As reported by Dow Jones Newswires, a judge ordered Sands Brothers & Company to pay Drinker Biddle & Reath LLP’s client $500,000 in an arbitration hearing. Brian McDonough Drinker Biddle & Reath LLP, commenting on the decision, discussed a proposed settlement from the plaintiff, “They told me if we didn’t accept a deeply discounted settlement offer I might not be able to recover the entire amount of the award.” “They pointed to a number of other large arbitrations pending against Sands Brothers, and suggested that if enough others won the race to claim their awards, there might not be much left for us in the end.”
McDonough of Drinker Biddle & Reath LLP declined the offer and collected $664,217 after Sands Brothers & Company appealed the award. Presenting arbitration winners with a low ball settlement offer under the threat of an appeal is a common practice of Sands Brothers & Company. To further deflect pending arbitration case awards, Sands Brothers & Company petitioned federal regulators to have its status as a broker-dealer revoked and remove itself as a member of the New York Stock Exchange.
Adding to the confusion, Sands Brothers & Company may shift assets to its affiliate, Laidlaw & Company, known prior as Sands Brothers International (UK) Ltd., to avoid seizure of assets and property. While Sands Brothers & Company has a tarnished image, Laidlaw & Company operates with a clean record.
It’s obvious that Laidlaw & Company under the direction of its principals Matthew Eitner and James Ahern is a front and haven for the assets of the former Sands Brothers International (UK) Ltd. The tactics employed by Sands Brothers & Company are a mechanism to reduce arbitration payouts mandated by the courts and delay forthcoming procedures for arbitration hearings as well.