Edwin A. Barkel

Representative Matters

• Defended a national broker-dealer in a FINRA arbitration filed by an extremely wealthy individual through his offshore creditor protection trust and its asset protection sub-entities. The claimants sought to recover $650,000 related to a bad loan that one of the sub-entities made to an approved OBA insurance agency owned by an independent contractor registered representative. The claimants alleged that the broker-dealer failed to supervise the loan transaction between the asset protection entity and the OBA entity. The asset protection trust and its sub-entities tried to bootstrap “customer status” based upon a variable annuity transaction the wealthy individual directed between yet another asset protection trust (not a claimant) and the firm several years prior.
   
• Proved that the trustee, the trust and the sub-entities did not have an agreement to arbitrate, did not have an account, contracted only with the outside OBA entity not associated with the firm and the OBA insurance activity was not the business of the broker-dealer. As a result, claimants did not meet the very broad definition of a “customer” eligible to compel arbitration under FINRA Rule 12200 and FINRA therefore lacked jurisdiction to arbitrate the case. We also argued on the merits that, under FINRA Rule 12504(a)(6)(B), the firm was not involved in the transaction at issue. The arbitrators agreed with both arguments, dismissed the claims and ordered claimants to pay the forum fees.
   
• Represented a national broker-dealer in a dispute brought by a family group of investors in an arbitration in the FINRA Dispute Resolution forum. The claimants sought $770,000 plus attorney fees and punitive damages. The investment activity spanned from 2007 to 2015. Claimants alleged that the investment portfolio was unsuitable, did not meet their investment objectives and the firm failed to supervise the broker.  Through extensive discovery we were able to prove that members of the investors group concurrently engaged in identical investment strategies in self-directed accounts at other financial services firms and they engaged in similar investment activity after leaving Stifel. Through careful cross examination we were able to impeach all members of the investment group and also prove that one member of the investment group misrepresented profits and losses to other members of the group in order to continue the trading strategy he sought. The arbitrators rendered a full defense award to our client including an unusual order requiring the investor group to share half of the FINRA Arbitration Forum fees.
   
• Represented a national broker-dealer in two interrelated matters arising out of the hiring and subsequent termination of a registered representative. In the first case, the former employer, sued our client and the employee in state court alleging the theft of trade secrets, theft of confidential data protected under of Regulation S.P., tortious interference of business opportunities and other claims. The plaintiffs sought $10,000,000 plus attorney fees and punitive damages. The plaintiff’s case, counter claims and defenses involved complex issues related to standing, violations of securities law and claims for recovery barred as a matter of law and public policy. The matter was settled favorably for our client and the claims were dismissed with prejudice.   The second claim was brought by the terminated broker.  His claims involved complex Whistle blower issues, damages in excess of $500,000 and avoidance of a $850,000 promissory note balance. Our client filed a counterclaim seeking repayment of the promissory note. The matter was settled favorably with a recovery on the promissory note and without the payment of damages by our client.
   
• Represented a national insurance company and its employees in a dispute brought by a couple seeking guaranteed annual income payments from a life insurance policy totaling $93,750 “for life” over a mortality period ranging from 25-40 years. The actuarial value of the benefit sought was $2,500,000 to $4,000,000. Plaintiffs also sought to hold individual employees liable for the life-time income stream and to permanently impact the employees’ ability to work in the financial services industry. The litigation was hotly disputed requiring multiple motions to compel discovery.  We were able to negotiate a settlement in which no compensatory damages were paid by the company or the employees.  Further, we were able to get the claims expunged from the records of the individuals registered with the Financial Industry Regulatory Authority. 

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Presentations

• Annuities 101: Everything You Don't Understand, ABA TIPS Midwinter Conference, 2019
• New and Emerging Trends in Cyber, Professional Liability Underwriting Society's Southwest Chapter, Southwest Chapter Cyber Seminar, 2018
• Elder Financial Abuse and Exploitation (Protecting Clients and Avoiding Liability), NEXT Financial Group Inc., 2015 National Educational Conference
• On the Record Interviews, Woodbury Investments Regional Manager Meeting, 2011
• FINRA Arbitration Update, Securities Regulation Section of the State Bar of Arizona, 2011
• Hot Topics for In-House Counsel in Evolving Regulatory Landscape, Lewis and Roca Year-End CLE for In-House Counsel, 2011
• Current Issues In Securities Arbitration, Scottsdale Insurance Underwriters, 2009
• Securities Arbitration, Regulatory Issues and Claim avoidance, United Planners Annual Partners Conference, 2009
• Business Succession Planning, FPA of Greater Phoenix, 2008
• Business Succession Planning, Society of Financial Service Professionals, 2006
• Business Succession Planning, Carillon Investments National Conference, 2004
• Investment Advisor Regulatory Update, FPA of Greater Phoenix, 2004
• Annual Firm Element Compliance Program, Wachovia Securities Phoenix Complex, 2003
• Suitability Conference, National Regulatory Service, 2002
• Annual Firm Element Compliance Program, Wachovia Securities Phoenix Complex, 2002 

Distinctions

The Best Lawyers in America - Woodward/White, Aiken, S.C. - Commercial Litigation and Securities Litigation, 2013-2021
Martindale-Hubbell - "AV/Preeminent Attorney" Rating

Other Info