Landsman Saldinger Carroll Wins Landmark FINRA Award: Panel Finds Touchstone Securities Acted with “Deliberately Malicious Intent,” Awards Former Registered Executive $1.2 Million Including Punitive Damages and Orders Expungement of Defamatory U5 Disclosures
CHICAGO, Illinois – June 6, 2026 – Landsman Saldinger Carroll, PLLC announced that Partner Laurence M. Landsman won a significant FINRA arbitration award, securing an award for former Touchstone Securities executive Steven Seid of nearly $1.2 million in damages, including punitive damages, relating to his wrongful termination. Mr. Landsman also obtained the complete expungement of defamatory termination disclosures from Mr. Seid’s regulatory record.
In a June 3, 2026 Award, a majority of a three-arbitrator FINRA panel found in favor of Mr. Seid on claims arising from his December 2024 termination by Touchstone Securities, Inc. The panel awarded:
- $838,216 in compensatory damages for wrongful termination and tortious interference resulting in the loss of deferred compensation;
- $256,000 in lost compensation associated with Mr. Seid’s employment opportunity with T. Rowe Price;
- $100,000 in punitive damages; and
- Reimbursement of FINRA filing fees.
The panel also denied all counterclaims asserted by Touchstone Securities.
Also significantly, the panel recommended the complete expungement of Mr. Seid’s termination disclosures from his Form U5, and directed that the reason for termination be changed to “Voluntary,” and recommended the removal of all references to the underlying disclosure events from his CRD record.
In its explained decision, the majority concluded that Touchstone failed to conduct an adequate investigation before terminating Mr. Seid and further found that the firm had not demonstrated that he engaged in the alleged wrongdoing. The panel ultimately concluded that Touchstone’s actions toward Mr. Seid were carried out with “deliberately malicious intent.”
Mr. Seid devoted approximately fifteen years to Touchstone and its affiliated organizations, rising through the ranks from management trainee to senior executive. According to the Award, Touchstone initially sought to retain Mr. Seid after he received an offer from another firm but ultimately terminated him just days before his planned departure based on allegations he misappropriated trade secret information that the Panel determined were false and defamatory.
“The FINRA panel’s decision represents a complete vindication of Steven Seid,” said Laurence M. Landsman of Landsman Saldinger Carroll, PLLC, who represented Mr. Seid throughout the arbitration. “After a full evidentiary hearing, the panel rejected Touchstone’s allegations, dismissed every counterclaim, awarded substantial damages, assessed punitive damages for ‘deliberate malicious intent,’ and ordered the removal of the defamatory disclosures that had threatened Steven’s reputation and career.”
“The securities industry depends upon accurate regulatory disclosures. When a firm publishes false or misleading termination allegations, the consequences for a financial professional can be devastating. We are pleased that the panel carefully examined the evidence and reached the right result.”
The FINRA arbitration was captioned Steven Seid v. Touchstone Securities, Inc., FINRA Arbitration No. 25-00364. The Award was issued on June 3, 2026.
Landsman Saldinger Carroll, PLLC represents financial advisors, registered representatives, executives, and investors in FINRA arbitrations, employment disputes, expungement proceedings, and securities-related litigation nationwide.
Media Contact
Laurence M. Landsman
Landsman Saldinger Carroll, PLLC
Chicago, Illinois
landsman@lsclegal.com
www.lsclegal.com
