By Matias Montillano of Shustak Reynolds & Partners, P.C. posted on Friday, November 9, 2018.

Matias Montillano

Associate

On December 5th, a Financial Industry Regulatory Authority (FINRA) panel in New York city awarded a former Wells Fargo financial advisor, Christopher John Tisi, $750,000 in a claim against Wells Fargo Advisors, LLC for deferred compensation. See Tisi v. Wells Fargo Advisors, LLC, FINRA Office of Dispute Resolution Award, No. 14-00278 (Dec. 5, 2018). Tisi and the other claimant, another former Wells Fargo advisor and Tisi’s business partner, sought approximately $220,000 in deferred compensation plus unspecified money damages. The other claimant withdrew from the arbitration after reaching a confidential settlement with Wells Fargo. 

In their Statement of Claim, the two advisors asserted allegations of fraud based on material misrepresentations, omissions and lies, coercion, egregious regulatory violations, improper conversion of deferred compensation, defamation, seeking to destroy lucrative business, quantum meruit, and unjust enrichment.  The former Wells Fargo advisors sought compensatory and punitive damages for their deferred compensation, growth bonus, and ongoing revenue. They also requested damages for damage to their reputation. Wells Fargo denied all allegations and counterclaimed, arguing that the claimants breached their promissory note agreements with the firm. 

The FINRA panel did not provide an explanation for the award. However, after considering the pleadings, testimony, and evidence presented at the hearing, the panel found Wells Fargo liable to Tisi for $750,000 in compensatory damages.

Shustak Reynolds & Partners, P.C. focuses its practice on securities and financial services law and complex business disputes. We routinely represent broker-dealers and financial advisors in arbitrations, financial advisor transitions, broker protocol disputes and related matters. Please contact us today for a confidential, complimentary consultation.

Share This Article