Award FINRA Dispute Resolution

Transcription

1 Award FINRA Dispute Resolution In the Matter of the Arbitration Between: Claimant Irving J. Nast Case Number: vs. Respondents Equities Trading Corporation Global Arena Capital Corp. Brian Joseph Hagerman Joseph Gunnar & Co., LLC John Scott Matthews Hearing Site: Los Angeles, California Nature of the Dispute: Customer vs. Members and Associated Persons This case was decided by an all-public panel. REPRESENTATION OF PARTIES For Claimant Irving J. Nast ("Claimant"): Marc I. Zussman, Esq., Law Offices of Marc I. Zussman, Los Angeles, California. For Respondent Joseph Gunnar & Co., LLC ("Joseph Gunnar"): John E. Lawlor, Esq., The Law Offices of John E. Lawlor, Esq., Mineola, New York. For Respondents Equities Trading Corporation ("Equities Trading"), Global Arena Capital Corp. ("Global Arena"), Brian Joseph Hagerman ("Hagerman"), and John Scott Matthews ("Matthews"): Ronald S. Herzog, Esq., LeClairRyan, New York, New York. Hereinafter, Respondents Joseph Gunnar, Equities Trading, Global Arena, Hagerman, and Matthews are collectively referred to as "Respondents." CASE INFORMATION Statement of Claim filed on or about: January 3, Claimant signed the Submission Agreement: December 27, Statement of Answer filed by Respondent Joseph Gunnar on or about: March 5, Statement of Answer filed by Respondents Equities Trading, Global Arena, Hagerman, and Matthews on or about: March 5, 2014.

2 Award Page 2 of 6 Joseph Gunnar signed the Submission Agreement: February 28, Equities Trading signed the Submission Agreement: March 21, Global Arena signed the Submission Agreement: March 21, Hagerman signed the Submission Agreement: March 21, Matthews signed the Submission Agreement: March 21, CASE SUMMARY Claimant asserted the following causes of action: fraud, negligent misrepresentation, breach of fiduciary duty, breach of covenant of good faith and fair dealing, elder abuse, violation of unfair business practices, and violation of federal/state securities laws and FINRA conduct rules. The causes of action relate to Claimant's investments in allegedly unsuitable, high risk equities and private placement offerings, including but not limited to. Access Integrated Technologies, Dryships, Advance Blast, and Global Arena Holding Corp. Unless specifically admitted in its Answer, Respondent Joseph Gunnar denied the allegations made in the Statement of Claim and asserted various affirmative defenses. Unless specifically admitted in their Answer, Respondents Equities Trading, Global Arena, Hagerman, and Matthews denied the allegations made in the Statement of Claim and asserted various affirmative defenses. RELIEF REQUESTED In the Statement of Claim, Claimant requested: 1. Rescission and restitution, or in the alternative, compensatory damages in the amount of at least $452,000.00; 2. Treble damages, attorneys' fees, and costs for elder abuse, pursuant to California Civil Code Section 3345 and California Welfare and Institutions Code Section ; 3. Lost opportunity costs, the amount to be established at the arbitration hearing, which will show how a well-managed portfolio for Claimant would have performed; 4. Disgorgement of profits Respondents generated from Claimant's accounts, in an amount according to proof, but not less than the total commissions and fees; 5. Pre-judgment and post-judgment interest at the applicable legal rate; 6. Attorneys' fees, expert fees, and costs; 7. Punitive damages in an amount according to proof; and 8. Other and further relief the Panel deems just and proper. Respondent Joseph Gunnar requested that the Statement of Claim be dismissed in its entirety because Claimant has failed to state any claim against Respondent Joseph Gunnar upon which relief can be granted and because Claimant has failed to allege any actionable damages that are proximately, or causally, related to Respondent Joseph

3 Award Page 3 of 6 Gunnar. Respondents Equities Trading, Global Arena, Hagerman, and Matthews requested that, after the hearing on the merits, this matter be dismissed with prejudice with all costs and fees charged to the Claimant, and any other relief the Panel deems just and proper. At the close of the hearing. Claimant requested interest in the amount of $117, as part of an alternative damage claim, treble damages against Joseph Gunnar in the amount of $300,807.00, treble damages against Respondents Equities Trading, Global Arena, Hagerman, and Matthews in the amount of $1,078,041.00, and attorneys' fees in the amount of $208, OTHER ISSUES CONSIDERED AND DECIDED The Arbitrators acknowledge that they have each read the pleadings and other materials filed by the parties. After the conclusion of Claimant's case-in-chief. Respondents Equities Trading, Global Arena, Hagerman, and Matthews moved to dismiss the claims asserted against them. Claimant opposed the request. The Panel denied the motion to dismiss finding Respondents Equities Trading, Global Arena, Hagerman, and Matthews failed to present reasons why the case should be dismissed. The parties have agreed that the Award in this matter may be executed in counterpart copies or that a handwritten, signed Award may be entered. AWARD After considering the pleadings, the testimony and evidence presented at the hearing, the Panel has decided in full and final resolution of the issues submitted for determination as follows: 1. Claimant's claims are denied in their entirety. 2. Any and all relief not specifically addressed herein, including punitive and treble damages, is denied. FEES Pursuant to the Code, the following fees are assessed: Filing Fees FINRA Dispute Resolution assessed a filing fee* for each claim: Initial Claim Filing Fee =$ 1, *The filing fee is made up of a non-refundable and a refundable portion.

