J.P. Morgan Securities has been ordered by a Finra arbitration panel to pay $250,000 to a dealer who claimed the corporate defamed him in a regulatory submitting after he moved to a different agency in 2022.

The three-member arbitration panel additionally advisable that the defamatory language on Michael C. Nolan’s Type U5 be expunged.

Nolan, who labored at J.P. Morgan for 31 years, resigned in September 2022 and joined RBC Capital Markets. The announcement by RBC on the time stated that he and his son, Brian Nolan, operated the Nolan Group and managed $1 billion in shopper property. 

Following his departure from J.P. Morgan, the financial institution in its Type U5 submitting, in accordance with BrokerCheck, acknowledged that Nolan was being reviewed internally for allegedly “sharing materials personal info with a shopper; failing to correctly disclose his private affiliation with an outdoor enterprise curiosity previous to requesting info from agency assets concerning the skin curiosity; and violating the agency’s coverage prohibiting the usage of unapproved digital communication channels for enterprise communications.”

Nolan claimed in his Finra grievance that the allegations had been “unfaithful, anticompetitive and defamatory.” He stated that he offered the financial institution with “proof of the falsity of the allegations lengthy earlier than it made these statements, and [J.P. Morgan] selected to make them solely to break my status.”

J.P. Morgan spokeswoman Trish Wexler stated the corporate declined to remark.

In his assertion of declare, initially filed in February 2023 with Finra, Nolan alleged defamation; tortious interference with potential contractual relations; and violation of Finra 1122, which prohibits inaccurate or deceptive info in Finra filings.

Nolan sought $5.2 million in compensatory damages; $1 million for emotional misery; and $555,000 in authorized charges, together with charges/prices incurred in the course of the financial institution’s inside investigation. He additionally had requested “as much as 10 instances the quantity of compensatory damages and punitive damages.”

Moreover, Nolan requested that his Type U5 be cleared of the defamatory language and that his employment termination confirmed as “voluntary,” and that there was “no violation of inside insurance policies.”

After 12 listening to periods, the arbitrators on Wednesday awarded Nolan $250,0000 in compensatory damages and wiped his report of any defamatory language.

The panel denied Nolan’s request for punitive damages and charges. Each events had been every assessed $11,137.50 in listening to charges.

Nolan started his profession in 1983 with Goldman, Sachs & Co., and labored for Morgan Stanley & Co., and Bear, Stearns & Co., earlier than becoming a member of J.P. Morgan.

His legal professional, Todd Gutfleisch, of New York–based mostly Harris St. Laurent & Wechsler LLP, stated they’re happy that the panel expunged the U5 filed by the financial institution, “which confirmed they clearly cited with us find its falsity and defamatory nature. And Mr. Nolan, after 41 years within the enterprise, deserves that,”