Members Firms and Associated Persons with Unpaid Customer Arbitration Awards

FINRA is making available in one place on its website a list of firms and individuals responsible for unpaid customer arbitration awards. FINRA is providing the information in this new format to provide greater transparency around those firms and individuals with unpaid arbitration awards and to make this information more readily accessible to investors. The information will also continue to appear on the firm’s or individual’s BrokerCheck report.

The list includes the names of firms and individuals whose FINRA registration has been terminated, suspended, canceled or revoked, or who have been expelled from FINRA.1 These firms and individuals are no longer FINRA members or associated with a FINRA member, although they may be operating in another area of the financial services industry where FINRA registration is not required. From 2012-2016, FINRA suspended 154 individuals for non-payment of arbitration awards. During this same time period, there were on average 635,778 individuals registered with FINRA.

In addition, the list shows those firms and individuals with unpaid customer arbitration awards, but where bankruptcy is a defense to the non-payment. These firms or individuals may be active in the brokerage industry notwithstanding the unpaid award due to the bankruptcy defense to non-payment.2

Background

In FINRA arbitration, the majority of customer cases—approximately 69 percent—result in settlements reached by the parties;3 typically, approximately 18 percent of cases proceed to award, and two percent result in unpaid awards.4

As described in detail in FINRA’s Discussion Paper, FINRA Perspectives on Customer Recovery and on FINRA’s website under Statistics on Unpaid Customer Awards in FINRA Arbitration, under FINRA rules, a respondent must pay a monetary award within 30 days of receipt, unless the respondent has a defense to non-payment, such as bankruptcy.5 If a member firm or associated person fails to comply with an arbitration award or a settlement agreement related to an arbitration, FINRA staff notifies such firm or associated person in writing that the failure to comply within 21 days of service of the notice will result in a suspension of membership or a suspension from associating with any member.6 A member or person served with a notice may request a hearing setting forth all defenses to the FINRA action. If a member or person does not timely request a hearing, the suspension or cancellation specified in the notice shall become effective 21 days after the service of the notice and the notice shall constitute final FINRA action.

In each suspension action, FINRA creates a record that the firm or associated person failed to demonstrate payment of an arbitration award, and prevents the firm or associated person from being an active FINRA member or associating with a FINRA member until the award has been satisfied. Firms with unpaid awards cannot re-register without satisfying the award.7 Individuals cannot register as representatives of any brokerage firm without paying or discharging the outstanding award.

Most unpaid customer arbitration awards are rendered against firms or individuals whose FINRA registration has been terminated, suspended, canceled or revoked, or who have been expelled from FINRA. These firms and individuals are generally referred to as “inactive,” and are no longer FINRA members or associated with a FINRA member, although they may continue to operate in another area of the financial services industry where FINRA registration is not required. Firms and individuals can become inactive prior to an arbitration claim being filed, during an arbitration proceeding or subsequent to an arbitration award, and this status can be caused by FINRA’s action or the firm’s or individual’s own voluntary action.

The below information is current as of October 19, 2018.

TABLE 1 - ASSOCIATED PERSONS SUSPENDED FOR NON-PAYMENT OF A CUSTOMER ARBITRATION AWARD (2012 – 2016)

