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Member 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 2012-2022, FINRA suspended 279 individuals for non-payment of arbitration awards. During this same time period, there were on average 631,000 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 cases closed in 2022, the majority of customer cases—75 percent—result in settlements reached by the parties;3 13 percent of cases proceed to award, and 1 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 December 2023.

TABLE 1 - ASSOCIATED PERSONS SUSPENDED FOR NON-PAYMENT OF A CUSTOMER ARBITRATION AWARD (2012 – 2022)

Party NameCRD
AHMANN, JAMES JOSEPH2983399
ALFANO, LAWRENCE JOSEPH2701389
ALIJAJ, ENVER RAHMAN4943780
ALLEN, DAVID ARTHUR2500427
ALVEY, ALBERT CLARK3088610
ANDERSON, JASON EDWARD4195317
ANDREYEVA, TATYANA2875136
ARNOLD, PAUL DAVID2278472
BADER, ZACHARY T.5902742
BADGER, BERKLEY CREIGHTON713972
BAILEY, WILLIAM AUSTIN1085215
BALCHANDANI, SHONDEEP SAJAN5165930
BALDWIN, SHAWN DERRICK MR.4281564
BALTAS, CHRIST ELIAS2570499
BANKS, LAWRENCE ALLEN5429858
BASRALIAN, GARY JOHN14385
BEHRENDS, LARRY IVAN16971
BELESIS, ANASTASIOS P2707354
BELONGE, CHRISTIPHER LYNN4223871
BELYAEV, VLADIMIR6056976
BENTIVEGNA, NICHOLAS P4636923
BERGER, GREGG MS2191694
BERTHOLET, JEAN-LOUIS4441892
BEYN, EDWARD5406273
BHAGWANI, NAVEEN K5423037
BHASIN, NIYUKT RAGHU2282048
BIRKELBACH, CARL MAX1177843
BOCK, THOMAS HERBERT806182
BOHACK, RICHARD EDWARD2239191
BORAKOWSKI, BRIAN MATT4093679
BORRUSO, THOMAS JOSEPH5475175
BOWEN, HEATH SHAYNE4824684
BRAHMBHATT, JINESH PRAVIN2491299
BROWN, ANDREW OWEN2865734
BROWN, DANARD WARTHEN3184347
BROWN, LINFORD ANTONIO JR2456328
BROWN, RICHARD LYNDON3245291
BUCK, THOMAS JOSEPH1024868
BULLEN, DWAYNE JUDE6394076
BURNS, SHAWN EVAN3138114
BYL, MICHAEL JAMES1204677
CALANDRINO, CHRISTOPHER JOHN5238231
CANNATA, DAVID CHARLES2408845
CARLSON, JOEL WILLIAM2844760
CARLSON, JOHN RICHARD3098410
CARR, BRIAN P2577346
CARRINO, JOSEPH MICHAEL JR2563438
CARRIS, GEORGE WILLIAM MR.3079577
CASOLO, MARK CARMEN1158074
CASSONE, VICTOR ROSARIO2312167
CERVINO, CHRISTOPHER MICHAEL2778817
CHAPMAN, WILLIAM DEAN JR2465420
CHELLIAH, MAURICE JOSEPH4385058
CLARK, JERRY EATON JR4575973
CLEMENTS, MICHAEL TODD1702071
CLYBURN, MCKYLE2829182
CODY, JILL M4333419
CODY, RICHARD GRANT2794558
COHEN, ROY1633948
COHEN, SEYMOUR2007478
COLEMAN, RICHARD JAMES2720422
COLLAKU, SAIMIR5969154
