William Sprouse reports the outcome of an arbitrated insider data breach case where a departing employee allegedly took client data with him to his new employer. I don’t think this case was ever covered on this site before, but Law360 had reported the lawsuit back in 2012.
Sprouse reports:
A FINRA arbitration panel ruled a Wells Fargo adviser and the wirehouse liable for $1.1 million in damages over allegations he stole client data from UBS.
The arbitration panel’s ruling resolves a long-running dispute over whether or not David Kinnear broke trade secrets and other fraud and abuse laws, and whether UBS retaliated by making false and malicious statements about their former employee.
UBS claimed that Kinnear had stolen confidential data on thousands of their clients—along with other proprietary information—in the months leading up to his resignation from the firm, according to a copy of the award.
Read more on OnWallStreet.
FINRA’s summary of a disciplinary action against Kinnear in connection with the complaint is included in a June, 2015 report:
David Stephen Kinnear (CRD #2769750, Chicago, Illinois) submitted an AWC in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for five business days. Without admitting or denying the findings, Kinnear consented to the sanctions and to the entry of findings that he transferred customer account information onto personal thumb drives and sent these thumb drives to customers without his member firm’s authorization prior to his voluntarily resignation from the firm and his move to another member firm. The findings stated that Kinnear did not have permission to transfer and send the firm’s customer information for the purpose of recapturing it after he joined the other firm. In taking these actions, Kinnear violated the firm’s policies and procedures.
The suspension was in effect from May 4, 2015, through May 8, 2015. (FINRA Case #2012031496901)