Benjamin F. Edwards Inc. also anticipated leasing office space from Peeler, Fitzgerald and another financial advisor in hopes that it would house a large branch office with more advisors. (That fell through.)
The advisors and Benjamin F. Edwards Inc. said in their response to the cliam that Fitzgerald and Green left because they didn’t agree with the way Stephens was handling the Department of Labor’s new rules for retirement accounts. These accounts were given new designation by Stephens, including certain flat fee categories. To the extent these new fee structures hurt Fitzgerald and Green, the fee categories were either put in place after the two had already made their commitments to Edwards or otherwise the move to wouldn’t have been in clients’ best interest in any case, Stephens said.
The arbitration found that the four advisors, as well as Benjamin F. Edwards IV and Benjamin F. Edwards Inc., were liable for $10.97 million in compensatory damages. Benjamin F. Edwards Inc. was liable for $2 million in punitive damages, Benjamin F. Edwards IV was liable for $2 million in punitive damages, and Peeler was liable for $1 million in punitive damages. All the respondents were liable for more than $2.2 million in attorney’s fees.