CORONADO, JAIME XAVIER4001702
COSTANZO, ANTONIO2580765
CRAWFORD, JAMES FILLMORE1327638
CRAWFORD, SHAWN PATRICK2759034
CRUCIANI, JASON M4014764
CUNNINGHAM, CHRISTOPHER MATTHEW2390800
DALY, RADCLIFFE ROBERT4663605
DAVIS, CHARLES BARNETT JR61845
DECKER, BRIAN KEITH4565524
DENISOV, ALEKSANDR YURIEVICH4586928
DESIDERIO, BARBARA LUCILLE2080713
DEVINEY, BRENT KEITH2131402
DIAZ, ANTHONY4131948
DIGIOIA, MICHAEL JOSEPH4073951
DIGREGORIO, MATTHEW2434158
DUVAL, CHRISTOPHER DEAN2805500
DYSON, HUGH MONROE JR827628
ECKSTEIN, MATTHEW EVAN2997245
ELMAZI, NIAZ2992689
ENGLER, JONAH4216259
EVANS, MARY CATHERINE1091961
FATTA, PHILIP OREZIO1467533
FAUBEL, ROGER1233851
FAWCETT JR, LAWRENCE JOHN5851474
FISHER, ANTHONY JOHN2428633
FLEMMING, GREGORY JR2882842
FLYNN, JAMES TRAVIS3082615
FOUST JR, KARL RONALD1010291
FOX, YOSEF YEHUDA2386001
FREEMAN, MICHAEL EDGAR2311151
FRIEDMAN, WILLIAM SIDENY2475502
GARRATT, GEOFFREY5170365
GAUL, JAMES CARL218833
GENDLEK, FRANCIS JOSEPH1054226
GENITRINI, CHRISTIAN3277581
GENNITY, WILLIAM CHRISTIAN4913490
GIOKAS, MICHAEL1398674
GIULIANO III, ANTHONY FRANK5459072
GOLD, LEE ALEXANDER1923251
GOLDSTEIN, GREGORY EVAN2412387
GOLIGHTLY, WILLARD LEE4395250
GORDAN, TREVOR LEE2195122
GOSLIN, CHRISTOPHER LEE1720162
GREEN, ALLEN MICHAEL824126
GREER, JOHN MICHAEL SR1969389
GREGG, DAVID JOSEPH1500899
GRIVAS, STEPHEN1829703
GUARINO, BRUCE JUDE1096719
GUILFOYLE, MICHAEL NICHOLAS5119593
GUYETTE, JOHN BRADY1711681
GUZMAN, CARLOS5809502
HAGERMAN, BRIAN JOSEPH2115892
HAHN, KARL EDWARD2487638
HAMILTON, OLORI DENNIS2956727
HARMS, KEVIN CHARLES2204523
HEAFNER, JAMES HAL4837072
HEIMOWITZ, AARON LEONARD241866
HEN, AVIV MICHAEL2927545
HENRICH, TODD JOSEPH5931911
HOLEVE, MITCHELL I2579937
HOLT, MARK DAVID3150622
HUNTER, DONALD HORTON JR1849030
ISAACS, OSI TREVOR2724629
JAKUBIAK, ROBERT JOSEPH2297081
JAMES, GARLAND SEAN2308721
JAROENSABPHAYANONT, NARONGDEJ5393272
JOHNSON, JEFFREY MICHAEL5522469
JOHNSON, JOHN MICHAEL5214417
JONES, FORREST4880765
KALATOUDIS, CHRISTOS ANGELO4888800
KAPLOWITZ, MARK WILLIAM824379
KERRIGAN, ROBERT JOSEPH , SR268516
KHAN, MUHAMMAD AKRAM1400089
KIBRIK, ALEXANDER5557827
KIERNAN, BLAKE H.4477243
KINNEY, MICHAEL THOMAS4692626
KIRSHBAUM, LAWRENCE GARY270856
KLEIN, FLORENCE ROSENTHAL271361
KLOSKOWSKI, DANIEL JOSEPH5337590
KNUTTILA, STEVEN ROLAND3039112
KRAUSE, JEROME SCOTT1582647
KUNZ, KEVIN DEE1274540
LABARBERA, ANDRE VINCENT2072370
LANCI, SEAN FRANCIS4180997
