CMF Wins Full Dismissal of FINRA Customer Case Against Broker and Broker-Dealer and Broker Wins Expungement from CRD

Press Release – New York, NY – July 8, 2020 – Securities and corporate law firm Carmel, Milazzo & Feil LLP announced today that it obtained a FINRA arbitration award (Case No. 19-02754) dismissing all claims asserted by a former customer against brokerage firm First Standard Financial Company (“FSF”) and broker Michael Christopher Blumer. The award also recommended expungement of any and all references to the arbitration claim from Mr. Blumer’s CRD records as maintained by FINRA.  

The customer asserted claims for unsuitability, unauthorized trading, breach of fiduciary duty, breach of the duty of good faith and fair dealing, breach of contract; misrepresentation and omission; fraud; negligence; and failure to supervise, all of which were aggressively defended .  

After a full presentation of evidence by CMF attorneys at the hearing of this matter, the arbitrator found that “Claimant misrepresented the length of his relationship with Blumer; his significant level of experience as a sophisticated investor; and his unequivocal, repeated interest and decisions to invest in speculative, maximum growth investments as well as trading in options, which were consistent with his chosen tolerance for high risk. The Arbitrator also found that Claimant’s claim and allegations were not supported with any credible evidence, thus Claimant filed a false claim.”

CMF is pleased with this result for its clients and maintain that this award is an affirmation that all customer arbitrations should be carefully vetted and that a broker and brokerage firm have avenues and recourse available to defend themselves and seek exoneration .  CMF attorneys are available to discuss how we can assist in the defense of your next customer or industry case.  We can be contacted at contact@cmfllp.com or (212) 658-0458.

About Carmel, Milazzo & Feil LLP
Carmel, Milazzo & Feil LLP is a nationally recognized securities and corporate law firm that provides experienced representation in all matters involving the securities industry. Our attorneys specialize in advising clients on private placements, initial (IPOs) and secondary public offerings, alternative public offerings, preparation of SEC filings and listings on the NYSE, NASDAQ and OTC Markets. In addition, our litigation and arbitration attorneys are highly skilled in representing clients from routine lawsuits to complex cases before the SEC, FINRA, and other tribunals, as well as State and Federal Courts.

The information on this site is for general informational purposes only.  The information presented in this site is not legal advice or a legal opinion, and it may not necessarily reflect the most current legal developments.  You should seek the advice of legal counsel of your choice before acting upon any of the information in this site. These materials may be considered advertising for legal services under the laws and rules of professional conduct of the jurisdictions in which we practice.  Under New York’s Code of Professional Responsibility, portions of this website constitute attorney advertising. This website is a communication providing public information about our firm’s availability for professional employment.

CMF Wins FINRA Expungement of Customer Complaint for Registered Representative

Press Release – New York, NY – June 24, 2020 – Securities and corporate law firm Carmel, Milazzo & Feil LLP announced today that it obtained a FINRA arbitration award (Case No. 19-00448) recommending expungement relief to a broker client of any and all references to a customer arbitration and despite the climate of denial of such applications and issues marshalling evidence relative to a now defunct broker dealer.  

The broker maintained that he was named to the underlying arbitration in error and CMF attorneys provided ample evidentiary support for that position.  As a result of all such proofs submitted, the arbitrator made an affirmative finding that the underlying arbitration claim was “factually impossible or clearly erroneous and the client was not involved in the alleged investment-related sales practice violation.” 

CMF is pleased with the result for our deserving client and maintain that this finding is an affirmation that a broker’s CRD need not be forever marred with an unfounded complaint or arbitration that appears on his or her license.  CMF attorneys are available to discuss how we can assist with your next expungement issue.  We can be contacted at contact@cmfllp.com or (212) 658-0458.

About Carmel, Milazzo & Feil LLP
Carmel, Milazzo & Feil LLP is a nationally recognized securities and corporate law firm that provides experienced representation in all matters involving the securities industry. Our attorneys specialize in advising clients on private placements, initial (IPOs) and secondary public offerings, alternative public offerings, preparation of SEC filings and listings on the NYSE, NASDAQ and OTC Markets. In addition, our litigation and arbitration attorneys are highly skilled in representing clients from routine lawsuits to complex cases before the SEC, FINRA, and other tribunals, as well as State and Federal Courts.

