Finra panel orders former broker to pay Raymond James almost $1 million

A hearing panel of the Financial Industry Regulatory Authority Inc. has ordered former Raymond James broker John Charles Wyshak to pay the firm almost $1 million for breaching his agreement with the firm and to indemnify clients for churning and other abuses alleged by Mr. Wyshak's former clients, as well as costs associated with the arbitration. [Recommended video: Michael Kitces: Subtle word changes that make a significant difference with clients]​ Specifically, the arbitrators ordered Mr. Wyshak, who left Raymond James in 2018, to pay the firm $932,471.05 in compensatory damages, plus interest of 10% since July 2, 2018, as well as $4,520.47 in costs and $17,677.65 in attorneys' fees. The compensatory damage portion of the award consists of $232,471.05 plus interest for Mr. Wyshak's breach of his loan terms agreement with the firm, as well as $700,000 for the cost of indemnifying clients. [More: Finra panel orders Raymond James to pay former broker more than $500,000 for defamation]​ In its award, the Finra panel explained that Mr. Wyshak certified that he reviewed, understood and signed the Raymond James Financial Advisor Instructions, which state that he would be charged when he was responsible for firm losses. This includes charges to reimburse the firm for the cost of defending and settling client claims, complaints, arbitrations and lawsuits if the action giving rise to the client's cause of action are attributable to the broker who signed the agreement, whether or not he was still registered with Raymond James at the time of firm loss. In his statement of answer, Mr. Wyshak told Finra that he is unable to repay his signing bonus and that his clients were reassigned to current Raymond James brokers and commissions are being generated to offset any obligations he may have. [More: Finra moves forward after 360 appraisal]​