September 24, 2021
A veteran department supervisor in Florida who had spent nearly three a long time with Morgan Stanley and predecessor corporations failed to influence Monetary Trade Regulatory Authority arbitrators that the wirehouse ought to pay greater than $Four million in damages based mostly on his wrongful termination, defamation and breach of contract claims.
The panel additionally denied Robert P. McCabe, Jr.’s bid to take away from his document a reference to his discharge.
McCabe, who’s now a department supervisor at Oppenheimer & Co.’s Palm Seashore Gardens workplace, additionally misplaced his bid to expunge the firing from his document, based on the award issued by a three-person panel on September 14.
Morgan Stanley had terminated McCabe from his publish as West Palm department supervisor, in June 2018 “for his function in onboarding a recruit,” based on U5 language out there on a Central Registration Depository “Snapshot” report. The arbitrators gave no cause for his or her ruling within the award.
McCabe’s lawyer, Jonathan B. Butler at Ciklin Lubitz, didn’t reply to a request for remark, and McCabe didn’t reply to requests despatched via LinkedIn and Oppenheimer spokespeople.
McCabe hadvert initially sought $5 million in damages tied to Morgan Stanley’s alleged cancellation and “misappropriation” of compensation and retirement advantages and $15 million in punitive damages. He amended his claims through the listening to to $330,367 for cancelled deferred pay, $2 million for misplaced earnings, $1 million for reputational damages tied to the U5 submitting and $1 million for punitive damages, based on the award.
In its reply, Morgan Stanley denied the allegations and defenses, according to the Finra award, which didn’t present further particulars of the agency’s arguments. A Morgan Stanley spokeswoman didn’t instantly return a request for remark.
McCabe, who was an “On Wall Avenue” journal prime 100 department supervisor from 2010 to 2012, had overseen 60 brokers at Morgan Stanley on the time of his departure, based on an on-line bio. His departure from Morgan Stanley got here amid a turbulent time for the agency’s area management in South Florida, together with the departure 18 months earlier of the advanced supervisor and the brokerage’s pairing of two of its 4 Boca Raton workplaces.
McCabe started his profession as a registered securities rep in 1984, with Buckingham Securities, and likewise labored at L.F. Rothschild and Morgan Stanley predecessors Dean Witter Reynolds, Lehman Brothers and Smith Barney, based on BrokerCheck. After leaving Morgan Stanley, he labored for Greenwich, Connecticut-based Fieldpoint Personal Securities, a agency based in 2008 by plenty of outstanding ex-wealth executives, for 2 years previous to becoming a member of Oppenheimer.
When he joined Oppenheimer, its managers extolled McCabe’s advantage.
“Bob McCabe is precisely the kind of Department Supervisor that has come to outline Oppenheimer, typifying the management, assist and assets we offer to entrepreneurial-minded monetary advisors,” Ed Harrington, govt vp and head of the Personal Consumer Division at Oppenheimer stated in a assertion in January.
Oppenheimer’s East Coast Florida advanced, led by Brian Kutsmeda, consists of 41 advisors in two branches in Delray Seashore and Boca Raton in addition to the Palm Seashore workplace and manages a mixed $three billion in consumer belongings, based on the discharge.
New York-based Oppenheimer had 1,004 brokers as of June 30, down a web 25 from 1,029 the prior yr, based on its most up-to-date earnings report.