Brokers

J.P. Morgan Loses Arbitration Seeking $3 Million From Former Brokers


Three former J.P. Morgan Chase financial advisors prevailed in arbitration over a claim brought by their former employer, which sought more than $3 million from the advisors for allegedly soliciting the firm’s clients.


J.P. Morgan Securities alleged in an arbitration claim made with the Financial Industry Regulatory Authority that Barry A. Krumwiede, Bryan L. Schneider and Christopher J. Bowman violated their employment agreements by reaching out to the firm’s clients to recruit them. All three advisors left the firm between 2019 and 2020 to work for LPL Securities as investment advisor representatives.


In its claim, J.P. Morgan requested damages against Krumwiede in the amount of $1,140,885; damages against Bowman in the amount of $179,061; and damages against Schneider in the amount of $1,519,205. The firm also sought to have all three advisors pay attorney’s fees.


J.P. Morgan’s claims were “denied in their entirety” in a unanimous decision reached by a Finra arbitration panel on May 31.


At the same time, the arbitration panel denied the advisors’ motion to require J.P Morgan to pay sanctions and attorney fees, but did order the firm to pay hearing session costs of $17,650.


The advisors’ attorney, Leonard Weintraub, the managing partner for the law firm of Paduano & Weintraub in New York City, did not immediately respond to a request for comment.


 

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