I found it really interesting lately when reading about a well-known investment banking firm, Laidlaw & Company, to discover their history of failing to comply with Federal financial regulations stemming from a number of customer complaints. One such complaint was filed by a specialty pharmaceutical company, Relmada Therapeutics, Inc. The complaint involved an alleged attempt by Laidlaw to effectively take over control of Relmada.
So, on Dec. 11, 2015, a Temporary Restraining Order (TRO) was issued against Laidlaw & Co. by the U.S. Federal Court. The TRO also named James Ahern and Matthew Eitner, who are Laidlaw principals. There was an associated injunction for the protection of Relmada to stop Laidlaw from continuing to disseminate statements that are alleged to be false and misleading.
In addition, I discovered a Cease and Desist order against Laidlaw issued by the Connecticut Dept of Banking in May. It was on the department’s website and it involved some rather excessive fines.
Now, even though Ahearn and Eitner weren’t involved in these particular complaints, another Laidlaw executive, Leonard V. Gallick, Jr, is the subject of at least seven customer complaints. Some of the complaints were filed when Gallick was with Laidlaw, while others involved other firms he worked for.
After reading all the complaints and TRO info made me wonder if Laidlaw really does have a total disregard for the financial regulations? On the other hand, maybe they’re just misunderstood. Some say that you can’t get as big as they are without having some people target you. After all, customers did get judgments against Gallick’s former firms, Josephthal & Company, and J.P. Turner & Company, as well as Laidlaw to the tune of $670k. And, in the one still pending against his former employer, Gunnallen Financial, the customer is asking for $8 million.