Landsman Saldinger Carroll Secures $1.2M FINRA Award for Wrongfully Terminated Executive

A FINRA arbitration panel has awarded former Touchstone Securities executive Steven Seid nearly $1.2 million in damages, including punitive damages, after finding that the firm wrongfully terminated him with "deliberately malicious intent." The panel also ordered the complete expungement of defamatory termination disclosures from Seid's regulatory record, a significant outcome for the financial professional whose career was threatened by the false allegations.

The award, issued on June 3, 2026, in the case Steven Seid v. Touchstone Securities, Inc. (FINRA Arbitration No. 25-00364), includes $838,216 in compensatory damages for wrongful termination and tortious interference resulting in loss of deferred compensation, $256,000 in lost compensation from a thwarted employment opportunity with T. Rowe Price, $100,000 in punitive damages, and reimbursement of FINRA filing fees. The panel also denied all counterclaims asserted by Touchstone Securities.

According to the award, Seid had devoted approximately 15 years to Touchstone and its affiliates, rising from management trainee to senior executive. After receiving an offer from another firm, Touchstone initially sought to retain him but terminated him just days before his planned departure based on allegations that he misappropriated trade secret information. The panel determined those allegations were false and defamatory.

Laurence M. Landsman of Landsman Saldinger Carroll, PLLC, who represented Seid, stated: "The FINRA panel's decision represents a complete vindication of Steven Seid. After a full evidentiary hearing, the panel rejected Touchstone's allegations, dismissed every counterclaim, awarded substantial damages, assessed punitive damages for 'deliberate malicious intent,' and ordered the removal of the defamatory disclosures that had threatened Steven's reputation and career."

In its explained decision, the majority concluded that Touchstone failed to conduct an adequate investigation before terminating Seid and further found that the firm had not demonstrated he engaged in the alleged wrongdoing. The panel also recommended the complete expungement of Seid's termination disclosures from his Form U5, directed that the reason for termination be changed to "Voluntary," and recommended the removal of all references to the underlying disclosure events from his CRD record.

"The securities industry depends upon accurate regulatory disclosures. When a firm publishes false or misleading termination allegations, the consequences for a financial professional can be devastating," Landsman added. "We are pleased that the panel carefully examined the evidence and reached the right result."

The case underscores the importance of thorough investigations before terminating employees in the securities industry and the severe repercussions for firms that act with malicious intent. The expungement of Seid's record is particularly notable, as erroneous disclosures can hinder a professional's ability to find future employment and damage their reputation irreparably.