Former A.G. Edwards broker Jimmy Lindsey and his brother Randy won a $150,000 judgment against the St. Louis-based firm, according to an NYSE arbitration case.
A.G Edwards was ordered to wipe out a $128,571 debit claim against the Lindsey’s and was sanctioned $15,000 in attorneys' fees for "abuse of the discovery process," according to arbitrators Robert A. Bettis, Allen Butler and G. Dale McKissick.
In the case that was decided Feb. 14, 2001, the firm was also ordered to pay $30,000 in expert witness costs and to amend Lindsey's U-5. Also, the NYSE denied all of A.G. Edwards’ counterclaims.
According to the Lindsey’s attorney, William Federman, of the law firm Dreier Baritz & Federman, Randy Lindsey filed a claim as a customer for securities law violations, while Jimmy Lindsey filed his as a former broker for alleged wrongful termination. A.G. Edwards, in turn, claimed a debit balance of $128,571. The NYSE panel assessed $150,000 in compensatory damages, allocating $100,000 to Randy and $50,000 to Jimmy.
According to Federman, A.G. Edwards claimed on Lindsey’s U-5 that “he failed to follow house guidelines.” The firm was ordered to amend the U-5 to state that the reason for termination was "voluntary," according to the case decision.
Lindsey is no longer working as a broker, Federman says.
NYSE forum fees of $8,700, representing 14 hearing sessions and one prehearing conference, were assessed equally against A.G. Edwards and claimants.
A.G. Edwards had no comment on the case.
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