Michael J. Betts LLC Clients Prevail in FINRA Industry Arbitration

On April 4, 2024, a FINRA arbitration panel in the case of Pirchesky, et al. v. Boustead Securities, LLC, et al., FINRA No. 22-01717, awarded damages of more than $200,000, including $125,000 of punitive damages, to clients of Michael J. Betts LLC, who were the claimants in the case. The Panel found in our clients’ favor on claims for fraud, breach of contract and defamation. In addition, the Panel ordered expungement of certain information that the firm had included on a Form U5 that it had filed concerning its termination of Mr. Pirchesky, a former registered representative of the firm. The Panel expressly found that information to be defamatory. Finally, the Panel awarded sanctions against Respondents under FINRA Rule 13504(a)(10), arising from a frivolous motion to dismiss that had been filed earlier in the case by Respondents. Rule 13504 governs the filing of motions to dismiss in industry arbitrations and subparagraph (a)(10) provides: “If the panel deems frivolous a motion filed under this rule, the panel must also award reasonable costs and attorneys’ fees to any party that opposed the motion.” The Panel’s Award may be found here.