June 23, 2021
(L-R) Barney Greengrass, Actor Alec Baldwin and Gary Greengrass go to the Barney Greengrass celebration of 100 several years on June 18, 2008 at Barney Greengrass in New York. (Photo by Joe Corrigan/Getty Illustrations or photos)
A dispute more than a massive money client that allegedly went all the way to the best of the property at J.P. Morgan resulted past week in a panel of arbitrators shooting down a broker’s “unjust enrichment” claim from his previous employer and alternatively purchasing him to repay hundreds of countless numbers of dollars he owed on a promissory note.
3 arbitrators with the Economical Marketplace Regulatory Authority rejected Barney Greengrass’ assert for up to $13 million in compensatory damages, and two non-business panelists ordered him to repay J.P. Morgan Securities more than $457,000 for the promissory notes as well as desire, according to an award finalized June 15.
Greengrass, a 40-year New York Town broker and scion of the founder of the famed Jewish deli of the similar identify on Manhattan’s Upper West Facet, still left J.P. Morgan at the starting of 2018 soon after an internal dispute about an account building thousands and thousands of pounds in commission, he mentioned in an job interview. He currently will work at Aegis Cash Corp, according to registration data.
“I’m grossly disappointed,” Greengrass, who fought a promissory notice battle as soon as prior to when leaving Morgan Stanley for J.P. Morgan in 2010, mentioned in an interview. “They really should not have had the promissory be aware awarded mainly because they harmed my potential to repay it.”
His first unjust enrichment claim, submitted with Finra in September 2019 but not elaborated on in the award document, centered on Greengrass’ allegation that one more J.P. Morgan worker in its institutional business in March of 2016 stole his biggest consumer, a hedge fund customer, and denied him an chance to co-deal with the account even with the client’s wishes, in accordance to Greengrass and his law firm, Ethan A. Brecher with an eponymous company in New York.
Soon following the account was reassigned, Greengrass secured a conference with J.P. Morgan Chief Executive Jamie Dimon, who then brokered a “deal” for Greengrass to acquire a 20% commission for a yr, Brecher explained. But the deal was granted below bogus pretenses as the two Greengrass and Dimon ended up misled by a supervisor at the firm to believe that a customer had initiated the switch, the law firm said.
A spokeswoman for J.P. Morgan, which counterclaimed in December 2019 for the take note stability, declined to remark on the arbitration and a observe-up inquiry on Greengrass and Brecher’s statements. Dimon did not return an e-mail about the subject.
Brecher stated they strategy to question a court docket to vacate the decision on procedural grounds that JPMorgan Chase, rather than J.P. Morgan Securities, was the holder of the note, and to re-raise the situation that the company unfairly harmed the broker by poaching his most rewarding consumer.
It was the similar argument that 1 of the panelists, an industry arbitrator, elevated in dissenting specially on the promissory be aware repayment part of the award. The arbitrator, who agreed with denying Greengrass’ declare for damages, stated he did not believe J.P. Morgan experienced the “standing to assert the claim on the promissory notice.”
The panel also held Greengrass liable for most of the arbitration fees, according to the award, which assessed $11,200.00 of the hearing session charges to the broker and the remaining $5,600 to J.P. Morgan.
In 2013, Greengrass, whose occupation has spanned 7 companies, and Brecher had been productive in fending off a $1.1 million lawsuit from Morgan Stanley, looking for compensation of notes immediately after Greengrass’ transfer in 2010 to J.P. Morgan Securities.
The wirehouse had claimed Greengrass owed around $940,550 plus interest for the reason that he still left the business before satisfying the conditions of his 2005 signing bonus. Greengrass countered, expressing the firm did not make great on a promise that his massive institutional accounts would be presented with the same preferential margin curiosity rates and margin collateral levels they liked whilst at Smith Barney, his former employer.
Greengrass confirmed the hedge fund account at issue in the J.P. Morgan circumstance was his most significant but did not offer any figures for his belongings overseen or annual revenue.
“Over my profession I have produced pretty large accounts–dealt with the biggest of the major,” he claimed. “I was capable to develop him, preserve him, and continue to keep the relationship heading for [J.P. Morgan] to steal at a time their business enterprise was in drop. My small business was doubling and tripling at that issue they had been grabbing for earnings.”