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4th U.S. Circuit Court of Appeals Affirms $1.1 Million FINRA Arbitration Award Against Wachovia

The 4th U.S. Circuit Court of Appeals issued a unanimous decision affirming an August 2010 judgment by South Carolina Judge Terry L. Wooten. Judge Wooten’s judgment confirmed an arbitration award issued by a Financial Industry Regulatory Authority (“FINRA”) arbitration panel ordering Wachovia Securities (“Wachovia”) to pay $1.1 million in attorneys’ fees to four former Wachovia brokers under the South Carolina Frivolous Civil Proceedings Act.

The FINRA Award resulted from a raiding claim brought by Wachovia against Stifel Nicolaus & Co. Inc. (“Stifel”) and four brokers who left Wachovia to join Stifel. The brokers located in South Carolina, Frank Brand, Marvin Slaughter, Stephen Jones and George Stukes, joined Stifel in January 2008. Wachovia has since been renamed Wells Fargo Advisors, LLC.

The FINRA award also ordered the parties to advise a federal judge in South Carolina that sworn declarations filed by Wachovia “may contain materially false representations of fact,” and that a videotape, purportedly showing the former brokers removing client documents from Wachovia, that was used as evidence by Wachovia to obtain a temporary restraining order from the court “does not support the allegations” made by the firm.

The Florida securities lawyers at McCabe Rabin, P.A. represent investors nationwide in FINRA arbitration matters. The Firm’s attorneys seek to assist investors who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms.

Investors nationwide who have incurred investment losses, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

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