Note 12 - Commitments and Contingencies

9 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 12. COMMITMENTS AND CONTINGENCIES

Leases

The Company leases office space in various states expiring at various dates through April 2025, and as of June 30, 2015, is committed under operating leases for future minimum lease payments as follows:

Fiscal Year Ending	Rental Expense		Less, Sublease Income		Net
2015	$	870,000	$	34,000	$	836,000
2016		2,902,000		136,000		2,766,000
2017		2,145,000		80,000		2,065,000
2018		1,497,000		-		1,497,000
2019		805,000		-		805,000
Thereafter		1,419,000		-		1,419,000
	$	9,638,000	$	250,000	$	9,388,000

The total amount of rent payable under the leases is recognized on a straight line basis over the term of the leases. As of June 30, 2015 and September 30, 2014, the Company has recognized deferred rent payable of $58,000 and $160,000, respectively, which is included in “Accounts payable and other liabilities” in the condensed consolidated statements of financial condition. Rental expense under all operating leases for the nine months ended June 30, 2015 and June 30, 2014 was $2,973,000 and $2,929,000 respectively. Sublease income under all operating subleases for the nine months ended June 30, 2015 and 2014 was approximately $204,000 and $28,000 respectively.

Litigation and Regulatory Matters

The Company and its subsidiaries are defendants or respondents in various pending and threatened arbitrations, administrative proceedings, and lawsuits seeking compensatory damages of approximately $31,500,000. Many of these claimants also seek, in addition to compensatory damages, punitive or treble damages, and all seek interest, costs and fees. These matters arise in the normal course of business. The Company and its subsidiaries believe these actions are without merit and intend to vigorously defend themselves in these actions. The ultimate outcome of these matters cannot be determined at this time.

The Company establishes liabilities for potential losses from complaints, legal actions, government investigations and proceedings where the Company believes that it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In making these decisions, the Company bases its judgments on its knowledge of the situations, consultations with legal counsel and its historical experience in resolving similar matters. In many lawsuits, arbitrations and regulatory proceedings, it is not possible to determine whether a liability has been incurred or to estimate the amount of that liability until the matter is close to resolution. However, accruals are reviewed regularly and are adjusted to reflect the Company’s estimates of the impact of developments, rulings, advice of counsel and any other information pertinent to a particular matter. Because of the inherent difficulty in predicting the ultimate outcome of legal and regulatory actions, the Company cannot predict with certainty the eventual loss or range of loss related to such matters. These claims may be covered by our errors and omissions insurance policy. While the Company will vigorously defend itself in these matters, and will assert insurance coverage and indemnification to the maximum extent possible, there can be no assurance that these lawsuits and arbitrations will not have a material adverse impact on the Company's financial position. At June 30, 2015 and September 30, 2014, the Company accrued approximately $635,000 and $440,000, respectively, for legal fees and potential settlements for these matters, which are included in "Accounts payable and other liabilities" in the condensed consolidated statements of financial condition. The Company has included in "Professional fees" litigation and FINRA related expenses of $566,000 and $274,000 for the three months ended June 30, 2015 and 2014, respectively, and for the nine months ended June 30, 2015 and 2014, $1,466,000 and $852,000, respectively.