An arbitration panel for the Financial Industry Regulation Authority has ruled against a former LPL Financial broker who sued two executives of his former branch for defamation and other claims.
The three-member panel on July 18 ordered Mark James Dickman to pay Robert P. Russo, CEO, and Jessica N. Sexton, chief compliance officer of Charlotte, N.C.-based Independence Advisor Alliance (IAA), a total of $408,439 in attorneys’ fees and costs, plus 8% interest per annum from the award date through and including the date it is paid off.
Dickman had sought expungement of a U5 Form filed by LPL and compensatory damages of at least $1.4 million from LPL and Russo and Sexton. Last April, he dropped LPL from his claims.
“The truth and the facts prevailed in this case, and we are pleased with the verdict and the award. We appreciate the arbitration panel's efforts on this case and that they recognized Mr. Dickman's lawsuit had zero merit. We consider this matter closed, and we wish Mr. Dickman well,” Russo said in an email to Financial Advisor.
But Dickman, who works for Wealth Management in Crescent Spring, Ky., said he is appealing the case. “A motion to vacate is being filed and I look forward to my case being presented in a court of law,” he told Financial Advisor in an email.
Dickman was terminated from IAA in December 2018, 10 days after his previous firm, Independent Financial Partners (IFP), where he had been since March 2011. The reason for the firing, according to BrokerCheck, was due to “termination from his registered broker-dealer.” The broker-dealer, LPL, with whom he had been affiliated with since August 2010, fired him in December 2018 for alleged “non-disclosure of beneficiary status within client trust, in violation of firm policy,” his record showed. Dickman's record does not show any statement of acceptance or denial of the allegation. But in the claim he filed, he said the U5 filed by LPL was "defamatorry in nature."
Besides compensatory damage and expungement of his U5, Dickman’s statement of claim, which was initially filed in August 2019 and amended twice, also requested punitive damages; attorneys’ fees; pre and post award interest at the statutory rate; all filing fees, hearing fees, and other FINRA arbitration costs; reimbursement of all other costs, including for claimant’s expert witness. He further asked that Sexton “draft a corrective letter that may be sent to Claimant’s past or current customers.”
In their response to Dickman’s claims, LPL, Russo and Sexton requested that the claims against them be denied and that attorney fees and all other costs be borne by Dickman.
In May, Russo and Sexton were granted a motion for “directed verdict” due to insufficient evidence presented at the evidentiary hearing. After the panel ordered briefing and oral argument on the request for costs, Russo ana Sexton, in June, filed a motion to determine attorneys’ fees and costs. Dickman then filed an opposition to the motion.
The panel sided with Russo and Sexton and denied Dickman’s request for all damages, fees and other costs. He was held liable for paying the executives $380,067 in attorneys’ fees and $28,372.00 in costs, plus interest. Dickman’s request for expungement of his U5 also was turned down by the panel.
Dickman also was ordered to pay $11,425.00 of the $15,850 in hearing session fees, while LPL, Russo and Sexton were liable for $2,350. The balance of $2,100 was assessed to Russo and Sexton.
Dickman began working in the industry with Metropolitan Life Insurance Company and worked for several firms including U.S. Bancorp Investments Inc., for 10 years before moving to LPL.