Lawyer Brian McDonough won over 500 dollars for an investor in negotiation versus brokerage firm Sands Brothers & Co. His contestant told him that his client might not get the whole amount.
McDonough declined the compensation suggestion. His customer went on to collect the full $664,217 he had conquered in arbitration. The process consumed many months as Sands Brothers & Co. contested the prize in a court.
The request for resignation as a broker-dealer must be passed by the Exchange and Securities Commission. It has discouraged investors with arbitration trials continuing against Sands Brothers & Co. The NASD and NYSE are unable to handle their greatest punishment means – suspension – versus firms that aren’t members.
It’s not uncommon for brokerage companies to be directed to multiple arbitration claims and awards. The troubles confronting Sands Brothers & Co. are different; no any broker named repeatedly. The trials have reasonably common cases cited- extending from unauthorized negligence to trading.
Matthew Eitner and James Ahern and are the Laidlaw principles. They fear that executives will move assets to another broker-dealer to avoid paying the awards.Laidlaw & Co. changed its identity from Sands Brothers International Ltd. It’s authorized to trade in 48 nations and has a perfect regulatory record. The firm is working as a brokerage; even as Laidlaw and Company is finishing its brokerage services.
The NASD enacted another rule in 2003. The rule needs brokerage companies to seek support when transferring 25% or more of one organization’s assets to another. Lawyers representing investors with excellent prizes against Sands Brothers & Co. say they consider neither the NYSE nor the NASD can compel a retired broker-dealer to meet an award.
William Federman is an Oklahoma City lawyer. He won the $261,000 case prize in April versus Sands Brothers & Co. for a doctor. He said the brokerage organization has also pleased his title. The brokerage firm continues filing movements that hold the judgment.
The cases confirm that the NYSE doesn’t have the authority to enforce judgment awards against nonmembers.