Fired broker wins $5.2 million arbitration

One of RBC’s American subsidiaries has been ordered to pay a former broker more than $5 million, after dismissing him on “thin” evidence of wrong-doing.

A FINRA arbitration panel ruled that Mel H. Schonhorst had been wrongfully terminated by RBC Dain Rauscher and ordered the brokerage to pay him $4.4 million in lost earnings, as well as nearly $800,000 in other compensation.

But the panel stopped short of Schonhorst’s request that his termination filing be expunged from the Central Registration Depository on the grounds that he was, in fact, being investigated by the U.S. Attorney General.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.