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DEFERRED COMPENSATION CLAIMS FOR FINANCIAL ADVISORS

Did your broker-dealer firm withhold your deferred compensation when you left the firm? You may be entitled to compensation.  Contact us today.

We currently represent over 150 financial advisors in private arbitrations against their former broker-dealer employers pursuing claims for their deferred compensation.

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Did Your Broker-Dealer Firm Withhold Your Deferred Compensation Upon The Termination Of Your Employment? 

We May Be Able to Assist with Claims for Compensation.

We represent over one hundred and fifty financial advisors whose deferred compensation was withheld by their broker-dealer firm upon the termination of their employment.

In the claims we are pursuing for our advisor clients, we argued that the deferred compensation was earned by the advisors pursuant to their “grid compensation” and was improperly withheld upon their departure from their firm. On behalf of our clients, we are seeking the repayment of such deferred compensation.
  • Did you participate in a deferred compensation plan with your former employer?
  • Was the money contributed into the deferred compensation plan withheld from your earned “grid” compensation?
  • Were you told that your deferred compensation would be forfeited if you left your broker-dealer firm to join a new firm?
  • If the answers to the prior three questions are “yes,” please contact us for a free, no-obligation evaluation of potential claims for compensation.

Latest News Regarding Deferred Compensation Claims

Ex-Morgan Stanley advisors' $3M win could open floodgates to deferred comp claims
To a group of seven ex-Morgan Stanley advisors, a recent FINRA arbitration ruling means they're one step closer to recouping more than $1.5 million in deferred compensation they say they're still owed after leaving for other firms.
Link to the article published by Financial Planning
Ex-Morgan Stanley Brokers Represented by Rosca ScarlatoWin $3 Million in Deferred Compensation Claim
Seven former Morgan Stanley brokers have won more than $3 million over allegations that the firm improperly withheld their deferred compensation when they moved to competitors, according to an arbitration award finalized on Friday.
Link to the article published by Advisor Hub
Morgan Stanley Loses $3 Million Deferred-Comp Case to Advisors Represented by Rosca Scarlato
Morgan Stanley must pay more than $3 million to a group of financial advisors who accused the company of wrongfully withholding their deferred compensation when they left to work elsewhere, an arbitration panel has ruled.
Link to the article published by Barron's
Finra Panel Rules Morgan Stanley Must Pay $3M To Ex-Brokers Represented by Rosca Scarlato For Deferred Comp Claims
An arbitration panel has ordered Morgan Stanley to pay more than $3 million in back pay, fees and interest to seven of its ex-advisors in the Chicago area who said the company cheated them out of their deferred compensation when they left the firm for greener pastures
Link to the article published by FA Magazine
Morgan Stanley to Pay $3M in FINRA Arbitration Over Deferred Comp to Advisors Represented by Rosca Scarlato
A FINRA arbitration panel has ruled that Morgan Stanley must pay more than $3 million in compensatory damages, attorney’s fees, interest and case expenses to a number of former advisors who say the firm inappropriately withheld deferred compensation payments after they left employment.
Link to the article posted by Think Advisor
Morgan Stanley to Pay $3M+ in Deferred Comp Dispute to Advisors Represented by Rosca Scarlato
The wirehouse owes a total of more than $3 million to seven advisors whose deferred compensation was withheld when they left the firm, a Finra arbitration panel has ruled.
Link to the article published by Financial Advisor IQ
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Faq’s

We are currently pursuing claims on behalf of financial advisors whose deferred compensation was withheld by their broker-dealer firm upon the termination of their employment. In our pending cases, we argued that such compensation was earned by the advisors pursuant to their “grid compensation” and their employer was not entitled to withhold it from them once their affiliation ended. Different advisors may be in different legal situations. To evaluate an advisor’s specific legal situation and options, we need to talk to that advisor and learn more about his or her factual situation. Please contact us for a free, no-obligation discussion about your options.
The ERISA rules do not allow sponsors of certain types of deferred compensation plans to require members in such plans to forfeit their interest in the plan upon termination of employment. We believe that certain deferred compensation plans organized by a number of brokerage firms may be subject to such ERISA rules in certain situations and may thus be prohibited from forcing advisors to forfeit their compensation upon leaving the brokerage firm.
We typically file such cases in FINRA arbitration.
FINRA arbitrations typically take 15-18 months to resolve, although each case is different and past performance is not indicative of future results.

