A FINRA arbitration panel from New York issued an award dated July 10, 2017, in favor of customer Timothy McLaughlin against Northeast Securities, Inc., and three of its employees, Steven Joseph Perrone, Diane Hawkins and Jonathan Michael Zucker. Northeast Securities and the three employees were all named as respondents in the claim. FINRA Arbitration No. 16-01806
The three employees worked out of a Northeast Securities office in Mitchel Field, NY.
McLaughlin alleged fraud, churning, breach of fiduciary duty and failure to supervise, among other claims. The claim involved trading in corporate bonds and sought $3 million in damages.
The panel issued a “joint and several” award (meaning Northeast and the three individual respondents are all responsible for the award). The panel awarded McLaughlin $1.76 million in compensatory damages, interest on that amount and $33,840 in expert witness fees.
The panel denied the requests of the three individual respondents to have the report of this arbitration expunged from their CRD customer dispute disclosure histories (the BrokerCheck reports for Perrone and Hawkins do not list this arbitration on their disclosure history; that will presumably change with this award).
Perrone has worked at Northeast Securities since 1990. Hawkins has been there since 2008. They were presumably supervisors of Zucker.
Zucker has worked at Northeast Securities since 2012. He previously worked at Wunderlich Securities from July 2010 to December 2012. He also worked at Jessup & Lamont from 2008 to 2010. Jessup & Lamont was expelled from FINRA in 2010.
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Nicholas J. Guiliano has over twenty years experience representing investors before the Financial Industry Regulatory Authority, the New York Stock Exchange and before the National Association of Securities Dealers, Office of Dispute Resolution. Over the last twenty years, he has represented more than a thousand investors from all across the United States and from several foreign countries, in claims against stockbroker and broker-dealers for fraud, breach of fiduciary duty, churning or excessive trading, the sale of unsuitable investments, the sale of defective investments, the sale of unregistered securities, and the failure to supervise. He is frequently quoted in the national media on securities and investment related issues, most recently on National Public Radio. He offers his services on purely a contingent fee basis, and is also a member of Public Investors Arbitration Bar Association.