A former Fidelity broker may use a recent Finra arbitration victory against his former employer to return to the financial industry.
Ryan Sanghak Lee filed a wrongful termination claim against Fidelity Brokerage Services and Fidelity Personal Workplace Advisors after he was fired in December 2018. The firm accused Lee of manipulating client communications in order to increase his compensation. Lee denied the allegation.
In a 2-1 decision, a Financial Industry Regulatory Authority Inc. arbitration panel found Fidelity liable and ordered the firm to pay $499.999.99 in compensatory damages, according to the Dec. 27 award. The split panel also granted Lee’s request to expunge on his Form U5 the reason for his termination, as well as a customer complaint that was filed after his dismissal in 2019 after his dismissal the previous year.
The arbitrators ruled that the explanation for Lee's departure should read: “After a dispute between employer and employee relating to an accusation that employee violated rules relating to customer interactions, employee left the company.”
The dissenting arbitrator, Howard Hirschhorn, said that an award should have been entered in favor of Fidelity and that Lee’s claims should have been dismissed. The award given to Lee by the other two arbitrators was half of the $1 million in damages he originally sought.
But Lee’s attorney was pleased with the outcome of the case.
“I believe the award is vindication for Ryan’s rights,” said Laurence Landsman, a partner at Landsman Saldinger Carroll. “It compensates him for significant losses he suffered. It gives him an opportunity now … to resume the career he successfully pursued for 20 years.”
The amount of the damages awarded combined with the expungement approval “is powerful evidence that we were right to bring this claim and Fidelity was wrong in the termination of Ryan,” Landsman said.
A Fidelity spokesperson declined to comment.
Lee worked for Fidelity Brokerage Services from 2012 to 18 in Wayne, N.J. He began his career in July 2000 at Janney Montgomery Scott in Philadelphia, and went on to work for Citicorp and Merrill Lynch in New York City. Prior to joining Fidelity, he had four customer disputes. One was denied and the others were settled, according to his BrokerCheck record.
Landsman downplayed the previous allegations and said Lee had had had a successful career as a financial advisor.
“He really enjoyed it and did well at it,” Landsman said.
After leaving Fidelity, Lee worked for one year at Santander Securities in Livingston, New Jersey. He’s now out of the industry.
“As a result of the [arbitration win], he’s considering what he wants to do,” Landsman said.
Landsman has represented brokers in many wrongful termination cases. He said the financial industry is different from other sectors in that the reason for firings can be recorded in BrokerCheck. The language there can haunt brokers and change their career trajectory.
That’s why firms must be fair when dealing with employee departures, Landsman said.
“You have to hold yourself to a high standard in investigations, termination decisions and U5 disclosures,” he said.
Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.
Futures indicate stocks will build on Tuesday's rally.
Cost of living still tops concerns about negative impacts on personal finances
Financial advisors remain vital allies even as DIY investing grows
A trade deal would mean significant cut in tariffs but 'it wont be zero'.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