No. This is an employment dispute, not a customer dispute, and does not show up on the Brokercheck report.

No. We are filing individual claims only on behalf of those advisors with whom we enter into an individual attorney-client relationship pursuant to a written client-lawyer agreement.

No. We work on a contingency fee basis. We advance the case costs, do not require any money down for our fees or expenses, and only get paid for fees and expenses if and when we recover money for our clients. The contingency fee (percentage) is calculated based on the net recovery, before the case expenses are deducted (reimbursed).

No. We will not ask for any fees or expenses if the case is not successful. In a small number of jurisdictions (states) in the country, the client is required to be ultimately responsible for case expenses.

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Phone:

888-998-0520

IMPORTANT LEGAL DISCLAIMERS
*CONTINGENCY FEE REPRESENTATION – NO RECOVERY, NO FEES:
In most cases and jurisdictions, the Rosca Scaralto LLC law firm offers contingency fee representation, meaning the attorney’s fees that the clients pay are a percentage of the recovery before case expenses advanced by the law firm are reimbursed; if there is no recovery, then the clients are not responsible for paying any attorney’s fees or case costs. Some jurisdictions require that clients be ultimately responsible for case expenses. To learn more about our contingency fee representation for clients, contact our firm.

*NATIONWIDE REPRESENTATION
The Rosca Scarlato law firm represents clients nationwide in arbitration and litigation matters. That means we can help you regardless of where you live. Our various attorneys are admitted to practice law in Pennsylvania, New York, New Jersey, Texas, Ohio, Florida, and District of Columbia only, respectively, as stated on their respective pages on the rscounsel.law website linked above, and depending on each state and type of case on behalf of clients may affiliate with local co-counsel for pro hac vice admission, at no additional cost to clients.

*ATTORNEY ADVERTISING; NO LEGAL ADVICE
This site contains attorney advertising / advertising material. Comments quoted in the section immediately above, made by a judge in a particular case, are not an endorsement of any Rosca Scarlato attorney’s legal skill or ability. The responsible attorneys for the content of this website are Paul Scarlato, Esq. and Alan Rosca, Esq., unless otherwise specifically indicated. Paul Scarlato’s office is in Philadelphia area, as detailed on his page on this website. Alan Rosca’s office address is in the Cleveland, Ohio area, as detailed on his page on this website. Each case is different, and prior results do not guarantee or indicate a similar outcome in any future case. The information you review at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your case. We do not enter into attorney-client relationship through this website, or through your communication with us on this website. By continuing to browse this website you agree that an attorney-client relationship with Rosca Scarlato is formed only upon the execution by both parties of an attorney-client agreement. Any investigation referenced on this website is independent and conducted by the Rosca Scarlato law firm privately. Any information or statements contained in this website, regarding pending or past investigations, is derived from public records and should be viewed as allegations, not statements of facts, unless specifically indicated otherwise. Please check the “Legal Disclaimer” page for important disclaimers.

For international clients where part or all of the recovery must be collected from defendants located in other countries, we typically require a down payment for case costs and part of our fees, and offer mixed fee agreements that consist in a reduced fee & costs payable upfront and a reduced contingency fee if and when there is a recovery.

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BritTany May

Attorney

Brittany joined the firm in January 2022.  She is a second-generation Cleveland attorney.  Brittany worked in the legal field in various positions before attending law school.  She has experience in bankruptcy, social security, general civil litigation, corporate and business litigation, real estate, and corporate transactions.

A native Clevelander, Brittany attended Laurel School for Girls in Shaker Heights, Ohio before obtaining a BS in business management from University of Phoenix.  She graduated magna cum laude from Cleveland-Marshall College of Law in May 2020 and was in the first group of bar examinees to take the “online” bar exam.

Brittany is an avid Cleveland Browns and Indians fan.  She was an internationally ranked ice dancer and competed in the Ukraine and Czech Republic before retiring from the sport.  She was also a runway and print model and was featured in an Ohio Lottery Powerball commercial.  She brings with her a vast range of skills and knowledge gained from her unique life experiences.

