FINRA Witnesses Comments on Dispute Between Broker and Former Employee

FINRA Expert WitnessThis case involves arbitration before FINRA in which a broker-dealer was sued by a former employee of the company. The employee alleged that he was not paid a bonus because of ulterior motives of the company, while the company alleged that the employee was not paid due to the nature of the trades. The employee was trading with a number of big banks, making multiple trades in a given day in US treasuries, where he would markup the trade to many times its normal value. The employee claimed the customer agreed because of the dedicated attention given to the account and that the size of treasuries were in “Odd Lots” amounts – justifying the price.

Question(s) For Expert Witness

  • 1. Please discuss your background in trading US Treasury securities.
  • 2. Are you familiar with the business practices and potential warning signs when trading these securities?
  • 3. Are you familiar with "Odd Lots" as a concept?
  • 4. Have you ever served as an expert witness and testified on a case similar to the one described above?

Expert Witness Response E-015293

Expert-ID: E-015293

I analyzed stock trade data extensively for 3 years while working at FINRA and the SEC. I have worked on about 5 or 6 cases dealer with broker-dealer operations while working at a financial services research firm. I am quite familiar with the term “odd lots” and know how to bring myself up to current standards regarding FINRA rules for trading U.S. Treasury Securities. However, I have not testified in any cases regarding U.S. Treasury Security trading to date.


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