully, this story has a happy ending."
Most commercial disputes with financial brokers are subject to mandatory FINRA arbitration, a forum that is notoriously challenging for customers. In 2014, FINRA arbitration panels awarded customers damages in only 38% of cases decided, an all-time reported low for FINRA. In recent years, legislators and regulators have considered banning mandatory arbitration clauses in financial industry contracts with customers. However, the industry has lobbied aggressively to maintain the mandatory arbitration system.
Case # 13-03115
Joshpe Law Group LLP is a firm full service corporate and litigation law firm based in Manhattan.
CONTACT: |
|
Brett Joshpe, [email protected] |
Edward Paltzik, [email protected] |
(646) 820-5130 / (917) 828-6237 |
(646) 820-6701 / (516) 526-0341 |
SOURCE Joshpe Law Group LLP
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