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.
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