It took more than eight years, but an arbitration panel has awarded Morgan Stanley $380,000 for repayment of a promissory note from an advisor who left the wirehouse nearly a decade ago.

The long arbitration process was highly unusual, attorneys say. "FINRA arbitration proceedings are supposed to be expedited compared to similar proceedings in the court system," says Jonathan Kurta, an attorney with New York law firm Fitapelli Kurta who was not involved in this case.


It was not clear from records why it took so long for the case to be settled. Normally, the arbitration process lasts about nine to 12 months.

Delays can be incurred if there is a change of arbitrators on the panel, issues in the discovery process or if there was a tentative settlement.

A Morgan Stanley spokeswoman declined to comment, as did Joel Wertman, an attorney representing the advisor, David Netkin.

Netkin worked at the wirehouse from May 2004 to November 2005, according to his BrokerCheck record; since his departure from Morgan, he has been working at Woodstock Financial Group in Woodstock, Ga.

Morgan filed its statement of claim in 2007, seeking damages from Netkin for breach of contract and breach of promissory note, FINRA records show.


According to the records there were three pre-hearing sessions in 2007, 2008 and 2010. There were also five pre-hearing sessions with an arbitration panel between 2010 and 2014.

The multiple sessions cost nearly $7,000 in fees -- an expense that was split between the two parties.

In August of last year, Netkin and Morgan notified the panel that they had settled the matter; the two submitted a revised agreement in January.

The panel accepted the award earlier this month, ruling that Netkin would pay Morgan $380,000 "as part of an agreed upon payment schedule in accordance with a confidential settlement agreement between the parties."

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