The information on this site is for general informational purposes only.  The information presented in this site is not legal advice or a legal opinion, and it may not necessarily reflect the most current legal developments.  You should seek the advice of legal counsel of your choice before acting upon any of the information in this site. These materials may be considered advertising for legal services under the laws and rules of professional conduct of the jurisdictions in which we practice.  Under New York’s Code of Professional Responsibility, portions of this website constitute attorney advertising. This website is a communication providing public information about our firm’s availability for professional employment.

PARTNER ROSS DAVID CARMEL AGAIN NAMED “SUPER LAWYER RISING STAR” BY THOMSON REUTERS

Press Release – New York, NY – April 15, 2020 – Securities and Corporate law firm Carmel, Milazzo & Feil LLP (“CMF”) is proud to announce that for the fourth consecutive year, partner Ross David Carmel has been named a “Super Lawyer Rising Star” by Thomson Reuters a distinction reserved for only 2.5% of all attorneys in the New York Metro area.  The announcement will appear in the New York Times. 

Carmel, Milazzo & Feil Obtain Successful Appeal and Vacatur of FINRA Disciplinary Finding

Press Release – New York, NY – April 13, 2020 – Securities and corporate law firm Carmel, Milazzo & Feil LLP announced today that attorneys Timothy Feil, Esq., and Craig Riha, Esq., obtained an appellate decision from the National Adjudicatory Council (“NAC”), the Financial Industry Regulatory Authority (“FINRA”) committee that reviews FINRA disciplinary proceedings, for their client Southeast Investments, N.C., Inc. (“SEI”). The NAC vacated disciplinary findings made by the FINRA Office of Hearing Officers (“OHO”).

Mr. Feil and Mr. Riha did not represent SEI during the original OHO disciplinary proceeding.  The OHO found that SEI had willfully violated securities laws and FINRA Rules by failing to inspect certain of its branch offices and by failing to maintain various e-mail correspondence. As a result, SEI was levied with significant fines and a statutory disqualification pursuant to the finding of willfulness.  Based upon the NAC’s Decision, the finding of failure to inspect branch offices was vacated, and the finding of failure to maintain e-mails was significantly reduced. In addition, all OHO findings made against SEI of willfulness were vacated, resulting in a vacatur of the statutory disqualification against it. Finally, the NAC significantly reduced fines imposed against SEI by nearly $100,000 given the vacatur of the OHO findings as against SEI. 

Mr. Feil and Mr. Riha are pleased with the NAC result for SEI and maintain that this NAC Decision is affirmation that broker dealers should not accept their fate as determined by FINRA Department of Enforcement or OHO when the objective facts tell a different story, especially where such determinations can drastically affect the business operations and legacy of the firm and its representatives.

See Dept. of Enforcement v. Southeast Investments N.C., Inc., Complaint No. 2014039285401.

You can find the decision here: https://www.finra.org/sites/default/files/fda_documents/2014039285401%20Southeast%20Investments%20CRD%2043035%20Frank%20Harmon%20Black%20CRD%2022451%20NAC%20Decision%20jm%20%282019-1563542383902%29.pdf

About Carmel, Milazzo & Feil LLP
Carmel, Milazzo & Feil LLP is a nationally recognized securities and corporate law firm that provides experienced representation in all matters involving the securities industry. Our attorneys specialize in advising clients on private placements, initial (IPOs) and secondary public offerings, alternative public offerings, preparation of SEC filings and listings on the NYSE, NASDAQ and OTC Markets. In addition, our litigation and arbitration attorneys are highly skilled in representing clients from routine lawsuits to complex cases before the SEC, FINRA, and other tribunals, as well as State and Federal Courts.

The information on this site is for general informational purposes only.  The information presented in this site is not legal advice or a legal opinion, and it may not necessarily reflect the most current legal developments.  You should seek the advice of legal counsel of your choice before acting upon any of the information in this site. These materials may be considered advertising for legal services under the laws and rules of professional conduct of the jurisdictions in which we practice.  Under New York’s Code of Professional Responsibility, portions of this website constitute attorney advertising. This website is a communication providing public information about our firm’s availability for professional employment.