According to Investment News, former Morgan Stanley rep, John Offenburger, prevailed in a FINRA arbitration claim with the firm. The dispute alleged Offenburger breached the terms of a promissory note with the firm. Morgan Stanley alleged that following Offenburger’s termination from the firm he refused to pay the balance due on the note and sought $519,131.98 in payment.
Promissory note cases are a common form of FINRA litigation, arising when a broker leaves a firm before the full amount of a forgivable loan agreement has been forgiven. Unfortunately, most rep’s in this position are not as lucky as Mr. Offenburger.
According to Investment News, Mr. Offenburger filed a counter claim denying Morgan Stanley’s claim and alleging the firm breached his contract, made fraudulent or negligent presentations, defamation and tortious interference with business relations. Mr. Offenburgerclaim sought $1.395 in damages.
FINRA denied Morgan Stanley’s claim. According to the award letter FINRA found “that the promissory not was unenforceable and no fraud was proven. Mr Offenbureger was awarded $500,000 for lost income.
The White Law Group routinely represents advisors in promissory note claims involving their former employer, helping these advisors to either negotiate an agreeable settlement or litigate counterclaims based on the brokerage firm’s failure to deliver on recruiting promises.
For more information on FINRA promissory note claims and The White Law Group’s representation of brokers in these cases, visit here.
The White Law Group is a national securities arbitration law firm with offices in Chicago, Illinois and Vero Beach, Florida. For a free consultation with a securities attorney, please call the firm’s Chicago office at (312)238-9650.
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