Kenneth E. Chyten v. United Capital Markets Inc., Dennis John Devaney
Published: Feb. 14, 2009 | Result Date: Jan. 23, 2009 | Filing Date: Jan. 1, 1900 |Case number: 07-02901 Arbitration – Expungement recommended
Court
Arbitration Forum
Attorneys
Claimant
Respondent
Joseph E. Floren
(Morgan, Lewis & Bockius LLP)
Facts
Claimant Kenneth Chyten filed a statement of claim against respondents United Capital Markets Inc. and Dennis John Devaney, alleging breach of fiduciary duty; constructive fraud; fraud by misrepresentation and omission; failure to supervise and control; violation of Securities and Exchange Act sections 10, 20, 12(2), 15, and Rule 10(b)-5; violation of California Corporate Securities Law section 25100; and breach of FINRA's Rules of Fair Practice.
Damages
Claimant sought compensatory damages in the amount of $350,000; punitive damages; interest; lost opportunity; and attorney fees. Claimant requested dismissal of the claim or to have the matter stayed until arbitration proceedings concluded in Miami, Florida.
Result
The panel recommended expungement of all references to the arbitration from respondent Devaney's registration records maintained by the Central Registration Depository (CRD), with the understanding that he obtain confirmation from a court of competent jurisdiction before the CRD executed the expungement. Further, unless specifically waived in writing by FINRA, parties seeking confirmation of an arbitration award containing expungement relief must name FINRA as an additional party and serve it with documents. The panel found the allegation was erroneous and the registered person was not involved in the alleged investment-related sales practice violation.
Other Information
FILING DATE: Oct. 10, 2007. ARBITRATORS: Laurent Vonderweidt, Edward Costello, Kenneth Rosenblum.
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