Award FINRA Dispute Resolution

In the Matter of the Arbitration Between:

Claimant Arthur Storniola

vs.

Case Number: 14-03666

Respondent M.D. Sass Securities, L.L.C.

Hearing Site: New York, New York

Nature of the Dispute: Customer vs. Member

This case was decided by an all-public panel.

REPRESENTATION OF PARTIES

For Claimant Arthur Storniola: Kevin D. Galbraith, Esq., The Law Office of Kevin Galbraith, New York, New York.

For Respondent M.D. Sass Securities, L.L.C: Barry S. Pollack, Esq., Pollack Solomon Duffy LLP, Boston, Massachusetts.

CASE INFORMATION

Statement of Claim filed on or about: December 9, 2014. Opposition to Motion to Dismiss filed on or about: May 28, 2015. Claimant signed the Submission Agreement: December 9, 2014.

Statement of Answer filed by Respondent on or about: January 29, 2015. Motion to Dismiss filed on or about: May 1, 2015. Reply in Support of Motion to Dismiss filed on or about: June 2, 2015. Respondent signed the Submission Agreement: January 29, 2015.

FINRA Dispute Resolution Arbitration No. 14-03666 Award Page 2 of 4

CASE SUMMARY

Claimant asserted the following causes of action: unsuitability, gross mismanagement, negligence, breach of contract, breach of fiduciary duty, overconcentration, and failure to supervise.

The causes of action relate to M.D. Sass Re/Enterprise Partners, M.D. Sass Re/Enterprise International, Waterfall Eden Fund, Ascent Mezzanine Partners II, M.D. Sass Maximus Partners, and M.D Sass Municipal Arbitrage Fund private placements.

Unless specifically admitted in its Answer, Respondent denied the allegations made in the Statement of Claim and asserted various affirmative defenses.

RELIEF REQUESTED

In the Statement of Claim, Claimant requested compensatory damages in the amount of $345,678.00, interest, costs, expenses, attorneys' fees, expert fees, forum fees, and punitive damages in the amount the Panel deems sufficient.

Respondent requested dismissal of the Statement of Claim with prejudice, costs, fees, and such other and further relief that is fair and just.

OTHER ISSUES CONSIDERED AND DECIDED

The Arbitrators acknowledge that they have each read the pleadings and other materials filed by the parties.

On August 18, 2015, the Panel heard oral arguments on Respondent's Motion to Dismiss. On August 19, 2015, the Panel granted Respondent's Motion to Dismiss. The Panel granted Respondent's Motion to Dismiss in part on the grounds that pursuant to FINRA Rule 12206 the eligibility period commenced no later than December 5, 2008. The Motion to Dismiss is granted without prejudice as to any claim related to Claimant's current holding in Ascent Mezzanine Partners II. Respondent's Motion to Dismiss pursuant to Rule 12206 is granted by the panel without prejudice to any right the Claimant has to file in court; the Claimant is not prohibited from pursuing his or her claims in a court pursuant to Rule 12206(b) of the Code. The Panel found that Claimant's claims related to Ascent Mezzanine Partners II were not ripe for the Panel's consideration.

The parties have agreed that the Award in this matter may be executed in counterpart copies or that a handwritten, signed Award may be entered.

FINRA Dispute Resolution Arbitration No. 14-03666 Award Page 3 of 4

AWARD

After considering the pleadings, the testimony and evidence presented at the August 18, 2015 recorded pre-hearing conference, the Panel has decided in full and final resolution of the issues submitted for determination as follows:

1. The Panel granted Respondent's Motion to Dismiss in part with respect to all claims except claims related to Ascent Mezzanine Partners II pursuant to FINRA Rule 12206. The Panel grants leave for Claimant to refile claims relating to Ascent Mezzanine Partners II.

2. Any and all relief not specifically addressed herein, including punitive damages, is denied.

FEES

Pursuant to the Code, the following fees are assessed:

Filing Fees FINRA Dispute Resolution assessed a filing fee* for each claim:

Initial Claim Filing Fee =$ 1,425.00

*The filing fee is made up of a non-refundable and a refundable portion.

Member Fees Member fees are assessed to each member firm that is a party in these proceedings or to the member firm that employed the associated person at the time of the events giving rise to the dispute. Accordingly, as a party, M.D. Sass Securities, L.L.C is assessed the following:

Member Surcharge =$ 1,700.00 Pre-Hearing Processing Fee =$ 750.00 Hearing Processing Fee =$ 2,750.00

Hearing Session Fees and Assessments The Arbitrator has assessed hearing session fees for each session conducted. A session is any meeting between the parties and the arbitrators, including a pre-hearing conference with the arbitrators, that lasts four (4) hours or less. Fees associated with these proceedings are:

Two (2) Pre-hearing session with the Panel @ $1,125.00/session =$ 2,250.00 Pre-hearing conferences: May 4, 2105 1 session

August 18. 2015 1 session Total Hearing Session Fees =$ 2,250.00

1. The Panel has assessed $1,125.00 of the hearing session fees to Claimant. 2. The Panel has assessed $1,125.00 of the hearing session fees to Respondent.

All balances are payable to FINRA Dispute Resolution and are due upon receipt.

FINRA Dispute Resolution Arbitration No. 14-03666 Award Page 4 of 4

ARBITRATION PANEL

Martin A. Edelstein Sam Antar Alan Robert Sacks

Public Arbitrator, Presiding Chairperson Public Arbitrator Public Arbitrator

I, the undersigned Arbitrator, do hereby affirm, pursuant to Article 7507 of the Civil Practice Law and Rules, that I am the individual described herein and who executed this instrument which is my award.

Concurring Arbitrators' Signatures

Martin A. Edelstein Public Arbitrator, Presiding Chairperson

Signature Date

Sam Antar Public Arbitrator

Signature Date

Alan Robert Sacks Public Arbitrator

Signature Date

August 27, 2015

Date of Service (For FINRA Dispute Resolution office use only)

FINRA Dispute Resolution Arbitration No. 14-03666 Award Paae4of4

ARBITRATION PANEL

Martin A. Edelstein Sam Antar Alan Robert Sacks

Public Arbitrator, Presiding Chairperson Public Arbitrator Public Arbitrator

I, the undersigned Arbitrator, do hereby affinn, pursuant to Article 7507 of the Civil Practice Law and Rules, that I am the individual described herein and who executed this instrument which is my award.

Concurring Arbitrators' Signatures

Martin A. Edelstein Public Arbitrator, Presiding Chairperson

Sam Antar Public Arbitrator

Signature Date

Signature Date

Alan Robert Sacks Public Arbitrator

Signature Date

August 27, 2015

Date of Service (For FINRA Dispute Resolution office use only)