Party Name CRD
ACKERMAN, JAMES CURTIS 1641924
AHMANN, JAMES JOSEPH 2983399
ALIJAJ, ENVER RAHMAN 4943780
ALVEY, ALBERT CLARK 3088610
ANDERSON, JASON EDWARD 4195317
ANDREYEVA, TATYANA 2875136
ARNOLD, PAUL DAVID 2278472
BADER, ZACHARY T. 5902742
BAILEY, WILLIAM AUSTIN 1085215
BALCHANDANI, SHONDEEP SAJAN 5165930
BALDWIN, SHAWN DERRICK MR. 4281564
BANKS, LAWRENCE ALLEN 5429858
BEHRENDS, LARRY IVAN 16971
BELESIS, ANASTASIOS P 2707354
BELONGE, CHRISTIPHER LYNN 4223871
BELYAEV, VLADIMIR 6056976
BENTIVEGNA, NICHOLAS P 4636923
BERGER, GREGG MS 2191694
BERTHOLET, JEAN-LOUIS 4441892
BHAGWANI, NAVEEN K 5423037
BHASIN, NIYUKT RAGHU 2282048
BOHACK, RICHARD EDWARD 2239191
BORAKOWSKI, BRIAN MATT 4093679
BRAHMBHATT, JINESH PRAVIN 2491299
BROWN, LINFORD ANTONIO JR 2456328
BROWN, RICHARD LYNDON 3245291
BYL, MICHAEL JAMES 1204677
CARLSON, JOEL WILLIAM 2844760
CARR, BRIAN P 2577346
CARRINO, JOSEPH MICHAEL JR 2563438
CARRIS, GEORGE WILLIAM MR. 3079577
CASOLO, MARK CARMEN 1158074
CASSONE, VICTOR ROSARIO 2312167
CHAPMAN, WILLIAM DEAN JR 2465420
CHELLIAH, MAURICE JOSEPH 4385058
CLARK, JERRY EATON JR 4575973
CLYBURN, MCKYLE 2829182
COHEN, ROY 1633948
CORONADO, JAIME XAVIER 4001702
CRAWFORD, JAMES FILLMORE 1327638
CRAWFORD, SHAWN PATRICK 2759034
CRUCIANI, JASON M 4014764
DALY, RADCLIFFE ROBERT 4663605
DAVIS, CHARLES BARNETT JR 61845
DENISOV, ALEKSANDR YURIEVICH 4586928
DESIDERIO, BARBARA LUCILLE 2080713
DEVINEY, BRENT KEITH 2131402
DIAZ, ANTHONY 4131948
DUVAL, CHRISTOPHER DEAN 2805500
DYSON, HUGH MONROE JR 827628
ELMAZI, NIAZ 2992689
FISHER, ANTHONY JOHN 2428633
FLEMMING, GREGORY JR 2882842
GAUL, JAMES CARL 218833
GENITRINI, CHRISTIAN 3277581
GIULIANO III, ANTHONY FRANK 5459072
GOLD, LEE ALEXANDER 1923251
GOLDSTEIN, GREGORY EVAN 2412387
GOLIGHTLY, WILLARD LEE 4395250
GREEN, ALLEN MICHAEL 824126
GREER, JOHN MICHAEL SR 1969389
GREGG, DAVID JOSEPH 1500899
GRIVAS, STEPHEN 1829703
GUYETTE, JOHN BRADY 1711681
HAGERMAN, BRIAN JOSEPH 2115892
HAHN, KARL EDWARD 2487638
HAMILTON, OLORI DENNIS 2956727
HEIMOWITZ, AARON LEONARD 241866
HEN, AVIV MICHAEL 2927545
HOLEVE, MITCHELL I 2579937
HOLT, MARK DAVID 3150622
HUNTER, DONALD HORTON JR 1849030
ISAACS, OSI TREVOR 2724629
JAKUBIAK, ROBERT JOSEPH 2297081
JOHNSON, JOHN MICHAEL 5214417
KALATOUDIS, CHRISTOS ANGELO 4888800
KAPLOWITZ, MARK WILLIAM 824379
KHAN, MUHAMMAD AKRAM 1400089
KINNEY, MICHAEL THOMAS 4692626
KIRSHBAUM, LAWRENCE GARY 270856
KLEIN, FLORENCE ROSENTHAL 271361
KRAUSE, JEROME SCOTT 1582647
KUNZ, KEVIN DEE 1274540
LAVOLPE, MICHAEL SCOTT 5054798
LEE, ROBERT EDWARD JR 1824202
LEX, WILLIAM FRANCIS 308990
LINSINBIGLER, MICHAEL THOMAS 4072020
LODATI, ANTHONY F 4877082
LUCANDER, HENRY 1017582
LUSTIG, JAY HOWARD 849320
LYNCH, MICHAEL VAN 3167788
LYON, JEFFREY G 5385043
MALLETT, MARY HELEN CAPRICE 1345520
MANDELL, ROSS H 1219720
MARVIN, RONALD 722277
MCELHENNY, SCOTT DAVID 2623701
MCKOY, STEPHEN DIRK 4892097
MCLEAN, DEVON COULIN 4072332
MENENDEZ, NATHALO IAN 4882003
MIGNONE, DANIEL RICHARD 3255740
MILES, KENNETH CHARLES 812979
MILLS, MARK STEVEN 1979733
MITCHELL, JAMES MARVIN 3110555
MOORE, CHARLES J 4525896
MOSCHETTA, RONALD 1100365
MURPHY, EDWARD THOMAS 3041818
NOE, DAVID HAROLD 1629962
NUNEZ, JEFFREY GEORGE 1580759
PARKER, JAMES RONALD 356630
PENNA, ARTHUR JAMES 851814
PEREZ, HECTOR 5431109
PETERSON, MELVIN LEE 859600
PETERSON, PETER MARTIN 2825535
PETTY, MARKEL DASHIELL 5217356
PIONK, SCOTT DOUGLAS 2056512
PITTMAN, BARRY 5492220
PIWOWARCZYK, JON EDWARD 723254
PIZELO, PHILIP ANTHONY 2429418
PORGES, BRENT MORGAN 4002626
PORTER, AARON VIRGIL 4354488
QUINZI, JOSEPH DOMINICK 5590651
RACHLIN, JEFFREY 823547
RAPUANO, JAMES MICHAEL JR 4900969
RAY, KRITTIBAS 3039388
ROBERTS, JAMES MICHAEL 871777
RODRIGUEZ, CASEY THOMAS 4870499
SALINO, ANTHONY JOHN 2162704
SCALI, JOSEPH GIUSEPPE JR 2564129
SCHMERMAN, RICHARD MARK 1302988
SCHULICK, BRETT STEPHEN 2243075
SCHULTZ, LYNN GORDON 1052349
SHEA, DANIEL DENNIS 1185950
SIMONE, BRIAN 5357610
SIMONE, STEVEN JOHN 2413602
SMALBACH, NEAL SETH 1459854
SMITH, GLEN EDWARD JR 1023145
SPOONER, GARY LEE 2394218
STEVENS, CAREY CHARLES 2344274
THEIS, DAVID ALAN 1422471
THORNES, JOHN THOMAS 2097878
THORNOCK, RUSSELL DAVID 446386
TILLGER, JOHN JOSEPH JR 1766765
TORRES, LAURENCE MICHAEL 2821373
TOWNE, ALYN LEE III 2552744
TOWNES, GREGORY ALAN 2601302
VACCARRO, CHARLES 2796589
VAN ZANDT, ROBERT HENRY 453496
VEITCH, DOUGLAS STUART SR 1744372
WALKER, EVERETT SCOVILLE JR 1799546
WEISNER, MORRIS CLINTON 1293948
WERBEL, LARRY STEVEN 828351
WILLIAMS, DAVID ALLEN 4350295
WOLLE, JOHN FREDRICK 5479607
WRIGHT, LOUIS ALBERT 4053503

