stipulated Award FINRA Dispute Resolution In the Matter of the Arbitration Between: Claimant Christine Frole Case Number: 12-02153 vs. Respondent Chase investment Services Corp. Gregg A. Kleinbaum Joseph Mignano Jason Navolio Dennis Zaplin Hearina Site: Newark, New Jersey Nature of the Dispute: Associated Person vs. Member and Associated Persons REPRESENTATION OF PARTIES For Claimant Christine Frole: Blaine H. Bortnick, Esq., Liddie & Robinson, L.L.P., New York, NY. For Respondents Chase investment Services Corp. ("Chase"), Gregg A. Kleinbaum ("Kleinbaum"), Joseph Mignano ("Mignano"), Jason Navolio ("Navolio"), and Dennis Zaplin ("Zaplin"): Lawrence R. Sandak, Esq., Proskauer Rose LLP, Newark, NJ. CASE INFORMATION Statement of Claim filed on or about June 11, 2012. Christine Frole signed the Submission Agreement: June 6, 2012. Joint Statement of Answer filed by Respondents on or about September 11, 2012. Chase signed the Submission Agreement: October 23, 2012. Kleinbaum signed the Submission Agreement September 18, 2012. Mignano signed the Submission Agreement: September 18, 2012. Navolio signed the Submission Agreement September 18,2012. , Zaplin signed the Submission Agreement September 18, 2012.
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stipulated Award FINRA Dispute Resolution
In the Matter of the Arbitration Between:
Claimant Christine Frole
Case Number: 12-02153
vs.
Respondent Chase investment Services Corp. Gregg A. Kleinbaum Joseph Mignano Jason Navolio Dennis Zaplin
Hearina Site: Newark, New Jersey
Nature of the Dispute: Associated Person vs. Member and Associated Persons
REPRESENTATION OF PARTIES
For Claimant Christine Frole: Blaine H. Bortnick, Esq., Liddie & Robinson, L.L.P., New York, NY.
For Respondents Chase investment Services Corp. ("Chase"), Gregg A. Kleinbaum ("Kleinbaum"), Joseph Mignano ("Mignano"), Jason Navolio ("Navolio"), and Dennis Zaplin ("Zaplin"): Lawrence R. Sandak, Esq., Proskauer Rose LLP, Newark, NJ.
CASE INFORMATION
Statement of Claim filed on or about June 11, 2012. Christine Frole signed the Submission Agreement: June 6, 2012.
Joint Statement of Answer filed by Respondents on or about September 11, 2012. Chase signed the Submission Agreement: October 23, 2012. Kleinbaum signed the Submission Agreement September 18, 2012. Mignano signed the Submission Agreement: September 18, 2012. Navolio signed the Submission Agreement September 18,2012. , Zaplin signed the Submission Agreement September 18, 2012.
FINRA Dispute Resolution Arbitration No. 12-02153 Stipulated Award Page 2 of 5
CASE SUMMARY
Claimant asserted the following causes of action: U5 defamation, defamation, fraud, conspiracy to commit fraud, tortious interference with business relations, and RICO violations.
Unless specifically admitted in their Answer, Respondents denied the allegations made in the Statement of Claim and asserted various affinnative defenses.
RELIEF REQUESTED
Claimant requested compensatory damages of no less than $2,000,000.00, treble damages, interest, attorneys' fees, costs, and expungement of her fomi U5.
Respondents requested dismissal of the Statement of Claim in its entirety.
OTHER ISSUES CONSIDERED AND DECIDED
The Arbitrators acknowledge that they have each read the pleadings and other materials filed by the parties.
On or about September 18, 2013, the parties notified FINRA that this matter has been settled, and submitted a proposed Stipulated Award for the panel's consideration.
The parties agreed that the Stipulated Award in this matter may be executed in counterpart copies or that a handwritten, signed Stipulated Award may be entered.
FINRA Dispute Resolution Arbitration No. 12-02153 Stipulated Award Page 3 of 5
AWARD
The parties entered into an agreement to present to the Panel a Stipulated Award. Now, in lieu of a hearing and upon motion of both parties for an entry of an award, and the written stipulation thereto, the Panel grants the motion and enters this award granting the following relief:
1. The Panel recommends the expungement of the "Yes" answer to Question 7F(2) from Section 7 of Claimant Christine Froie's (CRD # 1206063) Form U5 filed by Chase Investment Services on November 17, 2011 and any subsequent amendments maintained by the Central Registration Depository ("CRD"). The answer to Question 7F(2) shall be changed to "No." The Panel recommends that the answer to Question 7F(1) shall remain "Yes."
The Panel further recommends the expungement of the responses to Item 3 in Part i of the Internal Review Disclosure Reporting Page ("DRP") and to Item 4 in the Tennination DRP filed by Chase investment Services on November 17, 2011, and any subsequent amendments maintained by CRD. Both responses shall be replaced with the following: "Registered rep resigned while under routine internal review for allegedly maintaining client signed incomplete account documents and photocopies of a client signed document that contained inked in infonnation. The review concluded upon the registered rep's voluntary termination."
