JP Morgan Loses $39.7M Arbitration Against Barred Broker

By Melanie Waddell

News January 03, 2025 at 03:43 PM

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A Financial Industry Regulatory Authority panel has denied J.P. Morgan Securities' request for $39.7 million in damages against a former broker, Edward Turley, whose customer complaints resulted in JP Morgan paying millions in damages.

The FINRA panel ruled on Dec. 27 that JP Morgan must pay Turley $520,000 in attorneys' fees and other costs.

JP Morgan claimed that Turley, a former financial advisor with the firm, "unjustly enriched himself by brazenly lying" and breaching its policies over several years.

JP Morgan declined to comment. The FINRA panel did not detail the reason for denying the firm's claims.

Turley, who was discharged by JP Morgan after several clients initiated FINRA arbitrations against him alleging trading violations, was barred by FINRA in 2022 after refusing to appear for testimony during the self-regulatory organization's investigation into one of the arbitrations.

Without admitting or denying FINRA's findings at the time, Turley signed a FINRA letter of acceptance, waiver and consent in which he agreed to be barred from associating with any FINRA member in all capacities.

Turley worked for JP Morgan from 2009 to 2021, according to BrokerCheck.

In 2020, JP Morgan paid more than $11.5 million to settle a customer complaint against Turley that asserted multiple infractions, including breach of contract and warranties; promissory estoppel; violation of Consumer Protection and Deceptive Trade Practices Act; violation of state securities laws; statutory fraud; and breach of fiduciary duty.

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