4 Award Page 4 of 6 Member Fees Member fees are assessed to each member firm that is a party in these proceedings or to the member firm(s) that employed the associated person(s) at the time of the event(s) giving rise to the dispute. Accordingly, as parties. Global Arena Capital Corp. and Joseph Gunnar & Co., LLC are assessed the following: Global Arena Capital Corp. Member Surcharge =$ 2, Pre-Hearing Processing Fee =$ Hearing Processing Fee =$ 5, Joseph Gunnar & Co., LLC Member Surcharge =$ 2, Pre-Hearing Processing Fee =$ Hearing Processing Fee =$ 5, Adiournment Fees Adjournments granted during these proceedings for which fees were assessed: January 5-9, 2015, adjournment by parties = waived June 1-5, 2015, adjournment by parties = $1, The Panel has assessed $1, of the adjournment fees jointly and severally to Respondents. Three-Day Cancellation Fees Fees apply when a hearing on the merits is postponed or settled within three business days before the start of a scheduled hearing session: June 1-5, 2015, adjournment by parties = $ The Panel has assessed $ of the three-day cancellation fees jointly and severally to Respondents. Discovery-Related Motion Fees Fees apply for each decision rendered on a discovery-related motion. One (1) Decision on a discovery-related motion on the papers with one $ = $ Claimant submitted one discovery-related motion One (1) Decision on a discovery-related motion on the papers with three $ = $ Respondents Equities Trading, Global Arena, Hagerman, and Matthews submitted one discovery-related motion Total Discovery-Related Motion Fees = $ The Panel has assessed $ of the discovery-related motion fees jointly and severally to Respondents.

5 Award Page 5 of 6 Contested Motion for Issuance of a Subpoena Fees Fees apply for each decision on a contested motion for the issuance of a subpoena. One (1) Decision on a contested motion for the issuance of a subpoena with one $ = $ Total Contested Motion for Issuance of Subpoenas Fees = $ The Panel has assessed $ of the contested motion for issuance of subpoenas fees jointly and severally to Respondents. Hearing Session Fees and Assessments The Panel has assessed hearing session fees for each session conducted. A session is any meeting between the parties and the arbitrator(s), including a pre-hearing conference with the arbitrator(s), that lasts four (4) hours or less. Fees associated with these proceedings are: Four (4) Pre-hearing sessions with the $1,200.00/session =$4, Pre-hearing conferences: June 30, session August 6, session January 8, session May 18, session Twenty (20) Hearing $1,200.00/session =$24, Hearing Dates: August 31, sessions September 1, sessions September 2, sessions September 3, sessions September 4, sessions October 19, sessions October 20, sessions October 21, sessions October 30, sessions Total Hearing Session Fees =$28, The Panel has assessed $24, of the hearing session fees to Claimant. 2. The Panel has assessed $4, of the hearing session fees jointly and severally to Respondents. All balances are payable to FINRA Dispute Resolution and are due upon receipt.

6 Award Page 6 of 6 ARBITRATION PANEL Edward J. Costello, Jr. -, Presiding Chairperson - Yvonne Brathwaite Burke - I, the undersigned Arbitrator, do hereby affirm that I am the individual described herein and who executed this instrument which is my award. Concurring Arbitrators' Signatures Edward J. Costello, Jr., Presiding Chairperson Yvonne Brathwaite Burke Decembers Date of Service (For FINRA Dispute Resolution office use only)

7 ARBITRATION PANEL Edward J. Costello, Jr. Yvonne Brathwaite Burke, Presiding Chairperson I, the undersigned Arbitrator, do hereby affirm that I am the individual described herein and who executed this instrument which is my award. Concurring Arbitrators' Signatures Edward J. Costello, Jr., Presiding Chairperson / Yvonne Brathwaite Burke Decembers Date of Service (For FINRA Dispute Resolution office use only)

8 Award Paae 6 of 6 ARBITRATION PANEL Edward J. Costello, Jr. Yvonne Brathwaite Burke, Presiding Chairperson I, the undersigned Arbitrator, do hereby affirm that I am the individual described herein and who executed this instrument which is my award. Concurring Arbitrators' Signatures Edward J, Costello, Jr., Presiding Chairperson 1/ c Yv^ne Brathwaite Burke (blic Arbitrator Decembers, 2015 Date of Service (For FINRA Dispute Resolution office use only)