Shearson Lehman Hutton, Inc v. Jablonski.
After closing its Red Bank, NJ office, Shearson Lehman Hutton brought a promissory note claim against its former registered representative. Mike Bishop represented the former employee and was successful in obtaining an arbitration award that not only denied Shearson’s claim in its entirety, but also granted $35,000 in punitive damages to Mr. Jablonski. The award also required Shearson to amend the reason for termination on Mr. Jablonski’s Form U5.
The Seibels Bruce Group, Inc., v. Prudential Securities, Incorporated and Danzell
Brian Smiley and Mike Bishop represented a former Prudential Securities registered representative who, along with Prudential Securities, was sued by an insurance company which claimed it had lost over $5,000,000 on bond trading as a result of the Respondents’ breach of fiduciary duty, negligence, and breach of contract. The registered representative denied any liability and contended that the Claimant, an insurance company which had invested its own considerable reserves for many years, was highly sophisticated and was fully advised of all risks of the trading strategy which it chose to employ. After considering the Respondents’ Motions to Dismiss, an NASD arbitration panel dismissed the insurance company’s case with prejudice and then set a hearing on the Respondents’ request for sanctions and attorneys’ fees as a result of having to defend a frivolous claim. In a negotiated but public settlement, the insurance company agreed to pay the registered representative and the firm $400,000, together with all arbitration fees and costs. In addition, the insurance company agreed to provide a letter exonerating the registered representative from any allegations of misconduct and to cooperate in expunging all references to the claims asserted against him from regulatory filings.
Sam Steger v. Olde Discount Corp., Ted Thomsen, Doug Telepman and Ernest Jacob Olde
Mike Von Borsig and Martha Beatriz Von Borsig v. Olde Discount Corp., Ernest Jacob Olde and Randy Saunders
Ronald and Lyn Parks v. Olde Discount Corp., Todd Bukaty, Barry C. Wheeles and Ernest J. Olde
Bharat Das Agarwal, Individually and as Trustee v. Olde Discount Corp., John Koczarak, Ernest Olde, Stanley Snider and Daniel Katzman and 3 John Does
In each of these cases, Brian Smiley was lead counsel in representing the founder of Olde Discount Corporation in suits brought by clients of the brokerage firm. The claimants in these cases alleged that Mr. Olde, who subsequently sold his interest in the firm to H&R Block, Inc., was liable as a “control person” for alleged wrongdoing by the brokerage. In all of these cases Mr. Olde was either dismissed on motion or exonerated on the basis of evidence presented at the hearing. In two of the cases, the arbitrators assessed substantial hearing fees against the claimants.