TABLE 2 - ASSOCIATED PERSONS ASSERTING BANKRUPTCY AS A DEFENSE TO NON-PAYMENT OF A CUSTOMER ARBITRATION AWARD (2012 - 2016)

Party Name CRD
BELESIS, GEORGE 4860444
BESMAN, PASCAL MICHEL 1109095
BRONSTEIN, CARL SAMUEL 1777847
CASTELLANO, JOSEPH LOUIS 1158479
CHEN RODRIGUEZ, OTILIA DEL CARMEN 5041049
DIEHL, DAVID PAUL 2604969
FRIEDMAN, HARRY 2548017
GARVIN, DANIEL RICHARD 1481768
GAUTNEY, TIMOTHY MICHAEL 2552149
HORNE, BRIAN YOUNG 1830136
KAPSE, ARUN RAGHUVEER 5580069
LEVINE, SCOTT JORDAN 4401053
MACRONE, JOHN JOSEPH 2779961
MCCOY, DAVE MYRON 1386650
MILLEGAN, JAMES WOODWORTH 1200051
MILLER, DAVID KEITH 728491
MILLER, KELLY STOLTE 1336841
MONTANO, ALEXANDER GENE 1961932
PERRY, JOAN ANNE 502847
ROWE, NICHOLAS BERNARD 2109143
SWAYNE, WILLIAM MADISON II 440968
SWAYNE, WILLIAM MADISON III 4616158
TADDONIO, CRAIG SCOTT 4773787
TEUTONICO, PATRICK NICHOLAS 2875434
TKATCHENKO, ANDREY V 2712245
TOWT, RICHARD WARREN 448621
TUROCI, CHRISTOPHER JAMES 3058991
WOMACK, CLAY HARRISS 4095147
WOODARD, NEAL MILLER 5461015