Paul Scarlato

Attorney

Paul Scarlato has over thirty years of experience litigating complex commercial litigation cases in courts and arbitration forums across the country. Paul has an undergraduate degree in accounting and prior to entering the litigation practice was part of the tax department of a “Big Four” accounting firm where he provided a broad range of services to high-net-worth individuals, and large business clients in a variety of industries.

Paul’s legal practice includes ERISA-related litigation and other litigation on behalf of agents arising out of improperly withheld compensation that was owed to them by financial and insurance industry companies, including disputes related to improperly withheld sales commissions and other deferred compensation.

Paul has extensive experience with a broad range of class actions and FINRA arbitration matters, having served as counsel in high-stakes cases, including, among others, the Deutsche Mortgage Pass-Through Securities Litigation ($32.5 million settlement for purchasers of mortgage backed securities); Lehman Brothers Equity/Debt Securities Litigation (settlements over $500 million for Lehman debt and equity purchasers); Velti plc Securities Litigation (partial settlement of $9.5 million for Velti stock purchasers); Hewlett Packard Securities Litigation ($57 million settlement for HP common stock purchasers); Compellent Technologies Shareholder Litigation (settlement included key deal improvements; elimination of “poison pill” and standstill agreement with potential future bidders, and a reduction of termination fee); and the Boeing Company Derivative Litigation (settlement included $29 million to establish and innovate ethics and compliance programs following a series of government scandals involving Boeing).

Paul is a graduate of Moravian College and the Widener University School of Law.  Following graduation, Paul served as Law Clerk to Judge Nelson Diaz of the Court of Common Pleas of Philadelphia County, and thereafter as Law Clerk, Justice James McDermott of the Pennsylvania Supreme Court. Paul is licensed to Practice in PA and NJ.

Alan Rosca

Alan Rosca

Attorney

Alan Rosca is a seasoned securities lawyer and an adjunct professor of securities regulation who frequently speaks at legal conferences on topics ranging from securities rules and regulations to cryptocurrencies and attorney ethics.

Alan has a strong background in finance and securities. Prior to becoming a lawyer, Alan worked in the financial industry, for a New York-based financial conglomerate that included brokerage, investment research, and one of the first electronic marketplaces for securities. He is married to a former investment banker who worked in M&A for a different Wall Street firm. As a former financial industry insider, Alan has a deep understanding of the compliance, regulatory, and compensation–related issues that financial advisors must deal with on a regular basis.

Alan’s legal practice includes ERISA-related litigation and other litigation on behalf of agents arising out of improperly-withheld compensation that was owed to them by financial and insurance industry companies, including disputes related to improperly-withheld sales commissions and other deferred compensation. Alan has represented in various capacities thousands of agents in compensation-related disputes having to do with unpaid commissions, bonuses, or other deferred compensation, by insurance and financial industry companies.

Alan is an experienced litigator who has handled complex financial and commercial matters. He has extensive experience with class actions and FINRA arbitration matters. He also represents plaintiffs in consumer and wage-and-hour disputes.

Alan received his Juris Doctor degree summa cum laude from the Cleveland-Marshall College of Law in May 2008. While in law school he served as a Managing Editor of the Cleveland State Law Review, received the Dean’s (full) scholarship for the entire Juris Doctor program, was on the Dean’s List, and won the “Best Oralist” award in the Jessup Moot Court competition, Pacific Region. He passed the Ohio Bar exam in top 1%, with the highest grade in the state to the multi-state (federal law) section.

He is licensed to practice law in the Ohio state courts only, the Northern and Southern Districts of Ohio, and other federal courts. Alan works in the firm’s Cleveland, Ohio office.

He is a member of the Cleveland Metropolitan Bar Association, the Estate Planning Council of Cleveland, and the Cleveland Diplomatic Corps, among other professional organizations.

He holds a Master of Business Administration degree from Baldwin-Wallace College, Ohio.

Alan often teaches securities regulation at Cleveland-Marshall College of Law, his alma mater, and has done so for nearly a decade.

In May 2021, Alan was elected to a three-year term as a Barrister to the William K. Thomas American Inn of Court.