The claimants became customers of the registered representative and his affiliated broker-dealer in the year 2000. Shortly afterward, the claimants began investing with a local real-estate developer, whom they met through the representative. Although the representative terminated his relationship with the claimants in 2009, the claimants continued investing with the developer. Years later, the claimants filed an arbitration claim against the representative and the broker-dealers with which he had been affiliated from 2000 until 2009, alleging to have lost an unspecified amount of the $1.7 million they had invested with the developer.
Anthony Ostlund successfully moved to have the claims dismissed before a hearing on the merits. Although such motions are generally prohibited in FINRA arbitrations, Anthony Ostlund argued that dismissal was appropriate because the registered representative and his broker-dealer were not associated with the accounts, securities, or conduct at issue. The arbitration panel agreed and dismissed all claims in full and on the merits.