TABLE 3 - INACTIVE FIRMS WITH UNPAID CUSTOMER ARBITRATION AWARDS8 (2012 – 2016)

Party Name CRD
ACHILLES SECURITIES, LLC 133542
ALETHEIA SECURITIES, INC., 44784
ALLIED BEACON PARTNERS, INC. 46227
ALTERNATIVE WEALTH STRATEGIES, INC. 130933
AMERICAN BEACON PARTNERS, INC. 15791
AMERICAN CLASSIC FINANCIAL COMPANY 24099
ANDERSON & STRUDWICK, INCORPORATED 48
AURA FINANCIAL SERVICES, INC. 42822
AVENIR FINANCIAL GROUP, INC. 148490
BIRKELBACH INVESTMENT SECURITIES, INC. 11490
BLUECHIP SECURITIES, INC. 45726
BOOGIE INVESTMENT GROUP, INC. 142200
BROOKSTONE SECURITIES, INC. 13366
BROOKVILLE CAPITAL PARTNERS LLC. 102380
C.K. COOPER & COMPANY, INC. 106578
CAPITAL GROWTH FINANCIAL, LLC 41040
CAPITAL GROWTH RESOURCES 7779
CAPSTONE PARTNERS, L.C. 35784
CAPWEST SECURITIES, INC. 30002
CHARLES MORGAN SECURITIES, INC. 138887
CM SECURITIES, LLC 127136
CMG INSTITUTIONAL TRADING LLC 47264
COMMUNITY BANKERS SECURITIES, LLC 42794
CRAIG SCOTT CAPITAL, LLC 155924
CULLUM & BURKS SECURITIES, INC. 46600
DELPHI SECURITIES CORPORATION 156529
DEWAAY FINANCIAL NETWORK, LLC 30767
DIRECT CAPITAL SECURITIES, INC. 29639
EKN FINANCIAL SERVICES INC. 113525
EMMETT A LARKIN COMPANY, INC. 6625
FINANCIAL ADVISERS OF AMERICA, LLC 142170
FIRST MIDWEST SECURITIES, INC. 21786
GOLDEN BENEFICIAL SECURITIES CORPORATION 48029
GRACE FINANCIAL GROUP LLC 104133
GREAT NORTHERN FINANCIAL SECURITIES, INC. 113054
HALCYON CABOT PARTNERS, LTD. 32664
HARRISON DOUGLAS, INC. 16515
INVESTMENT MANAGEMENT CORPORATION 37196
JOHN CARRIS INVESTMENTS LLC 145767
JOHN THOMAS FINANCIAL 40982
LAWSON FINANCIAL CORPORATION 15261
LEGEND SECURITIES, INC. 44952
LIGHTHOUSE CAPITAL CORPORATION 41812
MARQUIS FINANCIAL SERVICES OF INDIANA INC. 20733
MCL FINANCIAL GROUP, INC. 41180
MEADOWBROOK SECURITIES LLC 10578
MERCER CAPITAL LTD. 104012
MORGAN PEABODY, INC. 38306
NDX TRADING, INC. 39940
NEWPORT COAST SECURITIES, INC. 16944
NSM SECURITIES, INC. 134357
OBSIDIAN FINANCIAL GROUP, LLC 104255
PACIFIC AMERICAN SECURITIES, LLC 42999
PACIFIC WEST SECURITIES, INC. 6390
PERRIN, HOLDEN AND DAVENPORT CAPITAL CORP. 38785
POINTE ATLANTIC, INC 46599
PRESTIGE FINANCIAL CENTER, INC. 30407
PRIMESOLUTIONS SECURITIES, INC. 46017
R.W. TOWT & ASSOCIATES 128837
RESOURCE HORIZONS GROUP LLC 104368
RETIREMENT CAPITAL GROUP SECURITIES, INC. 126716
RETIREMENT SECURITIES, INC. 43740
ROCKWELL GLOBAL CAPITAL LLC 142485
SAN FRANCISCO SECURITIES, INC. 43629
SECURITIES NETWORK LLC 133785
SOUTHRIDGE INVESTMENT GROUP LLC 45531
STEELPOINT SECURITIES, LLC 155847
STERLING ENTERPRISES GROUP, INC. 44915
SUCCESS TRADE SECURITIES, INC. 46027
TAKE CHARGE FINANCIAL, INC. 16724
THORNES & ASSOCIATES, INC. INVESTMENT SECURITIES 40868
TRADERIGHT CORP. 45598
UINTA INVESTMENTS, INC. 39954
UNITED SECURITIES ALLIANCE, INC. 36487
WESTROCK ADVISORS, INC. 114338
WFP SECURITIES CORPORATION 35098
WHITE PACIFIC SECURITIES, INC. 42505
WORKMAN SECURITIES CORPORATION 31898