LAVOLPE, MICHAEL SCOTT5054798
LEAHY, MICHAEL1899498
LEE, ROBERT EDWARD JR1824202
LEVY, DAVID MICHAEL2255938
LEX, WILLIAM FRANCIS308990
LIEBERMAN, JONOTHAN MICHAEL2237428
LINDEMANN, LEVI DAVID4163876
LINSINBIGLER, MICHAEL THOMAS4072020
LOCY, DAVID WILLIAM4682865
LODATI, ANTHONY F4877082
LOFARO, PATRICK WILLIAM2502145
LOPEZ, ELVIN J3274134
LUCANDER, HENRY1017582
LUSTIG, JAY HOWARD849320
LYNCH, MICHAEL VAN3167788
LYON, JEFFREY G5385043
MALLETT, MARY HELEN CAPRICE1345520
MANDELL, ROSS H1219720
MARKS, ROBERT M , JR4198251
MARVIN, RONALD722277
MASTROIANNI JR, ANTHONY2151249
MCCUTCHEN, JERRY DEWAYNE1076678
MCDEVITT, THOMAS ANTHONY2067268
MCELHENNY, SCOTT DAVID2623701
MCKOY, STEPHEN DIRK4892097
MCLEAN, DEVON COULIN4072332
MCNAMEE, CHRISTOPHER RUSSELL4271195
MCNEIL, KEVIN M4166684
MENENDEZ, NATHALO IAN4882003
MIGNONE, DANIEL RICHARD3255740
MILAKOVICH, CURTIS DEAN5471527
MILES, KENNETH CHARLES812979
MILLS, MARK STEVEN1979733
MISSERI, BERNARDO2713297
MITCHELL, JAMES MARVIN3110555
MOORE, CHARLES J4525896
MORSI, ADAM OMAR5891841
MOSCHETTA, RONALD1100365
MURPHY, EDWARD THOMAS3041818
NASH, ROBERT G.718820
NEVIN, KEVIN MARK2460059
NEWMAN, GUY JAMES1456444
NOE, DAVID HAROLD1629962
NUNEZ, JEFFREY GEORGE1580759
OAKES, THOMAS CAMERON1354152
OROMANER, MICHAEL LAWRENCE2857559
OSAULENKO, ALEKSANDR5992623
OSBORN, GREGORY JEROME PTASIENSKI1716402
PAGARTANIS, STEVEN1958879
PARKER, JAMES RONALD356630
PARKER, JASON CHARLES5325129
PELLEGRINO, MICHAEL AUGUST5900843
PENNA, ARTHUR JAMES851814
PEREZ, HECTOR5431109
PETERSON, MELVIN LEE859600
PETERSON, PETER MARTIN2825535
PETTY, MARKEL DASHIELL5217356
PIONK, SCOTT DOUGLAS2056512
PITTMAN, BARRY5492220
PIWOWARCZYK, JON EDWARD723254
PIZELO, PHILIP ANTHONY2429418
PLUMMER, MARK ALLAN4608699
PORGES, BRENT MORGAN4002626
PORTER, AARON VIRGIL4354488
POSILLICO, PAUL ANTHONY4194630
QUINZI, JOSEPH DOMINICK5590651
RACHELE, GREGORY W.3046883
RACHLIN, JEFFREY823547
RAPUANO, JAMES MICHAEL JR4900969
RAY, AARON C4613258
RAY, KRITTIBAS3039388
RICCARDI JR, JOHN F4771185
ROBERTS, JAMES MICHAEL871777
RODRIGUEZ, CASEY THOMAS4870499
RODRIGUEZ, CESAR OMAR4451732
ROMER, ERNEST JULIUS2311741
ROSALIA, MICHAEL RICHARD2323953
ROTA, DOMINIC PAUL4886731
ROVECCIO, ROCCO2713144
SALINO, ANTHONY JOHN2162704
SALJOOKI, YOUSUF5045123
SANTARIELLO, JOHN JOSEPH5746158
SAVAGE, GARRY NELSON , JR2338013
SAVAGE, GARRY NELSON, SR1195330
SCALI, JOSEPH GIUSEPPE JR2564129
SCHMERMAN, RICHARD MARK1302988
