FINRA Arbitration and Appellate Victory Protecting Financial Services Founders
The Challenge: High-Stakes FINRA Compensation Dispute
O’Hagan Meyer partners Sam Edgerton and Johnny Antwiler represented the founders of an independent wealth hub and financial services advisory firm in a complex FINRA dispute lasting several years. Two former branch managers sought more than $15 million in compensation, claiming entitlement to payments related to the transfer of successful producers between branches.
Although one claimant received a FINRA award of $512,500, a critical issue arose when the client asserted entitlement to a $375,000 offset based on a prior settlement, reducing the actual exposure to $137,500, an amount already paid. The dispute escalated when the Superior Court entered judgment for the full award and declined to recognize the offset as a credit.
The Solution: Coordinated Arbitration, Regulatory, and Appellate Strategy
O’Hagan Meyer moved quickly to protect the clients after the Superior Court ruling, securing a regulatory stay before the FINRA Office of Hearing Officers to prevent suspension of the founders’ licenses while the matter was appealed. The firm then pursued appellate relief, arguing that the FINRA panel had never incorporated the offset into its award.
The Court of Appeal agreed, ruling that the offset qualified as an uncredited payment and remanding the matter to a new FINRA panel for reconsideration. Before the new panel, O’Hagan Meyer presented the issue with precision, demonstrating that the clients had already satisfied their financial obligations under the corrected award.
The Outcome: Award Deemed Satisfied and Licenses Preserved
The subsequent FINRA panel fully validated the clients’ position, concluding that the $137,000 award had been satisfied and awarded an additional $10,000 in attorneys’ fees. The ruling conclusively resolved the compensation dispute.
This multi‑step victory preserved the founders’ professional licenses, avoided improper additional payment, and brought a high‑exposure regulatory dispute to a successful close.
