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Stockbroker Seeks Damages After Customer Arbitration

Monday, November, 5, 2012


A Statement of Claim for arbitration purposes arranged by FINRA (Financial Industry Regulatory Authority) in April of 2012, as a cause of action that was asserted in regards to inaccurate customer recordings by Claimant Edward J. Brownstein. The recordings were documented through Brownstein's Central Registration Depository. The financial arbitration was made against TD Ameritrade. In response, TD Ameritrade did not object to an expungement that was requested by Brownstein.

Legal Arbitration Arranged As Derivative Action

Brownstein's arbitration was made against TD Ameritrade as a form of derivative action. FINRA's expungement protocol requires this move to be made. Brownstein is seeking the expungement of information in regards to a previously settled legal arbitration.

Online FINRA records indicated that as of October 25th, 2012, a description of the customer's allegation was stated as, “...Client alleges misrepresentation and material omission of fact regarding purchase of Main Street bonds...” by an arbitration attorney.

The customer had clearly insinuated that he had sought Brownstein's assurance of bond quality and risk as part of a premeditated trade; and that the parties involved had discussed the risk of the action, the security and income payment to go toward principal of what would be revealed as Main Street from Lehman Brothers.

Customer Arbitration Negated

FINRA's online records had indicated that the client in this case allegedly had $290,000 in damages in the arbitration's Statement of Claim that was filed in July of 2009. In October of 2010, TD Ameritrade settled the disagreement for $65,000 that did not include a contribution from Brownstein. The settlement of which Brownstein had not contributed caused Brownstein to become persistent in clearing his name of having anything to do with the ordeal.

Brownstein then decided to pursue expungement due to his becoming angry with how the results had ultimately tarnished his reputation as a stock broker. FINRA then required him to sue TD Ameritrade in the process of expunging the allegations that had arisen against him in the customer arbitration.