SCHMIDT, GEORGE ANTHONY1082936
SCHOTTENSTEIN, EVAN A.4929175
SCHULICK, BRETT STEPHEN2243075
SCHULTZ, LYNN GORDON1052349
SHEA, DANIEL DENNIS1185950
SIMONE, BRIAN5357610
SIMONE, STEVEN JOHN2413602
SINGH, NARINDER KAUR3100308
SMALBACH, NEAL SETH1459854
SMITH, GLEN EDWARD JR1023145
SMITH, JOHN VICTOR5764683
SPOONER, GARY LEE2394218
STEVENS, CAREY CHARLES2344274
STOYECK, RICHARD CHRISTOPHER842122
THEIS, DAVID ALAN1422471
THORNES, JOHN THOMAS2097878
THORNOCK, RUSSELL DAVID446386
THURNHERR, JOSEPH MORRIS5045624
TILLGER, JOHN JOSEPH JR1766765
TOLES, LABRON MANOSA2676024
TOLMACS, CHRISTOPHER THOMAS4648724
TORRES, LAURENCE MICHAEL2821373
TOWNE, ALYN LEE III2552744
TOWNES, GREGORY ALAN2601302
TURBEVILLE, ANTONY LEE1721014
VACCARRO, CHARLES2796589
VALDINI, JOSEPH FRANCIS5517610
VALENZUELA, FANCISCO JAVIER2786970
VAN ZANDT, ROBERT HENRY453496
VANDYKE, VICTORIA ANNE1359504
VEITCH, DOUGLAS STUART SR1744372
VIETOR, DANA BRUCE873129
VYAS, BHASKAR CHANDRAKANT2253146
WADSWORTH, JACKIE DIVONO2342163
WALKER, EVERETT SCOVILLE JR1799546
WALLACE, WESLEY S5822512
WEISNER, MORRIS CLINTON1293948
WERBEL, LARRY STEVEN828351
WHITE, HAROLD CARSE465047
WILBANKS, AARON BRONELLE1983697
WILFREDO, FELIX2693672
WILLIAMS, DAVID ALLEN4350295
WOLLE, JOHN FREDRICK5479607
WOOD, STEPHEN DOUGLAS1308917
WORDEN, JAMIE JOHN4637404
WRIGHT, LOUIS ALBERT4053503
ZWETCHKENBAUM, GARY MARK2224378

TABLE 2 - ASSOCIATED PERSONS ASSERTING BANKRUPTCY AS A DEFENSE TO NON-PAYMENT OF A CUSTOMER ARBITRATION AWARD (2012 - 2022)

Party NameCRD
ACKERMAN, JAMES CURTIS1641924
BELESIS, GEORGE4860444
BESMAN, PASCAL MICHEL1109095
BRONSTEIN, CARL SAMUEL1777847
CARDINALE, CHANDRA ANN2512589
CASTELLANO, JOSEPH LOUIS1158479
CHEN RODRIGUEZ, OTILIA DEL CARMEN5041049
DIEHL, DAVID PAUL2604969
DINA, PHILIP A.1368917
FLEMING, DAVID WILSON1021968
FRANZKE, CRAIG CHARLES1809526
FRIEDMAN, HARRY2548017
FUSCO, ANTHONY2704753
FUSCO, FRANK PHILIP1233242
GARVIN, DANIEL RICHARD1481768
GAUTNEY, TIMOTHY MICHAEL2552149
GOLAN, RAFAEL1074079
HORNE, BRIAN YOUNG1830136
JONES, CLYDE MICK838391
KAPSE, ARUN RAGHUVEER5580069
LEVINE, SCOTT JORDAN4401053
MACRONE, JOHN JOSEPH2779961
MCCOY, DAVE MYRON1386650
MELITO, SHANE JOSEPH3044387
MILLEGAN, JAMES WOODWORTH1200051
MILLER, DAVID KEITH728491
MILLER, JONATHAN J5772258
MILLER, KELLY STOLTE1336841
MONTANO, ALEXANDER GENE1961932
PERRY, JOAN ANNE502847
PREIS, ILAN NATHAN4905635
ROWE, NICHOLAS BERNARD2109143
