Earl Bernard Rideau v. Alex Bedo Chalekian
Published: Oct. 6, 2017 | Result Date: Aug. 15, 2017 | Filing Date: Dec. 16, 2016 |Case number: FINRA 16-03657 Arbitration – Respondent
Arbitrator
Attorneys
Claimant
John Ryan Gustafson
(Gustafson Nicolai PC)
Respondent
Haig Keledjian
(Law Offices of Haig Keledjian)
Facts
Earl Rideau filed a claim against Alex Chalekian in connection with the dissolution of the parties' partnership in Lake Avenue Financial LLC. Chalekian filed a counterclaim against Rideau.
Contentions
CLAIMANT/CROSS-RESPONDENTS' CONTENTIONS: Claimant asserted causes of action for breach of contract; commissions; and wrongful termination. Claimant denied the allegations in respondent's counterclaim and asserted various affirmative defenses.
RESPONDENT/COUNTER-CLAIMANT'S CONTENTIONS: Respondent denied the allegations and asserted various affirmative defenses. In his counterclaim, respondent accused claimant of unilaterally moving clients out of the Retirement Depot and Seran Investment Strategies practices. He also accused claimant of unilaterally withdrawing $99,884 from the partnership without obtaining express permission from the managing member. Claimant also allegedly unlawfully took clients and assets from the partnership.
Damages
Rideau sought $126,711 in damages, consisting of fees commissions, 50 percent of his share in the partnership, fees, and interest. Chalekian sought $7.7 million in total compensation attributable to the partnership's loss, which include lost revenue, chargebacks, unauthorized withdrawal, and operating costs.
Result
The FINRA Panel denied Rideau's claims in their entirety. The Panel likewise denied Chalakian's counterclaims in their entirety. Then, pursuant to the parties' stipulation, Rideau agreed to relinquish all interest in the partnership and assign all rights, title, and control to Chalakian as of March 31, 2016.
Other Information
ARBITRATORS: Ronald L. Cameron, public chairperson; Judith Porter; Jeffrey E. Skogsbergh.
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