FINRA Panel Tags Morgan Stanley with $800k Arbitration Award Relating Failure to Supervise Broker Aaron R. Parthemer

By June 27, 2016 September 20th, 2017 News

A FINRA Arbitration Panel awarded two former pro athletes, NBA guard Keyon Dooling and NFL offensive tackle John St. Clair, over $800,000 from Morgan Stanley Smith Barney for the negligent supervision of former Morgan Stanley broker Aaron R. Parthemer.  FINRA Case No. 15-01066.  The case involved Parthemer’s role in the sale of investments in Global Village Concerns, Inc., which was a startup internet branding company.  The Panel also awarded expert fees to Claimants and assessed Morgan Stanley with all arbitration hearing fees.

Aaron Parthemer was employed by Morgan Stanley from June 2009 to October 2011.  He was then employed by Wells Fargo Advisors from October 2011 to April 2015.  According to FINRA’s BrokerCheck report, in April 2015, Parthemer was “permitted to resign” from Wells Fargo after agreeing to be banned from the securities industry by FINRA.  Mr. Parthemer has been the subject of 3 customer arbitration proceedings, including one filed in June 2015 seeking nearly $5 million in damages.

According to FINRA’s Letter of Acceptance, Waiver, and Consent (“AWC”), No. 2011030405801, Parthemer agreed to be barred from the securities industry in the midst of FINRA investigation relating to his misconduct.  FINRA alleged, among other things, that Parthemer:

  • engaged in several undisclosed outside business activities, including a Miami Beach nightclub and the marketing of tequila;
  • Impermissibly loaned over $400,000 to his customers; and
  • presented an undisclosed private securities transaction in Global Village Concerns, in which several customers invested more than $3 million.

FINRA alleged that Parthemer’s conduct violated several FINRA rules.

Fishman Haygood represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.

Of course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood lawyer today.

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