Royal Alliance Awarded $1.17M From Former Broker

A securities arbitration panel has ordered a broker to pay his former employer, Royal Alliance Associates Inc., more than $1.17 million, plus interest, for the breach of his promissory note.

A Financial Industry Regulatory Authority, or Finra, arbitration panel found that the broker, Joseph Scarborough, is liable for breach of promissory note, according to the award dated October 26. No details of the terms of the promissory note were included.

According to Finra’s records, Scarborough was registered at Royal Alliance, a New York-based independent broker dealer, in Maryland from January 1996 to December 2008. He is now registered at the independent broker-dealer SII Investments Inc.

In response to the claim by Royal Alliance, Scarborough requested an award of $20,000 in his favor for commissions owed to him by his previous employer. The Finra panel awarded him the $20,000 but denied his request for attorney’s fees.

Royal Alliance originally requested compensatory damages of $2.15 million, plus punitive damages, expenses and fees. The brokerage has more than 2,100 financial advisors and more than $38 billion in client assets.

Calls to Scarborough’s attorney, Ramsay Whitworth at Gebhardt & Smith LLP, and Royal Alliance Associates were not immediately returned.

Source

This entry was posted on Monday, November 9th, 2009 at 10:50 pm and is filed under Securities Fraud. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.