A former Morgan Stanley broker in Miami who sued the firm for wrongful termination and defamation has instead been ordered by an arbitration panel to fork over more than $1.9 million in compensatory damages and fees to the firm.
Candido Viyella, a 32-year industry veteran, had been with Morgan Stanley for 11 years before being fired in 2020 amid allegations that he participated in an outside investment that involved clients and that he had a beneficial ownership interest in, according to BrokerCheck. He refused to cooperate with the Financial Industry Regulatory Authority and was barred from the industry in 2021.
In his complaint against Morgan Stanley filed with Finra in February 2022, Viyella accused the firm of firing him and his two sons, Enrique Viyella and Daniel Viyella, in what he called a “coup” so that the firm could steer their clients to other advisors at the firm. He also claimed the firm tried to destroy his “professional reputation” after he was fired.
A three-member Finra arbitration panel did not buy it and ordered Viyella to pay $1,110,514.89 in compensatory damages, which represented the amount due on two promissory notes related to a recruiting loan issued to Viyella when he joined Morgan Stanley. He was also ordered to pay $752,332 in attorneys' fees and $55,455.84 in costs, as well as interest on the outstanding note balance.
Viyella’s attorneys, Scott Link of West Palm Beach, Fla.-based Link & Rockenbach and Plantation, Fla.-based David Weintraub, could not be reached for comment.
In the lawsuit, Viyella claimed that when he decided to retire and was nearly completed with transitioning his clients to Enrique, Morgan Stanley abruptly terminated his sons “in a carefully designed and transparent effort to poach their clients.” The firings, he said, made it easier for Morgan Stanley to steer [the Viyellas’] clients, many of whom are family members, friends and business colleagues, to other advisors at the firm. It also created an opportunity for the firm to charge those clients higher commissions, the suit said.
Viyella also accused the firm of attempting to destroy his reputation. “Morgan Stanley implemented its strategy by publishing multiple false and defamatory letters and statements to longstanding clients, friends, entities, members of the community, and [even] family members of Mr. Viyella,” the suit said.
Morgan Stanley fought and succeeded in having the lawsuit move out of the U.S. District Court, for the Southern District of Florida to Finra's dispute resolution system. A Miami judge moved the case to Finra in June 2022.
Candido, in his statement of claim, accused the firm of “wrongful termination; tortious interference with business relationships; conversion; promissory estoppel; and unjust enrichment.” He had sought “compensatory damages in excess of $10 million; punitive damages; and any relief that the panel deemed equitable.”
Morgan Stanley counterclaimed and accused Viyella of breach of the promissory notes he executed while at the firm, breach of contract and unjust enrichment, among other things. The firm sought $911,244.36, the amount of the notes plus interest accrued since Candido left the firm. Morgan Stanley also requested other costs and fees in connection collecting the notes, as well as attorneys’ fees.
The panel ordered Viyella to pay the firm a total of $1,918,302.73., plus interest on the outstanding note balance.
Morgan Stanley declined to comment.
Since November 2020, Viyella has been serving as president and CEO of Miami-based Earthview Capital, according to his LinkedIn page. The company, which is also listed as Earthview Management LLC on its Form ADV, lists Enrique as a co-owner and chief compliance officer. His LinkedIn page says he is a managing member. Several family members are also listed as co-owners on the Form ADV.