A financial advisor who previously worked for the national brokerage firm filed a claim in arbitration on December 3, 2007, claiming that he was forced to resign because the firm would not allow him to continue to serve Chicago-based clients following his move to Colorado. He alleged eight causes of action. He sought damages for the firm’s alleged wrongful taking of his “book of business” and for defamation. The brokerage firm counterclaimed against the former financial advisor to secure the return of upfront fees for managed money accounts (incentive compensation) and to recover damages for the former financial advisor’s breach of non-solicitation obligations to the brokerage firm.

The advisor’s Statement of Claim sought $2 million in compensatory damages for lost wages and harm to his career, $1 million in defamation damages, attorneys’ fees, punitive damages, interest and forum fees. The brokerage firm’s counterclaim sought damages in excess of $100,000.

The three-day arbitration commenced in Chicago in February 2009. After the hearing, the arbitration panel rejected all of the advisor’s claims and awarded the brokerage firm damages on its counterclaims.