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.

Wage Theft – Employer’s Failure to Pay You Your Wages, Salary and/or Commissions

The law firm of Carmel, Milazzo & Feil LLP (“CMF”) is investigating employers who fail to pay wages, salary and/or commissions to employees, usually upon their resignation or termination.

Under New York law, when an employer fails to pay you your wages, salary and/or commissions, you have the right to recover the full amount of wages, salary, commissions, benefits, and wage supplements accrued during the six years prior to commencing an action, as well as reasonable attorney’s fees, plus an additional 100% of unpaid wages, salary or commissions as liquidated damages unless the employer establishes a good-faith defense.

In addition, owners, officers, and members of the employer/Company can be held personally liable for failing to pay an employee their wages, salary and/or commissions.  Not only will an employee be able to go after a Company’s members, but also their successive owners.  Indeed, an employer similar in operation and ownership to a prior employer which had been found in violation of the New York Labor Law, shall be deemed to be the “same employer if the employees of the new employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors, or if the subsequent employer has substantially the same production process, produces substantially the same products and has substantially the same body of customers.”  Such subsequent employer shall continue to be liable for the acts of the prior employer under New York law.  Further, New York law prevents employers from avoiding their liabilities by forming “alter ego” companies.

New York Labor Law applies only to an “employee” which is defined as “any person employed for hire by an employer in any employment.”  This definition excludes independent contractors; however, there is extensive case law on the subject of what actually constitutes an independent contractor or employer-employee relationship.  Thus, just because your employment agreement designates you as independent contractor, does not mean you are actually an independent contractor under the law. Indeed, the determination of independent contractor status is governed by a multitude of factors, including, the employer’s supervision, direction and control over the employee/independent contractor.

If you or someone you know did not receive their last paycheck, multiple paychecks, overtime wages, salary, commissions, or were not reimbursed for expenses, you may be entitled to recover your losses in New York court or through FINRA or AAA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmfllp.com for a free and confidential case evaluation.

FINRA Seeks to Require Registration of Persons Who Develop Algorithmic Trading Strategies

FINRA has filed a proposed rule with the Securities and Exchange Commission (“SEC”) that would require associated persons of FINRA member firms who are responsible for the design, development or significant modification of an algorithmic trading strategy to register with FINRA. The proposed rule would also require the registration of persons who are responsible for the supervision of the day-to-day activities of such algorithmic trading strategies.

The rule would require covered persons to pass a qualification examination and register with FINRA as a Securities Trader. By requiring same, FINRA seeks to facilitate compliance with securities regulation obligations by firms engaged in automated trading activities. Further, as registered Securities Traders, individuals registered under the proposed rule must be designated to a registered principal with the authority to carry out supervisory obligations of the firm.