SCHROEDER, SCOTT DONOVAN2277248
SWAYNE, WILLIAM MADISON II440968
SWAYNE, WILLIAM MADISON III4616158
TADDONIO, CRAIG SCOTT4773787
TEUTONICO, PATRICK NICHOLAS2875434
TKATCHENKO, ANDREY V2712245
TORRES, ISRAEL WILFREDO3198065
TOWT, RICHARD WARREN448621
TUROCI, CHRISTOPHER JAMES3058991
WARES, AHMAD2959624
WEBER, JUERGEN2617323
WESTENBARGER, JAIME MICHAEL4625703
WILLIAMS, JASON K4676003
WOMACK, CLAY HARRISS4095147
WOODARD, NEAL MILLER5461015

TABLE 3 - INACTIVE FIRMS WITH UNPAID CUSTOMER ARBITRATION AWARDS8 (2012 – 2022)

Party NameCRD
ACHILLES SECURITIES, LLC133542
ALETHEIA SECURITIES, INC.,44784
ALLIED BEACON PARTNERS, INC.46227
ALTERNATIVE WEALTH STRATEGIES, INC.130933
AMERICAN BEACON PARTNERS, INC.15791
AMERICAN CLASSIC FINANCIAL COMPANY24099
ANDERSON & STRUDWICK, INCORPORATED48
AURA FINANCIAL SERVICES, INC.42822
AVENIR FINANCIAL GROUP, INC.148490
BIRKELBACH INVESTMENT SECURITIES, INC.11490
BLACKBOOK CAPITAL, LLC123234
BLUECHIP SECURITIES, INC.45726
BOOGIE INVESTMENT GROUP, INC.142200
BRAVER STERN SECURITIES LLC29108
BROOKSTONE SECURITIES, INC.13366
BROOKVILLE CAPITAL PARTNERS LLC.102380
C.K. COOPER & COMPANY, INC.106578
CALDWELL INTERNATIONAL SECURITIES104323
CAPITAL FINANCIAL SERVICES, INC.8408
CAPITAL GROWTH FINANCIAL, LLC41040
CAPITAL GROWTH RESOURCES7779
CAPSTONE PARTNERS, L.C.35784
CAPWEST SECURITIES, INC.30002
CAROLINA CAPITAL MARKETS, INC.38156
CHARLES MORGAN SECURITIES, INC.138887
CHARLES VISTA LLC132650
CM SECURITIES, LLC127136
CMG INSTITUTIONAL TRADING LLC47264
COMMUNITY BANKERS SECURITIES, LLC42794
COMPUTERSHARE SECURITIES CORPORATION107023
CRAIG SCOTT CAPITAL, LLC155924
CRYSTAL BAY SECURITIES, INC.142339
CULLUM & BURKS SECURITIES, INC.46600
DELPHI SECURITIES CORPORATION156529
DEWAAY FINANCIAL NETWORK, LLC30767
DIRECT CAPITAL SECURITIES, INC.29639
EDI FINANCIAL, INC.15699
EKN FINANCIAL SERVICES INC.113525
EMMETT A LARKIN COMPANY, INC.6625
EPLANNING SECURITIES, INC.46000
FINANCIAL ADVISERS OF AMERICA, LLC142170
FIRST MIDWEST SECURITIES, INC.21786
FOREST SECURITIES, INC.16255
FREEDOM INVESTORS CORP.23714
FULCRUM SECURITIES, LLC140084
G.F. INVESTMENT SERVICES, LLC132939
GILFORD SECURITIES INCORPORATED8076
GOLDEN BENEFICIAL SECURITIES CORPORATION48029
GRACE FINANCIAL GROUP LLC104133
GREAT NORTHERN FINANCIAL SECURITIES, INC.113054
HALCYON CABOT PARTNERS, LTD.32664
HARRISON DOUGLAS, INC.16515
HFP CAPITAL MARKETS LLC44351
IMS SECURITIES, INC.35567
