Apparently winning money against a brokerage firm in arbitration is no guarantee of actually receiving the money. Attorney Brian McDonough won $664,217 from Sand Brothers for his client, however, with multiple arbitrations pending against the brokerage firm, it was possible that his client wouldn’t get his full award. Fortunately, McDonough’s client eventually received all of his money, but others might not since Sands Brothers is withdrawing as a broker-dealer from the NASD, after having already withdrawn as a member of the New York Stock Exchange. Sands Brothers continue to appeal awards and offer settlements, knowing that the NASD and NYSE can’t suspend them. Individuals who have won awards also fear that Martin and Steven Sands are moving their remaining assets to Laidlaw & Company, where both hold brokerage registrations.
Laidlaw & Company offers investment banking, investment advice and brokerage services to wealthy individuals and private and public institutions. The U.K. firm occupies the same Park Avenue address as Sands Brothers, which is not unusual since Laidlaw & Company was formerly named Sands Brothers International Ltd., although the firms operated as separate units for some time.
Laidlaw & Company has its own problems; the firm is being sued by former client Relmada Therapeutics, which claims that Laidlaw & Company and principles Matthew Eitner, CEO and James Ahern, Managing Partner and Head of Capital Markets disseminated false and misleading proxy materials. Relmada claims that Laidlaw & Co. put out the false information because Matthew Eitner and James Ahern wanted to take control the drug company.