FINRA Arbitration Award: Florida Broker Held Liable For Additional Commissions And Fees Incurred By Investors

Brian Allan Cobb (CRD#: 6020022) is a licensed securities broker and registered investment adviser (RIA). Since March of 2012, Mr. Cobb has served as a registered representative for the brokerage firm Edward Jones in Port Orange, Florida. Based in St. Louis, Edward Jones is a national brokerage firm that is licensed to operate in 53 U.S. states and territories.

On October 7th, 2021, a FINRA arbitration panel based in Orlando ruled against Edward Jones broker Brian Allan Cobb in a complaint raised by a pair of investors (Case Number: 21-01028). In this article, our Miami investment fraud lawyer offers a more comprehensive review of the FINRA arbitration award.

FINRA Arbitration Dispute: Edward Jones Broker Brian Allan Cobb 

On April 21st, 2021, a pair of Florida investors signed and submitted the FINRA arbitration submission agreement for the proceedings involving Edward Jones broker Brian Allan Cobb. By doing so, parties initiate the FINRA arbitration process and agree to abide by the decision on the panel. In this case, the investors did not specify a cause of action against Mr. Cobb. However, they did assert that the underlying matter revolved around a dispute that arose when Mr. Cobb sold securities held after the investors’ father passed away. In their claim, they contend that they were required to pay additional, unnecessary commissions and fees because the broker omitted material information.

FINRA Arbitration Award: $18,556.90 in Compensation for Investors 

In reviewing the allegations, the Orlando, FL based FINRA arbitration ruled in favor of the claimants on certain matters—awarding them each $9278.45, for a total of $18,556.90 in financial compensation. The FINRA arbitrator provided a brief explanation along with the decision. In this explanation, the arbitrator emphasized that the financial award issued to the claimants was for commissions and related fees. Other matters were not adjudicated by the arbitration panel.

The arbitration found that Mr. Cobb did make a proactive effort to notify the investors that they had been given certain commission information in error. However, the FINRA arbitrator also determined that some fees “were not disclosed properly prior to the trades being entered” and that the respondent, Mr. Cobb of Edward Jones, was liable for that failure. While the FINRA arbitrator believes that Mr. Cobb’s omission was unintentional, it nonetheless denied the investors a chance to make a fully informed decision regarding certain securities transactions. 

Call Our Miami, FL FINRA Arbitration Lawyers for a Confidential Case Evaluation

At ​Carlson & Associates, P.A., our Florida securities fraud attorneys have the professional knowledge you can count on. We are committed to getting investors full and fair financial compensation for their losses. If you are preparing to file a FINRA arbitration claim, we can help. Call us now for a confidential assessment of your case. With an office in Miami, we provide representation to investors throughout Florida, including in West Palm Beach, Fort Lauderdale, and Miami Beach.

Resources:

finra.org/sites/default/files/aao_documents/21-01028.pdf

brokercheck.finra.org/individual/summary/6020022