Directed verdict on behalf of a broker-dealer and a broker in a FINRA arbitration in New York

The claimant, a sophisticated and wealthy owner of a broker-dealer, alleged that he was being charged an unreasonable mark-up on municipal bond sales. The claimant also alleged that he was the victim of elder abuse. In granting the motion to dismiss presented at the close of the claimant’s case-in-chief, the arbitration panel found that the claimant failed to present a basis for his claim. The panel recommended expungement of all references to the arbitration from the broker’s records maintained by FINRA on the grounds that the claim, allegation or information was factually impossible or clearly erroneous. The arbitration panel took the extra step of finding that the mark-ups on the municipal bonds sold to the claimant were not unfair, not unreasonable and not inconsistent with industry regulations.

_{Case Law Alerts, 3rd Quarter, July 2015}

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