Additionally, the Panel recommends the expungement of the response to item 4 in the Tennination DRP of Claimant Christine Froie's Form U4 filed by Ameriprise Financial Sen/ices, Inc. on December 7, 2011, and any subsequent amendments maintained by the CRD. The response shall be replaced with the following: "Registered rep resigned while under routine internal review for allegedly maintaining client signed incomplete account documents and photocopies of a client signed document that contained inked in infonnation. The review concluded upon the registered rep's voluntary tennination."
Claimant's registration records are not automatically amended to include the changes indicated above. Claimant Christine Frole must obtain confimriation of this Award from a court of competent jurisdiction before CRD will execute the expungement directive. Claimant Christine Frole must forward a copy of this award along with a court's order confirming this Award to FINRA's Registration and Disclosure Department for the amendments to be incorporated into her registration records.
2. It is further ordered that the parties shall bear their respective costs, including attorneys' fees.
FINRA Dispute Resolution Arbitration No. 12-02153 Stipulated Award Page 4 of 5
3. Any and all relief not specifically addressed herein, including treble damages, is denied.
FEES
Pursuant to the Code, the following fees are assessed:
Filing Fees FINRA Dispute Resolution will retain or collect the non-refundable filing fees* for each claim:
initial Claim Filing Fee =$ 1,800.00
*The filing fee is made up of a non-refundable and a refundable portion.
Member Fees Member fees are assessed to each member firm that is a party in these proceedings or to the member firm that employed the associated persons at the time of the events giving rise to the dispute. Accordingly, as a party. Chase Investment services Corp. is assessed the following:
Member Surcharge =$ 3,350.00 Pre-Hearing Processing Fee =$ 750.00 Hearing Processing Fee =$ 5,500.00
Hearing Session Fees and Assessments The Panel has assessed hearing session fees for each session conducted. A session is any meefing between the parties and the arbitrators, including a pre-hearing conference with the arbitrators, that lasts four (4) hours or less. Fees associated with these proceedings are:
One (1) Pre-hearing session with the Panel @ $1,200.00/session = $1,200.00 Pre-hearina conference: December 11. 2012 1 session Total Hearing Session Fees = $1,200.00
The Panel has assessed $600.00 of the hearing session fees to Claimant. The Panel has assessed $600.00 of the hearing session fees to Respondent Chase investment Services Corp.
Ail balances are due and payable to FINRA Dispute Resolution upon receipt.
FHNRA Dispute Resoiution Arbitration No. 12-02153 Stipulated Awatri Papa 5 nf s
ARBITRATIQM PAH^ i
Unda J. Baer Scott Mooney Laura H. Goldzung
Public Afbitrator, Presiding Chairperson Public ArbitFator Non-l=>ublic AriJitrator
I. the undersigned Arbitrator, do hereby affirm that I am the individual descnbed herein and who executed this instnjment which is my award.
Concurring Arbitratora' Sfqnatufea
Linda J. Baer Public Arbitrator, Presiding Chairperson
Signature Pats *"
Scott Mooney Public Arbitrator Signature Date
Laura H. Gokizung Non-Public Arbitrator
S^nature Date
January 7, 2014 Date of Service (For FINRA Dispute Resolution office use only)
FINRA Dispute Resolution Arbitration No. 12-02153 Stipulated Aivard Paqp n nf i
Linda J . Baer . Scott Mooney Laura H. Goldzung
ARBITRATION PANEL
Public Arbitrator, Presiding Chairperson Public Arbitrator Non-Public Arbitrator
Concurririfi Arbitrators' fiiq^,*..^^
Linda J. Baer Public Arbitrator, Presiding Chairperson
Scon,(V|bqp6y / / PubHo^Arbitratof /
Signature Date
Signature Date
Laura H. Goldzung Non-Pubiic Arbitrator Signature Date
January 7, 2014 uate Of service (For HNRA Dispute Resolution office use only)
FINRA Dispute Resolution Arbitration Na 12-02153 Stipulated AvMfil Paoe 5 of S
Linda J. Baer Scott Mooney Laura H. Goldzung
ARBITRATION PANEL
Public Arbitrator, Presiding Chairperson Public Arbitrator Non-Public Arbitrator
i, the undersigned Arbitrator, do hereby afRnn that I am the individual described herein and who executed this instmment which is my award.
Concurring Arbitrators' Sionaturea
Linda J. Baer Public Arbttrator, Presiding Chairperson
Signature Data
PubNc Arbitral
Laura H. Goldzung Non-PubHc Arbitrator
Signature Date
Signature Date
January 7, 2014 Date of Senme (For FINRA Dispute Resolution office use only)
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