Finra arbitrators awarded $513,715 to a North Dakota woman who claimed Edward Jones improperly delayed payments to her following a bitter divorce because its representative favored her ex-husband.
The three-person Financial Industry Regulatory Authority Inc. arbitration panel
found Edward Jones liable and forced the brokerage to pay $380,862 in compensatory damages to Sandra Hendricksen Martire; $7,253 in compensatory damages to her daughter, Delise Morgan Martire; $125,000 in attorneys' fees; and a $600 filing fee.
The case stems from Ms. Martire's divorce in 2010 from her husband, Michael Martire, owner of a spine clinic in Bismarck, N.D. Each of the Martires received about $2 million in the settlement.
Ms. Martire alleged that
Edward Jones broker Troy Michael Nelson, a top producer for the firm in the state, improperly delayed divorce settlement payments to her until 2015 because he sided with Mr. Martire. She also alleged he disbursed marital funds to her ex-husband from a restricted account without her authorization and failed to terminate life insurance policies in custodial accounts held at the brokerage for which her daughter was the beneficiary.
The couple moved all their assets to Edward Jones in 1999. The number of accounts they held there and the amounts in them are in dispute. Ms. Martire alleged Edward Jones withheld information.
"They hid documents from the divorce court, they hid documents from the North Dakota securities investigation, they hid documents during the Finra proceeding," said DeVonna Murrin, administrator at Murrin Law Firm, which represented Ms. Martire. "There was a breach of fiduciary duty at all levels."
Ms. Martire filed her Finra arbitration claim in February 2015 and sought between $1 million and $5 million in compensatory damages.
"We're happy some of the truth is exposed," Ms. Murrin said. "This is just a gentle slap on the wrist for this $17.5 billion company."
Edward Jones disagreed with the outcome.
"This matter has had a long and contentious history, and we're disappointed with the arbitrators' decision," Edward Jones spokesman John Boul said in a statement. "We are evaluating whether to appeal."
The Finra arbitrators denied Edward Jones' request for expungement of Mr. Nelson's BrokerCheck record.
