Sands Brothers & Co clients are fearing that the company could ignore the streams of arbitration awards currently pending. The company is reportedly advising some of the clients to settle for deeply discounted settlements because the firm may run out of money to pay the awards as required in the arbitration.
Most customers who have pending awards term the firm’s resolution to appeal the awards in court through their lawyers as a delaying tactic. These speculations were further fueled by the firm’s application to withdraw its membership from the New York Stock Exchange. Once a company withdraws as a member of the NYSE, it is no longer liable to punishments from the Securities Exchange Commission, something the clients fear will jeopardize their chances of getting their awards.
In addition, most people fear that the firm will move its assets to another dealer, Laidlaw & Co to avoid paying the awards. Laidlaw recently changed its name from Sand Brothers International Ltd meaning it’s closely related with Sand Brothers & Co. The company provides investment banking and wealth management services to clients from the United States and the United Kingdom. The company is led by Mathew Eitner and James Ahern. Mathew is the Chief Executive Officer while James is the Head of Capital Markets.
Such incidences are not a surprise to many who know about the firm’s relationship with the Sands Brothers & Co. Apparently, most former employees of Sands Brothers & Co have their brokerage registrations at Laidlaw & Company. There is a possibility that Laidlaw could be the new Sands Brothers. However, the company’s attorney has denied the speculations asserting that Laidlaw is an independent brokerage firm that has been operating for years in USA and UK.