Ex-JPMorgan broker must pay ex-wife $2.6 million over improper trading claim

Defendant stood accused of common-law fraud and breach of fiduciary duty among other allegations

Ex-JPMorgan broker must pay ex-wife $2.6 million over improper trading claim

A divorced couple in the U.S. have become embroiled in an expensive regulatory case, with the Financial Industry Regulatory Authority (Finra) arbitration panel ordering a former JPMorgan broker to pay his ex-wife close to $2.6 million over allegations of improper trading.

According to Financial Advisor IQ, in November 2018 Elizabeth Snyder asserted common law fraud, negligent misrepresentation, breach of fiduciary duty, negligent management and negligent supervision, among other infractions, in connection with trading of securities on margin, day trading, short sales and investment in two stocks. The claim named Barry Snyder, JPMorgan, Deutsche Bank Securities and Montecito Advisors as the defendants.

Barry Snyder was with Deutsche Bank Securities from 2003 to 2009, when he left for Credit Suisse Securities, and came to JPMorgan in 2013 after Credit Suisse discharged him over “concerns relating to the accuracy of records regarding certain orders the representative said he took from customers”, according to records.

Elizabeth Snyder sought around $5.2 million in damages, inclusive of roughly $1.1 million in prejudgment interest, Finra said. Arbitrators ordered Barry Snyder to pay around $2.6 million to his ex-wife in compensatory damages as well as $10,125 of the $11,700 total hearing session fees.