Finra panel awards two brokers $1.2 million
Banc of America Investment Services allegedly sullied brokers' reputations, damaged potential relationships with clients.
Two former brokers with Banc of America Investment Services Inc. won a total of $1.2 million in an arbitration case that focused on allegations the broker-dealer sullied their reputations and potentially damaged their future relationships with clients.
Both brokers, who are based in Las Vegas, left Banc of America Investment Services and became affiliated with Commonwealth Financial Network of Waltham, Mass., in October 2004.
The award, which arbitrators signed off on at the end of last month, also ordered the erasing of language of a “defamatory nature” on the brokers’ U-5s, or termination forms.
The three-person Financial Industry Regulatory Authority arbitration panel ordered Banc of America Investment Services to pay Rock Mirich $800,000 and Brent Cowin $400,000.
The panel also ordered three executives with the firm to pay the brokers awards of $5,000 to $10,000.
The brokers alleged that Banc of America Investment Services, a subsidiary of Bank of America of Bank of America Corp. of Charlotte, N.C. and some executives intentionally interfered with prospective business relationships, libeled and slandered the brokers and fired them wrongfully, along with other claims.
The arbitrators denied Banc of America’s counterclaims.
A spokesman for Banc of America Investment Services did not return a call by press time.
For the full report, see the upcoming Aug. 18 issue of InvestmentNews.
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