As I have said, brokers can win promissory note cases. It is not easy, but with the right attorney, and the right set of facts, a broker's counterclaim can wipe out the obligation under the note; and then some.
Just last week, an arbitration panel awarded an ex-advisor more than $1.7 million from Wells Fargo for wrongful termination and other misconduct, and the panel rejected the firm's claims under the note.
The promissory note had about $200,000 left to repay and Wells Fargo terminated the broker, claiming on his U-5 that he failed to follow procedure with regard to "contacting customers prior to entering orders."
That didn't fly with the arbitrators who awarded a variety of damages, including $1.1 million representing what the broker"would have earned in commissions, commission bonuses, and other compensation and benefits, between his termination date and the date that he likely would have
actually retired, but for the termination at issue."
The lesson? If you are forced to leave your firm, or terminated, don't simply agree to pay the firm. Call our office, and let us see if we can help you recover your damages.
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Brokers Can Win Promissory Note Cases
