A Wall Street arbitration panel has asked America’s biggest bank JP Morgan to pay a former employee millions in damages for terminating him over an expense-account submission linked to a business meeting at his home. The ex-employee named Ryan Bodner was registered with JPMorgan Securities and its affiliated entities for over 10 years. The Financial Industry Regulatory Authority (FINRA) issued the ruling. FINRA is the self-regulatory body that oversees US broker-dealers and runs the securities industry’s mandatory arbitration forum for disputes between firms and brokers.JP Morgan has been asked to pay $4 million damages along with a 10% annual interest from the date of service until the judgment is paid in full. The arbitrators also ordered JPMorgan to reimburse Bodner $800 in filing fees.Bodner’s lawyer Marc Seldin Rosen told New York Post that JPMorgan mischaracterized a February 2024 gathering the broker held as a “Super Bowl party” at an eatery when it was actually a pre-approved business meeting at his home involving a client and a prospective client. The disputed expense reportedly involved a platter that was delivered to Bodner’s house for the confab and ordered a few days before the big game. “They weren’t hiding anything,” the lawyer told Post, noting that the receipt showed delivery to Bodner’s home. “There was nothing nefarious at all. They submitted the documents showing that it was at his house.” Rosen alleged that JPMorgan used the $642.50 platter as a pretext to terminate his client, Ryan Bodner. JPMorgan had already decided to fire him before its deli-platter investigation was complete, claiming “the die was cast” and that internal staff moved “like vultures on a carcass” to carve up Bodner’s clients.
What JP Morgan said on the ruling
JPMorgan has strongly refuted claims made by Ryan Bodner’s lawyer. “We disagree with counsel’s characterizations of the facts and believe they are contrary to the witness testimony and evidence presented at the hearing,” a JPMorgan spokesperson told The Post. “In every workplace in America, submitting an inaccurate expense report is grounds for termination,” the JPMorgan spokesperson added. “When a company takes reasonable actions based on its investigation and submits a good faith U5 in compliance with the law, it should not be second-guessed and punished with a multi-million dollar award.”The bank has so far not publicly said if it plans to challenge the award in court.
What FINRA ruling said
After considering the pleadings, the testimony and evidence presented at the hearing, and any post-hearing submissions, the Panel has decided in full and final resolution of the issues submitted for determination as follows:1. Respondent is liable for and shall pay to Claimant the sum of $4,250,000.00 in compensatory damages.2. Respondent is liable for and shall pay to Claimant interest on the above-stated sum at the rate of 10% per annum from the date of service of this Award through and including the date the entire Award is paid in full.3. Respondent is liable for and shall pay to Claimant $800.00 to reimburse Claimant for the non-refundable portion of the filing fee previously paid to FINRA Dispute Resolution Services.4. The Panel recommends the expungement of the Reason for Termination and Termination Explanation in Section 3 of Brent Ryan Bodner’s (CRD Number 4187085) Form U5 filed by J.P. Morgan Securities LLC (CRD Number 79) on June 24, 2024 and maintained by the Central Registration Depository (“CRD”). The Reason for Termination shall be changed to “Voluntary” and the Termination Explanation should be deleted in its entirety and shall appear blank. This directive shall apply to all references to the Reason for Termination and Termination Explanation.The Panel further recommends the expungement of the explanation for the “If amending the Reason for Termination and/or termination explanation” on the Amended Form U5 filed by J.P. Morgan Securities LLC on June 25, 2024 and maintained by the CRD. The response to this prompt should be deleted in its entirety and shall appear blank. This directive shall apply to all references to the “If amending the Reason for Termination and/or termination explanation” section.The above recommendations are made with the understanding that the registration records are not automatically amended. Brent Ryan Bodner must obtain confirmation of this Award from a court of competent jurisdiction, before the CRD will execute the expungement directive, and must forward a copy of the Court Order to FINRA’s Credentialing, Registration, Education and Disclosure Department for the amendments to be incorporated into the Registration Records.5. Any and all claims for relief not specifically addressed herein, including any requests for punitive damages, are denied.