Investment brokers to pay pro athetes arbitration settlement

Investment Brokers to Pay Two Pro Athletes in Arbitration Award

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Investment Brokers to Pay Two Pro Athletes in Arbitration Award

Investment brokers to pay pro athletes arbitration settlementIn an update shared by,, and others, two pro athletes have won an $819,000 arbitration award against Morgan Stanley Smith Barney investment brokers. The athletes are Keyon Dooling, a former NBA player and John St. Clair, a former NFL player. wrote:

The Financial Industry Regulatory Authority announced on Tuesday that Morgan Stanley Smith Barney was ordered to pay two former professional athletes over $800,000 after its brokers recommended “worthless” investments…”

This is not the first such award involving professional athletes. In March 2013, the Financial Industry Regulatory Authority (FINRA) issued this media release: FINRA Bars Florida Broker for Unsuitable Recommendations and Unapproved Securities Transactions Involving 31 NFL Players

In the 2013 case, FINRA barred broker Jeffrey Rubin of Lighthouse Point, Florida, from the securities industry for, “making unsuitable recommendations to his customer, an NFL player, to invest in illiquid, high-risk securities issued in connection with a now-bankrupt casino in Alabama. As a result, the customer lost approximately $3 million. Based on Rubin’s referrals, 30 other NFL players also invested in the casino project and lost approximately $40 million. Rubin also failed to obtain the required approval from his employers to participate in the securities transactions involving the casino.”

FINRA Executive Vice President and Chief of Enforcement said, “This case demonstrates how broker misconduct can target high-income, inexperienced, and vulnerable investors. Jeffrey Rubin took advantage of professional athletes who placed their trust in him.”


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