TABLE 4 - FIRMS ASSERTING BANKRUPTCY AS A DEFENSE TO NON-PAYMENT OF A CUSTOMER ARBITRATION AWARD (2012 – 2016)

Party Name CRD
CAMBRIDGE LEGACY SECURITIES L.L.C. 103722
FINTEGRA, LLC 16741
J.W. MILLEGAN, INC. 40116
SLOAN SECURITIES CORP. 17930
THINKEQUITY LLC 44274

1 Individuals who have been suspended by FINRA will not appear on this list until the decision becomes final FINRA action and the time period provided for an appeal permitted under the Exchange Act has expired. 

2 The “automatic stay” under the Bankruptcy Code generally stays any action to collect a debt owed by a person that has filed a bankruptcy petition (or become the subject of a liquidation under the Securities Investor Protection Act (SIPA)). In the unusual circumstance where a bankruptcy court determines an arbitration award not to be dischargeable in the bankruptcy (or SIPA liquidation), and the customer claimant notifies FINRA of this fact, FINRA will commence expedited suspension proceedings against the firm or individual under FINRA Rule 9554.

Creditors with claims allowed by the bankruptcy court generally are entitled to receive distributions or payments on their claims from the liquidation of the bankrupt person’s assets (or under a plan approved by the court in the case of a bankruptcy under Chapter 11 or 13 of the Bankruptcy Code). Although these payments may be considerably less than the amount of the claim (and may even be zero), they nevertheless generally discharge the claim. Customers with arbitration awards against a firm or associated person that has entered bankruptcy therefore may receive only a fraction of their award, or even nothing, when that award is discharged in bankruptcy.

3 In FINRA’s experience, the vast majority of settlements result in monetary relief for the customer claimant.

4 These percentages are based on customer cases closed between 2012-2016. While FINRA’s arbitration forum is used for both intra-industry and customer disputes, these data are limited to customer disputes. All data provided are current as of its publication date, and may change due to subsequent developments.

5 See FINRA Rule 12904(j). An associated person or firm has four available defenses to FINRA disciplinary measures for non-payment in customer cases: (1) the firm or associated person paid the award in full; (2) the parties have agreed to installment payments or have otherwise settled the matter; (3) the firm or associated person has filed a timely motion to vacate or modify the award and such motion has not been denied; and (4) the firm or associated person has filed a petition in bankruptcy and the bankruptcy proceeding is pending or the award has been discharged by the bankruptcy court. See Notice to Members 00-55 (August 2000).

6 See FINRA Rule 9554. Also, FINRA can institute suspension proceedings against formerly associated persons for failing to pay an award or settlement in a matter submitted for arbitration or mediation pursuant to FINRA rules for a period of two years after the entry of the award or settlement. See Article V, Section 4(b) of the FINRA By-Laws; Notice to Members 04-57 (August 2004).

7 With respect to new member firms, in accordance with the standards for admission under the rules governing FINRA’s Membership Application Program, FINRA can presumptively deny a new membership application if the applicant or its associated persons are subject to an unpaid arbitration award. See NASD Rule 1014(a).

8 These firms are inactive because their FINRA registration has been terminated, suspended, canceled or revoked, or they have been expelled from FINRA. This inactive status could have been caused by FINRA’s action, such as a suspension proceeding for non-payment of an arbitration award, or by the firm’s own voluntary action, such as by filing a Form BDW (Uniform Request for Broker-Dealer Withdrawal). FINRA creates a record that the firm failed to pay an arbitration award and will prevent the firm from re-registering with FINRA without paying or discharging the outstanding award.