Arb Panel Shoots Down Broker’s Defamation Bid for $3 Mln from Wells, JPMorgan
An Indiana broker who within a span of four months was forced out of JPMorgan Securities and Wells Fargo Advisors has lost a bid for some $3 million from her former employers and expungement of their explanations for her dismissal on regulatory records.
Three Financial Industry Regulatory Authority-convened arbitrators denied Deborah “Liz” Greenlee-Keck’s requests and instead ordered her to pay Wells the $327,521 balance associated with promissory notes she had signed, according to the award settlement posted on a Finra website on Wednesday.
Greenlee-Keck, who since the end of 2015 has been affiliated with independent broker-dealerCoastal Equities in Elkhart, according to her BrokerCheck report, resigned while under review from JPMorgan on June 26, 2015, and was discharged from Wells Fargo Advisors on October 1, 2015, after a three-month stay.
She did not respond to requests for comment about the decision.
The arbitration panel granted Greenlee-Keck’s opposition to an “explained decision” that Wells Fargo had requested in its breach-of-promissory note counter-suit seeking $297,838.
In her arguments, the broker asserted that “her career was destroyed by JPMS’s campaign of defamation against her when she resigned from JPMS and WFA’s termination of her employment with WFA,” according to the award document.
Greenlee-Keck resigned voluntarily from JPMorgan Securities in June 2015 while under internal review for using a client’s funds to pay down the credit card balance of another client of a bank affiliate, according to her BrokerCheck report. The client paying the balance had authorized the transaction, but it was executed in violation of company policy, JPMorgan said.
Greenlee-Keck joined Wells Fargo the same day of her resignation, but Wells discharged her in October for failing to disclose the internal review at JPMorgan, according to BrokerCheck.
“Facts and circumstances associated with said internal review would have resulted in firm not hiring team member,” Wells said on the U5.
The panel gave Greenlee-Keck one victory. It ordered JPMorgan to add language to its U5 termination statement to clarify that “no theft or fraud was determined by the internal review.”