Former Osaic Unit FSC Securities Liable for $2.5M in Retaliation Case
FSC Securities Corp., a defunct broker-dealer now integrated into the Osaic network, has been ordered to pay $2.5 million in damages after losing an employment retaliation arbitration case. The claim was filed by Cynthia Ann Posipanko, a former branch compliance officer and office supervisor who worked with the firm from 2000 to 2021. Posipanko alleged constructive termination, whistleblower retaliation, and failure to supervise, citing an intolerable work environment created by her supervising advisor, James Ransom Potoka. A FINRA arbitration panel awarded her $1.47 million in compensatory damages, $750,000 in punitive damages, $250,000 in non-economic damages, and $37,000 in costs. Attorneys described the verdict as a significant message against firms that intimidate compliance professionals. Osaic, which recently secured over $2 billion in new capital from investors including Bain Capital, stated it believes the award is unsupported by facts and is evaluating legal options. The case highlights accountability issues within independent broker-dealer networks regarding supervision conflicts and workplace retaliation.
Wire timeline
Former Osaic Unit FSC Securities Liable for $2.5M in Retaliation Case
FSC Securities Corp., a defunct broker-dealer now integrated into the Osaic network, has been ordered to pay $2.5 million in damages after losing an employment retaliation arbitration case. The claim was filed by Cynthia Ann Posipanko, a former branch compliance officer and office supervisor who worked with the firm from 2000 to 2021. Posipanko alleged constructive termination, whistleblower retaliation, and failure to supervise, citing an intolerable work environment created by her supervising advisor, James Ransom Potoka. A FINRA arbitration panel awarded her $1.47 million in compensatory damages, $750,000 in punitive damages, $250,000 in non-economic damages, and $37,000 in costs. Attorneys described the verdict as a significant message against firms that intimidate compliance professionals. Osaic, which recently secured over $2 billion in new capital from investors including Bain Capital, stated it believes the award is unsupported by facts and is evaluating legal options. The case highlights accountability issues within independent broker-dealer networks regarding supervision conflicts and workplace retaliation.
InvestmentNews