Cincinnati Stockbroker Wins Libel Ruling Against Former Employer: Claimed He Was Defamed In False Regulatory Filing

CINCINNATI (TDB) -- A brokerage company that claims it is among the best places to work in Ohio just got socked for mistreating a former worker. Carlos Reisen Jr. said his ex-bosses furnished false information to the Financial Industry Regulatory Authority (FINRA) on a termination notice. A federal judge agrees the form was filed with reckless disregard for the truth and has upheld a $516,000 damage award. U.S. District Judge Susan Dlott sided with an arbitration panel that said the "language . . . associated with Mr. Reisen's termination was defamatory." Reisen had been the Cincinnati branch manager for Hilliard Lyons, a Louisville brokerage that touts itself as "the best place to work in four states." The company has 70 offices in 13 states.

Hilliard Lyons' reckless conduct dates to April 23, 2008 when it reported to FINRA that Reisen had been sacked for disloyalty: "Mr. Risen (sic) was involuntarily terminated for violating his duty of loyalty to the company. As a manager, Mr. Reisen knowingly facilitated the departure of two financial consultants who were hired by a competitor while himself interviewing with the competitor. His termination was not the result of any sales practice related reasons." The statement -- which turned out to be untrue -- was filed on a Form U5/Termination Notice for Securities Industry Registration.

Reisen initially sought $1.8 million in compensatory damages and $$3.7 million in punitive damages. Hilliard Lyons contended that it had not been reckless in filing the termination notice, and said there was no defamation. It also contended the statement was privileged because it was made in the context of a judicial or quasi-judicial proceeding. Judge Dlott saw otherwise:

"Defamatory statements made with reckless disregard for the truth are not entitled to a qualified privilege under Ohio law . . . The [arbitration] Panel held that the 'language associated with Mr. Reisen's termination was defamatory' and that the 'preparation of the U% was negligent and reckless.' Even assuming that the Panel accorded qualified privilege to the Form U5 statements, that privilege was defeated as a matter of law by the factual finding that Hilliard Lyons preparation of the For U5 was reckless."

The filing was changed to say he was involuntarily terminated due to a management conflict. The disloyalty claim was expunged. The case is 1:09-cv-00535 in U.S. District Court for the Southern District of Ohio. Attorney William K. Flynn of Strauss & Troy represented Reisen.

Ohio GOP State Rep. Candidate Eric Minamyer: Sues Other Republicans For Defamation

CINCINNATI (TDB) -- A candidate for the Ohio House in the March GOP primary is suing two suburban Cincinnati township trustees for defamation because they said he has "anger management" issues. Eric Minamyer, a Naval Reserve captain, is a township trustee himself and ran for Congress in the 2005 special election that sent Jean Schmidt to Washington. Now he hopes to represent the 35th District, which is being vacated by State Rep. Michele Schneider due to term limits. The lawsuit is Case No. A 07 08291 in Hamilton County.

In 2005, Minamyer questioned Democratic Iraq War veteran Paul Hackett's service record when Hackett ran for Congress. The following excerpt from a Bizzyblog post has some of the details about what took place:

[Minamyer] "raised the issue of Paul Hackett’s combat record, which would never have come up without Hackett’s 'serve and fight' TV-ad reference. Minamyer took a lot of heat for asking legitimate questions (as if asking questions about a soldier’s record is a crime, when the soldier involved has positioned his military service as the principal reason why he should be elected)."

Apparently, Minamyer can dish it out. The lawsuit makes it appear that he can't take it. And political insiders now might be wondering how Minamyer helped himself in the House race by filing the defamation lawsuit that seeks punitive damages from Tom Weidman and Cliff W. Bishop, who are trustees in Sycamore Township. Bishop is a former Hamilton County Common Pleas Court bailiff and is a member of the Hamilton County Republican Club board of directors. That post makes him a key insider in the county's GOP establishment. Minamyer said Bishop and Weidman made remarks about his service as a special deputy sheriff, and "intended to do harm to plaintiff financially by depriving him of pay as a special deputy, but also in his profession as an attorney and elected official."

Minamyer says Bishop and Weidman should pay financial damages for his embarrassment, mental anguish and emotional distress.

The trustee, in a response filed to the lawsuit, said they have immunity as elected officials and were not malicious. They said Minamyer is a public figure.

. . ."Plaintiff had no reasonable expectation of privacy and that any statements made by the defendant were true and/or constitutionally protected opinion and/or were part of a public controversy within the context of which the plain was a public figure, thereby barring plaintiff from any recovery against these defendants on all or part of his claims for relief."

So far, there has been no action on the lawsuit in Hamilton County Common Pleas Court. Three judges have stepped aside because they know the parties in the dispute.