INVESTMENT MANAGEMENT CORPORATION37196
JOHN CARRIS INVESTMENTS LLC145767
JOHN THOMAS FINANCIAL40982
LAWSON FINANCIAL CORPORATION15261
LEGEND SECURITIES, INC.44952
LIGHTHOUSE CAPITAL CORPORATION41812
MARQUIS FINANCIAL SERVICES OF INDIANA INC.20733
MCL FINANCIAL GROUP, INC.41180
MEADOWBROOK SECURITIES LLC10578
MERCER CAPITAL LTD.104012
MERRIMAC CORPORATE SECURITIES, INC.35463
MEYERS ASSOCIATES, L.P.34171
MORGAN PEABODY, INC.38306
NDX TRADING, INC.39940
NEWPORT COAST SECURITIES, INC.16944
NSM SECURITIES, INC.134357
OBSIDIAN FINANCIAL GROUP, LLC104255
PACIFIC AMERICAN SECURITIES, LLC42999
PACIFIC WEST SECURITIES, INC.6390
PERRIN, HOLDEN AND DAVENPORT CAPITAL CORP.38785
POINTE ATLANTIC, INC46599
PORTFOLIO ADVISORS ALLIANCE, LLC101680
PRESTIGE FINANCIAL CENTER, INC.30407
PRIMESOLUTIONS SECURITIES, INC.46017
PRIMEX29394
R.W. TOWT & ASSOCIATES128837
RESOURCE HORIZONS GROUP LLC104368
RETIREMENT CAPITAL GROUP SECURITIES, INC.126716
RETIREMENT SECURITIES, INC.43740
REUVEN ENTERPRISES SECURITIES DIVISION, LLC140910
ROCKWELL GLOBAL CAPITAL LLC142485
ROYAL SECURITIES COMPANY10702
SANDLAPPER SECURITIES137906
SAN FRANCISCO SECURITIES, INC.43629
SECURITIES NETWORK LLC133785
SOURCE CAPITAL GROUP, INC.36719
SOUTHRIDGE INVESTMENT GROUP LLC45531
STEELPOINT SECURITIES, LLC155847
STERLING ENTERPRISES GROUP, INC.44915
SUCCESS TRADE SECURITIES, INC.46027
TAKE CHARGE FINANCIAL, INC.16724
TAYLOR CAPITAL MANAGEMENT INC.43559
TEXAS E&P PARTNERS, INC.127228
THORNES & ASSOCIATES, INC. INVESTMENT SECURITIES40868
TITUS ROCKEFELLER, LLC43608
TRADERIGHT CORP.45598
UINTA INVESTMENTS, INC.39954
UNITED SECURITIES ALLIANCE, INC.36487
VANGUARD CAPITAL22081
WALL STREET STRATEGIES, INC.31268
WESTROCK ADVISORS, INC.114338
WFP SECURITIES CORPORATION35098
WHITE PACIFIC SECURITIES, INC.42505
WILBANKS SECURITIES, INC.40673
WOODSTOCK FINANCIAL GROUP, INC.38095
WORDEN CAPITAL MANAGEMENT, LLC148366
WORKMAN SECURITIES CORPORATION31898
WYNSTON HILL CAPITAL, LLC103811

TABLE 4 - FIRMS ASSERTING BANKRUPTCY AS A DEFENSE TO NON-PAYMENT OF A CUSTOMER ARBITRATION AWARD (2012 – 2022)

Party NameCRD
BENJAMIN & JEROLD BROKERAGE, LLC29110
CAMBRIDGE LEGACY SECURITIES L.L.C.103722
FINTEGRA, LLC16741
J.W. MILLEGAN, INC.40116
SLOAN SECURITIES CORP.17930
THINKEQUITY LLC44274

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 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 FINRA 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.