Finra arbitrators award $1.8 million to former USAA brokers for wrongful termination

Finra arbitrators award $1.8 million to former USAA brokers for wrongful termination
Claimants received $850,000 in compensatory, $700,000 in punitive damages, $250,000 for attorneys
JUL 08, 2019

Finra arbitrators awarded $1.8 million to brokers who claimed they were wrongfully fired by USAA Financial Advisors. Christopher R. Johnson and Lee Anne Przybyla were dismissed by USAA in April 2017 for allegedly seeking compensation to which they were not entitled, according to the original entry in their BrokerCheck profiles. The arbitration award said the termination involved practices related to the preparation and publishing of financial plans. Mr. Johnson and Ms. Przybyla accused USAA of breach of contract, defamation and wrongful discharge, among other claims. (More: Vermont establishes restitution fund for victims of investment fraud) The three-person Financial Industry Regulatory Authority Inc. panel awarded Mr. Johnson $500,000 in compensatory damages and $350,000 in punitive damages. It awarded Ms. Przybyla $350,000 in compensatory damages and $350,000 in punitive damages. They received a total of $250,000 in attorneys' fees. The arbitrators also ruled that the reason for termination on their Form U5 documents should be changed to "voluntary resignation" from "involuntary termination" and that the termination comments should be blank. Five other former USAA brokers are pursuing similar arbitration claims against USAA, which primarily serves military service members and their families. Their cases were separated from the one involving Mr. Johnson and Ms. Przybyla and will be heard at a later date. (More:​ Auditor: Future of broker-dealer with history of problems is in doubt) "We are pleased for our clients, who had the courage to stand up and fight after they were wrongfully terminated, defamed and treated as scapegoats for the firm's own internal failures," George C. Miller, a partner at Shustak Reynolds & Partners, said in a statement. "No amount of money can compensate the claimants for what they went through, but our hope is the award will help them move on and restart their careers and send a clear and loud message to USAA that it cannot treat its employees in this manner." A USAA spokesperson did not immediately respond to a request for comment.

Latest News

Bluespring Wealth builds $1B team with Family Wealth Counseling deal
Bluespring Wealth builds $1B team with Family Wealth Counseling deal

The Kestra-owned RIA acquirer merges the planning firm into KDI Wealth Management, creating a majority woman-led advisor team

Gen X and millennials are rethinking retirement as pensions disappear
Gen X and millennials are rethinking retirement as pensions disappear

Eight in 10 pre-retirees say the US retirement system wasn't built for them and most still haven't planned how to make their money last.

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor