Recent FINRA Arbitration Awards

The following are recent FINRA Arbitration Awards that are of interest, for varying reasons. All Awards are a matter of public record and are available on FINRA’s web site. These cases are from across the country, and were handled by many different law firms. As a group, the cases illustrate that investors can recover large sums of money, small sums of money, and at times, they do not recover at all. On rare occasion, investors have even been required to pay the attorneys fees incurred by the parties they sue.

 

Phillip O. Sherrill vs. Sagepoint, Inc. f/n/a/ AIG Financial Advisors, Inc. 

FINRA Case 11-02035, Award dated November 27, 2012, Charlotte, North Carolina

The Claimant, Mr. Sherrill, brought several causes of actions concerning his investments in the SALI Multi Series Fund L.P.  Mr. Sherrill requested that the Arbitrators award him compensatory damages of approximately $290,862, less $7,000 that was expected to be paid to Mr. Sherrill from a third party, plus costs.  After four hearing sessions, the Panel determined that AIG was responsible to pay compensatory damages including prejudgment interest in the amount of $283,862.24, plus $300, representing the non-refundable portion of the filing fee.

 

Denise Jardin Rotolante vs. Banc of America Investment Services, Inc. n/k/a, Merrill Lynch, Pierce, Fenner & Smith, Inc., William Mark Gear, Benjamin Michael Buchanan, Miriam Anna Harber, Mark Jeffrey Grant, Southwest Securities, Inc., and Bank of America, N.A. 

FINRA Case 11-00618, Award dated November 27, 2012, Orlando, Florida

The Claimant, Ms. Rotolante, brought various causes of actions against several Respondents.  All causes of actions related to Ms. Rotolante’s investment in preferred shares of Fannie Mae, Freddie Mac, and Lehman Brothers.  Ms. Rotolante requested compensatory damages in the amount of $1 million, as well as other forms of damages and costs.  Because Bank of America, N.A. is not a FINRA member and did not voluntarily submit to arbitration, the Panel did not make any determination on the claims against it.  Additionally, Ms. Rotolante dismissed the claims against Ms. Harber, with prejudice.  After nine hearing sessions, the Panel determined that Mr. Grant was liable for negligent misrepresentation, negligence, and a violation of F.S. § 517.301, and was required to pay Ms. Rotolante $49,000 plus interest, fees, and costs.  The Panel found that Merrill Lynch, Mr. Buchanan, and Southwest Securities were not liable for any of the claims against them.

 

Carolyn T. Gilson vs. TD Ameritrade, Inc. 

FINRA Case 10-01816, Award dated November 26, 2012, Miami, Florida

The Claimant, Ms. Gilson, brought three causes of actions against TD Ameritrade, alleging that they violated U.C.C. Article 4A, engaged in common law negligence, and violated Federal Regulation J.  These causes of actions related to a deposit for an investment in an unspecified security in Ms. Gilson’s accounts, and subsequent transfers from her accounts.  For these causes of action, Ms. Gilson requested compensatory damages in the amount of $2.252 million, as well as pre and post judgment interest, and punitive damages.  After nine hearing sessions the Panel held that TD Ameritrade was liable for common law negligence, violating U.C.C. Article 4A, and violating Federal Regulation J.  For these violations the Panel determined that TD Ameritrade should pay $360,000 in compensatory damages.


Frances G. Straccia, Merit Straccia, Angela Straccia, Mary Beth Lambert, Individually and as Trustee of the Lambert Family Trust and as Trustee of the Mary Beth Lambert Revocable Trust dated 6/2/95 and as Successor-in-interest to the Thomas Lambert QTIP Marital Trust, Ronald Fenrante, Jr., Ronald Ferrante, Sr., Anne Ferrante vs. Focus Capital, Inc., Focus Capital Wealth Management, Inc., Nicholas B. Rowe, Ceros Financial Services, Inc., Addess Realty, LLC, RedBlack, LLC

FINRA Case 11-02737, Award dated November 23, 2012, Manchester, New Hampshire

The Claimants brought several causes of action seeking compensatory damages, treble damages and enhanced exemplary damages in the amount of $27 million.  These causes of action related to various trading strategies.  After the Claimant’s case in chief the Panel granted Addess and Redblack’s request for dismissal.  However, the Panel denied Ceros Financial’s request for dismissal.  Focus Capital, Focus Management and Rowe were found liable for approximately $1.81 million.  All claims for statutory damages and enhanced exemplary damages were denied.

 

Timothy L. Clemm vs. E*Trade Securities, LLC

FINRA Case 12-01227, Award dated November 21, 2012

The Claimant Timothy Clemm requested $21,750 in compensatory damages for the alleged misrepresentation of the liquidity of auction rate securities.  The sole arbitrator granted the unrepresented Mr. Clemm’s requested for $7,320, which represented the simple interest on the $125,000 auction rate position.

 

James A. Berggren and Patricia M. Berggren vs. Morgan Stanley & Co., Incorporated and H. Carey Long

FINRA Case 11-01411, Award dated November 11, 2012, Chicago, Illinois

The Claimants James and Patricia Berggren requested $115,200 in compensatory damages and $61,262 in attorneys’ fees, in connection with causes of actions for unsuitability, unauthorized trading, misrepresentation, negligence, breach of fiduciary duty, breach of contract, common law fraud, and respondeat superior.  They alleged that Morgan Stanley over concentrated their accounts, failed to diversify their investments in the declining market, converted their joint account to an unsuitable margin account, failed to make recommendations in the face of a disability, and failed to implement any defensive measures in the bear market.  The Panel directed that Morgan Stanley pay $52,065 in compensatory damages.

 

Cortell Family Limited Partnership V, Denise Cortell Slomak, as Trustee of the Denise C. Slomak Trust, and Karen Cortell Robbins, as Trustee of the Karen Robbins Trust vs. Morgan Keegan & Company, Inc.  

FINRA Case 1o-01556, Award dated November 1, 2012, Boca Raton, Florida

The Claimants sought damages in excess of $1.8 million in connection with investments in the RMK Select High Income Fund and the RMK Select Intermediate Bond Fund.  After an evidentiary hearing that lasted for ten sessions (5 days), the Panel denied the claims in their entirety.  Requests for attorneys’ fees were also denied.

 

Morgan Stanley & Co. Incorporated vs. Kenneth Klespies 

FINRA Case 11-03486, Award dated October 25, 2012, Tampa, Florida

Morgan Stanley sued its former employee for breach of a promissory note.  In response, the former employee argued that the claims were time barred.  The Arbitrators agreed that Morgan Stanley’s claims were time barred.  However, in an unusual twist, the panel believed that Mr. Klespies would be unjustly enriched if permitted to retain the loan proceeds.  Using its equitable powers, the Panel determined that it was appropriate to grant Morgan Stanley equitable relief for the amount of $206,010, representing the amount that the Respondent would be unjustly enriched as a result of Morgan Stanley’s tardiness.

 

Miriam Dean vs. Wells Fargo Advisors, LLC

FINRA Case 11-03911, Award dated October 19, 2012, Los Angeles, California

The Claimant sued Wells Fargo in connection with her investment in a structured product, Barclay Bank PLC 6-month reverse convertible note.  The Claimant represented her own interests in the arbitration after her attorney withdrew.  After the withdrawal, the Claimant failed to comply or respond to several orders of the Arbitrator.  As a result of her non-compliance, the Arbitrator offered the Claimant three options: (1) proceed with the current schedule and be precluded from presenting evidence at future hearings; (2) request a postponement and have all of the postponement fees assessed against her; or (3) voluntarily request a withdrawal and all forum fees would be assessed equally.  The Arbitrator further provided that if she did not respond by a certain date, the claim would be dismissed and all forum fees would be assessed against her.  Again, the Claimant did not respond and the claim was dismissed with prejudice.

 

Thomas Vogel, Individually and on Behalf of Thomas Vogel IRA vs. UBS Financial Services, Inc.

FINRA Case 11-01103, Award dated October 19, 2012, Cincinnati, Ohio

The Claimant sued UBS for $106,000 in connection with losses incurred in various structured products.  After eight hearing sessions the Panel denied all claims. The Panel ordered the Claimant to pay FINRA $5,062.50, which represented half of the hearing fees.

 

Robert E. McCarthy, Elizabeth N. McCarthy, The John P. McCarthy Education Trust UA 9/11/98, The Emily J. McCarthy Education Trust UA 9/11/98 vs. AllianceBernstein L.P., Alliance Capital Management L.P. and Sanford C. Bernstein & Co., LLC

FINRA Case 10-05687, Award dated October 19, 2012, New York, New York

The Claimants brought several causes of actions in connection with Real Estate Investment Trusts.  All claims were denied.  However, the Arbitrators ruled in the Claimants’ favor on a Motion for Discovery Sanctions against the Respondents. The Claimants’ Motion was based upon Respondents’ practice of responding to discovery requests with a voluminous amount of documents without identifying the requests to which the particular documents were in response to.  These practices continued even after the Panel had directed Respondents to not engage in this conduct.

The Panel believed that the Respondents’ discovery abuses did not impact the outcome of the case.  However, the Panel stated that the “unconscionable discovery practices complained of here obstructed, prejudiced, and sidetracked the conscientious efforts of Claimants’ counsel to develop their case and wasted irreplaceable time and energy they had to devote to this case… [and] [i]t is important to note that Claimants’ counsel was retained on a contingency fee basis and that their financial resources were not unlimited.”  The Panel awarded the Claimants attorneys’ fees of $30,000 as discovery sanctions.

 

Deutsche Bank Securities, Inc. (DBSI) vs. Jon Paul Borro Javellana and Kenneth Ro vs. Barclays Capital Inc.

FINRA Case 11-02442, Award dated September 25, 2012, Los Angeles, California

The Claimant, DBSI, alleged that the Respondents each breached promissory notes related to their employment with DBSI.  DBSI requested that the Panel award $553,550.28 plus interest against Respondent Javellana, and $220,643.44 plus interest against Respondent Ro.  The Panel awarded the Claimant $503,550.28 on the Javellana notes and $170,643.44 on the Ro Notes.

Javellana and Ro counter-sued DBSI, alleged fraud, breach of contract, unpaid wages, failure to provide accurate wage statements, failure to pay wages at termination, intentional interference with contract, intentional interference with prospective economic advantage, defamation, unfair competition, and violation of Business & Professions Code §16600.  After requesting an unspecified amount of damages, the Panel awarded each of the Counter-Claimants $25,000, without explaining its rationale.

Javellana and Ro also requested an unspecified amount of damages from their former employer, Third Party Respondent, Barclays.  Javellana and Ro alleged breach of contract, intentional interference with contract, violation of Business & Professions Code §16600, breach of covenant of good faith and fair dealing, promissory estoppel, fraud, wrongful termination in violation of Public Policy, and unfair competition.  The Panel awarded Javellana and Ro $25,000 each, again without explaining the rationale.

 

Roland Mclean vs. Great Northern Financial Securities, Inc. and Aaron Virgil Porter

FINRA Case 11-03787, Award dated September 10, 2012, Seattle, Washington

In connection with an investment in Desert Capital REIT, Provident’s Shale Royalties Inc. 5 and DBSI Tenant-in-Common, and in Cypress Income Fund, V, LLC secured notes, the Claimant brought causes of action for unsuitability, breach of fiduciary duty, violation of the Washington Uniform Securities Law, violation of the Washington Consumer Protection Act, and negligence.  The Claimant requested an award of $215,000.00.

The panel held that Great Northern was liable for $234,915 in compensatory damages and interest, $25,000 in treble damages, and $36,756.62 for the Claimant’s attorneys’ fees and costs.  The panel also held that Porter and Great Northern Financial were jointly and severally liable to pay $101,721 in compensatory damages and interest and $26,161.52 for attorneys’ fees and costs.

 

Sebert H. Keiffer and Judith A. Keiffer vs. Citigroup Global Markets, Inc.

FINRA Case 11-00620, Award dated September 7, 2012, Richmond, Virginia

In connection with the Claimants’ investment in the Legg Mason Value Trust mutual fund, as well as other mutual funds, the Claimants brought causes of action for breach of fiduciary duty, violation of Virginia’s Securities Act, negligence/negligent misrepresentation/omission, common law fraud, breach of contract, and negligent supervision.  The Claimants requested that the panel award $500,000 in  compensatory damages, as well as attorneys’ fees, interest, costs, punitive damages, and any other relief that the panel deemed proper.  After four hearing sessions the panel directed that Citigroup to pay $111,008.43 in compensatory damages plus interest, $58,200 in attorneys’ fees, and $21,960 in costs.

 

Peggy Jones vs. SWS Financial Securities, Inc. and Southwest Securities, Inc. 

FINRA Case 11-02946, Award dated September 7, 2012, Dallas, Texas

The Claimant alleged that the Respondents failed to incorporate certain language of the Texas Probate Code within documents drafted for the Claimant.  This failure alleged to have resulted in certain accounts being included in a probate estate, as a probate asset.  The Claimant alleged breach of fiduciary duty, negligence, and violation of the Texas Deceptive Trade Practices act.  The Claimant also requested compensatory damages of $17,496.28, $300,000 in punitive damages, $ 34,992.56 in treble damages, and an unspecified amount for interest, attorneys’ fees, and other costs.  After two hearing sessions, the Panel held that the Respondents were jointly and severally liable for $15,000 in attorneys’ fees as required by Texas statute.  However, all other relief was denied.

 

 

David DeBerry IRA, David Keith DeBerry Irrevocable Trust I, David Keith DeBerry Irrevocable Trust II, DeBerry Revocable Living Trust, Rebecca DeBerry IRA, Sharon Lynn DeBerry Irrevocable Trust I, Sharon Lynn DeBerry Irrevocable Trust II, Sheila Ann DeBerry Lea Irrevocable Trust I and Sheila Ann DeBerry Lea Irrevocable Trust II vs. Morgan Keegan & Company, Inc.

FINRA Case 10-04170, Award dated September 6, 2012, Las Vegas, Nevada

In connection with the Claimants’ investments in RMK Select High Income Fund, C shares (RHICX), RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF), RMK Multi-Sector High Income (RHY) and RMK Advantage Income (RMA), the Claimants alleged fraud and negligent misrepresentation, breach of fiduciary duty, unsuitable investments, negligence, failure to supervise, breach of contract, vicarious liability, and violation of other state statutes.  The Claimants requested compensatory damages of $7.55 million dollars plus interest, attorney’s fees, and punitive damages.  After twelve hearing sessions the Arbitrators denied the claims in their entirety, and the Claimants received no relief.  To add insult to injury, the Claimants were charged $7,800 for half of the hearing session fees.

 

Milo H. Segner, Jr. as Trustee of the PR Liquidating Trust vs. Boogie Investment Group, Inc.

FINRA Case 11-03633, Award dated September 4, 2012, Dallas, Texas

In connection with the Respondent’s recommendation of Reg D offerings of preferred stock issued by a series of oil and gas asset holding companies that were managed by Provident Royalties LLC, the Claimant alleged breach of fiduciary duty, breach of contract, negligence and gross negligence, negligent misrepresentation, violations of the Securities Act of 1933, violations of the Texas Securities Act § 33(A)(2), and violations of the Texas Securities Act(F)(1).  The Claimant requested an unspecified amount of damages as well as rescission.  After four hearing sessions, the Panel directed the Respondent to pay the Claimant $485,000 in compensatory damages, and pursuant to the applicable Texas statutes, $243,650 in punitive damages and $105,000 in attorney’s fees.  Notwithstanding the Claimant’s windfall victory, the Arbitrators assessed 100% of the hearing fees, $5,000, against the Claimant.  In all likelihood, the Claimant was assessed fees as a result of the Respondent’s FINRA registration having terminated in September 2011.

 

 

Margaret Hill vs.  Citigroup Global Markets, Inc.

FINRA Case 11-02196, Award dated August 31, 2012, New York, New York

In connection with an investment in the Rochester Municipal Fund, a mutual fund that invested in municipal bonds, the Claimant alleged misrepresentation of material facts, omission of material facts, unsuitable investments, failure to supervise, fraud, negligence, negligent misrepresentation, breach of contract, breach of fiduciary duty, respondent superior, violation of FINRA conduct rules, and violation of NYSE rules.  The Claimant sought damages of $3,514,101.27.  The Panel ruled in the Claimant’s favor, awarding her $1,471,190.93.  The Claimant’s claims for attorneys fees and punitive damages were denied.

 

Metropolitan Bank Group, Inc. and NC Bancorp, Inc. vs. SunTrust Banks, Inc., Suntrust Robinson Humphrey, Inc., and James Ames Whitaker, Jr.

FINRA Case 11-00237, Award dated August 30, 2012, Chicago, Illinois

After settlement of a claim in which the Claimant requested $80,000,000 in compensatory damages for losses related to Citibank preferred Shares, Fannie Mae Preferred Shares, Freddie Mac Preferred Shares and Lehman Brothers Preferred Shares, the only remaining issue was determining the Respondent Whitaker’s entitlement to an expungement of his CRD.  The Panel ruled that expungement was proper for several reasons, including, (1) the Claimant’s account was non-discretionary; (2) Respondent Whitaker fulfilled his duty concerning suitability; and (3) the settlement agreement reflected “a prudent business decision [and] not an admission of liability.”

 

William B. Brown vs. UBS Financial Services Inc. and Michele Aldo

FINRA Case 11-03986, Award dated August 25, 2012, Hartford, Connecticut

In a matter in which the Claimant appeared pro se, the Panel denied all of the Claimant’s allegations related to the purchase of shares of Sears Holding Company stock.  The Panel also  granted the Respondent’s motion to have Respondent Aldo’s CRD expunged.  The Panel granted the expungement because it found that Aldo complied with UBS policy, and her actions did not detrimentally effect the Claimant’s investment.

 

Carlos Lopez Perez vs. Citigroup Global Markets, Inc. and Juan Carlos Estarellas Sabater.

FINRA Case 11-00758, Award dated October 3, 2012, San Juan, Puerto Rico

In connection with the purchase of various Puerto Rican bank issued preferred stocks, the Claimant alleged claims for breach of contract, failure to supervise, negligence, breach of fiduciary duty, and, misrepresentation.  The Claimant requested that the panel award compensatory damages between $95,606.01 and $133,550.67, as well as costs and fees.  The panel found that Citigroup Global Markets, Inc. was liable, and ordered it to pay the Claimant $25,000 in compensatory damages and $300.00 for the nonrefundable portion of the claim filing fee.  No explanation was provided as to how the Arbitrators arrived at the Award.  Because Respondent Estarellas offered alternative investment strategies and did not recommend the subject investment to the Claimant, the panel held that he was not liable, and as a result an expungement of the arbitration from his CRD was recommended.

 

Myrna Wechsler, Individually and as Personal Representative of the Estate of Natalie Varonok vs. Jodi Isdith, Mitchell Holeve and Raymond James Financial Services, Inc.

FINRA Case 10-04291, Award dated October 2, 2012, Boca Raton, Florida

In connection with Respondent Isdith’s alleged conversion of funds from a joint account, the Claimant asserted several causes of action.  The causes of action included: fraud,  breach of a fiduciary duty,  exploitation of an elderly person,  civil theft,  conspiracy,  breach of contract,  failure to supervise,  negligence,  and violation of Florida’s Securities and Investor Protection Act, Chapter 517, Florida Statutes.

Although the Claimant only alleged losses of $269,496.93, Raymond James and Mr. Holeve were each ordered to pay the Claimant $265,000, while Ms. Isdith was ordered to pay $270,000.  No explanation was provided as to why Ms. Isdith was charged an additional $5,000.

Notwithstanding the Claimant’s windfall victory, the Arbitrators nevertheless assessed one half of the hearing session fees to the Claimant.  This amounted to $12,225.  Given the Claimant’s clear cut victory, it is hard to understand why the Respondents were not charged 100% of the hearing session fees, as compared with one half.

The award was granted only for the cause of action of exploitation of an elderly person, and all requests for attorneys’ fees and punitive damages were denied.

  

David R. Berdeaux and William Jason Grace vs. Morgan Keegan & Company, Inc.

 FINRA Case 11-00417, Award dated October 2, 2012, Birmingham, Alabama

In connection with a matter in which the Respondent allegedly failed to advise the Claimants of the nature and extent of the risks of the RMK Multi-Sector High Income Fund, the Claimants brought claims for  breach of contract,  violation of the Alabama Securities Act,  breach of fiduciary duty,  violation of securities regulatory rules,  unsuitability,  failure to supervise,  and intentional and negligent misrepresentation. The Claimants requested compensatory damages in an unspecified amount, as well as damages for charges to their accounts, lost earnings, rescission, pre-and post-judgment interest, costs, attorney’s fees, and punitive damages.  After approximately four days of  hearings, Morgan Keegan was found liable for compensatory damages of $103,213.68.  Requests for attorneys fees, pre-judgment interest and punitive damages were denied.

 

Thomas E. Farnsworth vs. Adam Sclafani

FINRA Case 11-00186, Award dated September 29, 2012, Denver, Colorado

In connection with the Claimant’s investment in various stocks, he asserted causes of action for misrepresentation of account performance, inducement for additional funds, unauthorized trading, and excessive trading/churning. The Claimant sought damages of $61,661.46, plus interest, professional fees and costs, and punitive damages.  After three days of hearings, the sole Arbitrator ordered the Respondent to pay $30,700 in compensatory damages, $6,100 in interest, and $19,664 in costs and expenses. The Arbitrator also ordered that “the parties shall each bear all other remaining costs and expenses incurred by them in connection with th[e] proceeding, including but not limited to attorneys’ fees, costs, and forum fees.”

 

 

Charles Giger vs. Pavek Investments Inc. (n/k/a American Beacon Partners, Inc.), James J. Ahmann, Christipher Lynn Belonge and James Arnold Hintz 

FINRA Case 08-04952, Award dated September 24, 2012, Chicago, Illinois

This case focused on investments in guaranteed bonded life settlements.  The Claimant alleged that these investments were misrepresented in that they did not meet the stated rate of return, and the premiums on the investments were not pre-paid.  After the Claimant’s demands for recission were ignored, the Claimant brought causes of action for common law fraud, violation of the Illinois Securities Law of 1953,  and breach of the Illinois Consumer Fraud and Deceptive Business Practices Act.  For these alleged violations the Claimant requested compensatory damages of $1,100,000, punitive damages of $1,100,000, and attorneys’ fees .  After eight hearing sessions, the panel ruled that: (1) Respondent Ahmann was liable for $400,000 in compensatory damages;  (2) Respondent Pavek Investments Inc. (n/k/a American Beacon Partners, Inc.) was liable for $160,000 in compensatory damages; (3) Respondent Belonge was liable for $160,000 in compensatory damages;  and (4) the Respondent Hintz was liable for $80,000 in compensatory damages.  The entirety of the $14,400 in hearing session fees was assessed against the Respondents.

 

Dominic Mancini and Annette Mancini vs. Harvest Capital LLC.

FINRA Case 11-01278, Award dated September 21, 2012, Boston, Massachusetts

In connection with the Claimant’s investments in an Ambit Funding Note and a Boston Capital Note, the Claimant alleged negligence,  breach of fiduciary duty, and, negligent supervision. The Claimant requested $317,825 in damages, and after six hearing sessions, the panel directed the Respondent to pay $158,250 in compensatory damages.

  

Everett F. Boykin vs. Harold Earl Blondeau, Richard S. Ferguson, John F. Mathews, Morgan Keegan & Company, Inc., John T Pace, Jr. and Michele F. Wood.

FINRA Case 10-05544, Award dated September 19, 2012, Raleigh, North Carolina

This is another in a long series of cases involving mutual funds sold by Morgan Keegan.  This North Carolina Claimant alleged unauthorized trading,  misrepresentation,  breach of a fiduciary duty,  constructive fraud,  deceit,  negligence,  unsuitable investments,  failure to supervise,  common law fraud,  violation of the North Carolina blue sky statute,  and Respondent superior. The Claimant requested $91,873.23 in compensatory damages, $275,619.69 in punitive and treble damages, pre and post judgment interest, and attorneys’ fees and FINRA fees.  After ten hearing sessions, the panel found Respondents Morgan Keegan and Blondeau jointly and severally liable for compensatory damages of $62,000 plus 10% post judgment interest. The claims against respondents Mathews, Pace, Ferguson, and Wood were dismissed with prejudice. Expungement was only recommended for respondent Pace, because the panel found that he “had no contact with [the] Claimant except for one meeting after [the] Claimant’s broker … was fired [and] [h]e followed the supervisory instructions provided by [the] Respondent Morgan Keegan.”

  

Teri Siegel, Individually and on behalf of her IRA, and Doug Siegel vs. Wells Fargo Advisors Financial Network, LLC.

FINRA Case 11-01815, Award dated September 12, 2012, Indianapolis, Indiana

This case involved allegations that investment accounts contained large concentrations of annuities and mutual fund B shares.  The Claimant brought causes of actions for breach of fiduciary duty,  violation of FINRA conduct rules,  negligence,  failure to supervise,  misrepresentations, and vicarious liability.  The Claimant sought compensatory damages of $641,379, punitive damages of $100,000, and an unspecified amount for interest, attorneys’ fees and other costs.  At the close of the Claimants’ case, the Arbitrators granted the Respondent’s oral motion for summary judgment as to Teri Siegel.  It should be noted that the granting of any type of dispositive motion prior to the conclusion of a hearing is very rare.  After six hearing sessions, the panel awarded Doug Siegel $8,500 in compensatory damages, and required that each party pay their own costs and expenses.  No explanation was given as to any of the panel’s rulings.

 

Penny Lipp Family Trust vs. Citigroup Global Markets, Inc. 

FINRA Case 11-01224, Award dated September 11, 2012, Los Angeles, California

This case against Citigroup involved an investment in Citigroup stock.  After the parties settled their dispute, the Claimant’s financial advisor sought to have the complaint removed, or expunged, from his CRD.  The panel granted the expungement based upon several factors, including (1) the size of the settlement relative to the amount of claimed damages;  (2) the absence of any evidence of the financial advisor’s misconduct;  and (3), the Claimant’s attorney’s acknowledgement that “the naming of the broker was an oversight and that the claim was against the corporate parent of Citigroup Global Markets, inc. and therefore had no objections to the granting of the expungement.”

 

Rollin Andrew Park vs. Wells Fargo Advisors, LLC, f/k/a Wachovia Securities, LLC, Wells Fargo Bank, N.A. f/k/a Wachovia Bank, N.A. et al.

FINRA Case 11-01784, Award dated September 11, 2012, Atlanta, Georgia

This case involved claims of misconduct related to an investment in a variable pre-paid forward sales contract, and the Claimant’s attendant loss of UPS stock options.  The Claimant requested compensatory damages of $1,653,357, as well as punitive damages, interest, recission, and costs.  After four days of arbitration, the panel denied the claims with prejudice, and recommended expungement of the matter from the CRD’s of the various individual respondents.  The panel’s decision was influenced by their finding that the contract at issue was sold to the Claimant by Wells Fargo Bank, not by any related broker-dealer.  Because Wells Fargo Bank did not participate in the arbitration, the panel did not make any findings against it.

Jack S. Goldsmith, Inividually and as FBO Jack S. Goldsmith vs. WRP Investments, Inc., Galovich Financial Planning Services, Inc., and Fred Galovich, Sr.

FINRA Case 11-01011, Award Dated August 7, 2012, Pittsburgh, Pennsylvania

In connection with Claimant’s accounts, and the representation of the condition of the investment accounts over a decade, the Claimant asserted claims for breach of contract, breach of fiduciary duty, fraud, misrepresentation, negligence, and violations of consumer protection law. The Claimant requested $1,400,000 in compensatory damages and $2,800,000 in treble damages.  The Respondents filed a Motion to Strike Claimant’s “Model” Damage Calculations and Preclude Claimant’s Expert from testifying as to “Model” Damages.  The FINRA panel later ruled that “the “Model” Damage Calculations were stricken and that the Claimant’s Expert could not testify as to the “Model” Damage Calculations.  The Claimant filed a Motion to Strike Respondents’ Expert Report and Related Testimony.  The FINRA panel ruled that the Respondents’ Expert Report could not be used, although “the Respondents; Expert could testify basing his testimony on source documents.”  After a five day hearing, the FINRA panel awarded the Claimant $410,000 in compensatory damages.

Donald G. Smith and Betty J. Smith, JTWROS, Larry R. Smith IRA, and Larry R. Smith vs. Morgan Keegan & Company, Inc.

FINRA Case 10-03551, Award Dated August 6, 2012, Little Rock, Arkansas

In connection with investments in the RMK Advantage Income Fund, the RMK Strategic Income Fund, the RMK High Income Fund, and other securities, the Claimant asserted eleven causes of action against the Respondent, including violations of FINRA Rules, Tennessee Statutes and federal securities laws. The Claimant sought $257,000 in compensatory damages and other relief as the FINRA panel would deem just and proper. On July 3, 2012, the Respondent filed a Motion in Limine to Exclude Evidence Relating to Claims of Fund Mismanagement and to Bar Claims after the Statute of Limitations has expired.  The court denied the request to bar claims and subsequently the Respondent withdrew the motion. The court awarded $14,631.21 to Larry Smith and Larry Smith IRA in compensatory damages, and $13,938.16 to Donald and Betty Smith in compensatory damages.  The parties’ requests for attorney’s fees were denied.

 

Russell M. King vs. Ameriprise Financial Services, Inc.

FINRA Case 11-01675, Award Dated August 6, 2012, Atlanta, Georgia

In connection with negotiations for, and sale and transfer of Claimant’s financial planning practice to a representative registered with Respondent, the Claimant asserted seven causes of action including fraud, interlocutory injunction and constructive trust, and promissory estoppel. The Claimant requested $452,887 in actual and consequential damages plus further relief deemed just and proper. After a three day hearing, the FINRA panel awarded $226,443.50 in compensatory damages and $62,136 in attorney’s fees.

 

Deephaven Distressed Opportunitie Trading, Ltd., Deephaven Event Trading, Ltf., MA Deep Event, Ltd. Vs. Imperial Capital, LLC

FINRA Case 11-01891, Award Dated August 3, 2012, New York, New York

In connection with unspecified securities, the Claimants asserted claims for breach of contract and breach of fiduciary duty. The Claimants initially requested $3,000,000 in compensatory damages, but at the close of the hearing, increased their request to $4,665,000.  After a five day hearing, the FINRA panel denied the Claimant’s claims and assessed $6,600 in hearing session fees to both the Claimant and Respondent.

 

Michael Aberlich and Patricia Aberlich, jointly, individually and on behalf of the Michael Aberlich IRA, and the Patricia Aberlich IRA vs. Intervest International Equities Corp., Anthony G. Manaia, and Manaia Capital Management, Inc.

FINRA Case 10-00481, Award Dated August 2, 2012, Detroit, Michigan

In connection with alleged recommendations and misrepresentations that led Claimants to purchase and hold three notes issued by subsidiaries of Medical Capital Holdings, the Claimants alleged violation of FINRA suitability rules, negligence, breach of fiduciary duty, violation of the Michigan Uniform Securities Act, fraud and negligent hiring and supervision.  The Claimants requested $500,000 in compensatory damages. The Respondents subsequently filed a counterclaim alleging fraud, negligent misrepresentation, and breach of contract against the Claimants. After a seven day hearing, the FINRA panel awarded the Claimants $450,064 in compensatory damages, $118,795 in interest, $25,000 for expert witness fees, and $100,000 in attorney’s fees. The Respondents’ counterclaim was denied in its entirety.

 

Guadalupe O. Bernal vs. Banc of America Investment Services, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated

FINRA Case 11-01908, Award Dated August 2, 2012, Phoenix, Arizona

In connection with funds allegedly stolen from Claimant’s account by the Respondent’s former employee, the Claimant alleged breach of contract, failure to supervise, and breach of fiduciary duty. In the Statement of Claim the Claimant requested $70,086.54 in compensatory damages, and $25,000 in punitive damages, in addition to attorneys’ fees, interest, and costs. At the close of the hearing the Claimant requested damages in the amount of $148,933.06. The Respondents requested damages in the amount of $65,000 which included attorneys’ fees and costs.  After a three day hearing, the FINRA arbitrator denied both parties’ claims for relief.

 

Jozef Alena, Sr., Velma Byers, Marvin D. Hasting, Barbara J. Hasting, Marvin D. Hasting and Barbara J. Hasting TTEES Living Trust U/A/D 10/14/91 FBO Marvin D. Hasting and Barbara J. Hasting, David O’Harrow, Dennis Sager, and Kim Sager vs. Morgan Stanley Smith Barney and Ingrid Margaret Gintz

FINRA Case 11-02923, Award Dated August 2, 2012, Seattle, Washington

In connection with investments in the real estate development activities of Respondent Gintz and her husband, the Claimants alleged twelve claims, including violation of the Revised Code of Washington and violation of the State of Washington Consumer Protection Act. In the Amended Statement of Claim, the Claimants requested $1,236,000 in damages, interest, costs, and attorneys’ fees. The Respondent requested a finding that “the claim, allegation or information is factually impossible or clearly erroneous” and an order of expungement of her Central Registration Depository record. After a three day hearing, the FINRA panel found in favor of the Respondent but the expungement request was denied.

 

Mike Wind and Candice Wind vs. Morgan Keegan & Company, Inc.

FINRA Case 11-02793, Award Dated August 1st, 2012

In connection with investments in RMK funds, the Claimant alleged breach of fiduciary duty, breach of contract, unsuitability, failure to supervise, violations of securities regulatory rules, common law claims, and violations of Georgia Securities Act with regards to the Respondent. The Claimant requested $25,000 in compensatory damages and other unspecified costs associated with the case. The Respondent was found liable for $25,000 in compensatory damages, reimbursement for the filing fee and $5,000 in attorney’s fees.

 

Adi Danous vs. Milkie/Ferguson Investments, Inc.: Henry J. Ackels Esq., Ackels &Ackels, LLP, Dallas Texas

FINRA Case 11-03938, Award Dated August 1, 2012.

In connection with the purchase of shares of Retirement Value, LLC., the Claimant alleged breach of fiduciary duty, breach of contract, misrepresentations, suitability, negligence, failure to supervise, omission of facts, and fraud.  The Claimant appeared pro se and requested $25,000 in compensatory damages and recission. The FINRA arbitrator awarded the Claimant $25,000 and the cost of the FINRA Dispute Resolution filing fee.

 

William Hass, as Executor of the Estate of Helen Marsh vs. Citigroup Global Markets, Inc.

FINRA Case 11-02911, Award Dated August 1, 2012, Philadelphia, Pennsylvania

In connection with investments in Ford Motor Credit Co. stock and General Motors Corp. preferred stock, the Claimant alleged breach of contract, breach of fiduciary duty, violation of FINRA suitability rules, failure to supervise, control person liability, respondeat superior, and professional negligence. The Claimant requested $45,000 in compensatory damages. The Respondent requested that the claims be denied in their entirety and that the arbitration be expunged from the individual advisor’s record.  After a one day hearing, the FINRA arbitrator denied the Claimant’s claims in their entirety but rejected the Respondent’s request for expungement.

 

Tom R. Moss, Jr. vs. Morgan Keegan & Company, Inc.

FINRA Case 12-00097, Award Dated July 31, 2012

In connection with the Claimant’s RMK funds, the Claimant asserted claims for breach of fiduciary duty, unsuitability, failure to supervise, violation of regulatory rules, violations of Tennessee statutes, and common law claims. The Claimant requested $25,000 in Compensatory Damages and unspecified costs. The FINRA arbitrator denied the Claimant’s requests in their entirety.

C & H Properties, Inc., Calvert-Spradling Engineers, Inc., Robert L. Calvert Consulting, Inc. vs. Morgan Keegan & Company, Inc.

FINRA Case 11-00263, Award Dated July 30, 2012, Jackson, Mississippi, and Fort Lauderdale, Florida

In connection with Claimants’ investments in RMK Select High Income Fund, RMK Select Intermediate Bond Fund, RMK Strategic Income Fund, RMK Advantage Income Fund and RMK Multi-Sector High Income Fund, the Claimants alleged breach of fiduciary duty, negligent supervision, fraud, breach of contract, violation of the Mississippi Securities Act, and violation of the Tennessee Securities Act. The case began with a panel of three FINRA arbitrators. The Claimant sought damages in excess of $1 million punitive damages, costs and attorneys fees.  The Respondent sought attorneys’ fees of $359,170.  During the last week of the evidentiary hearing in Ft. Lauderdale, one of the parties filed a challenge to remove the Chairperson of the Panel. FINRA obliged and the arbitration continued with one of the two remaining arbitrators being appointed Chairperson.

There were two motions by the Respondent to dismiss the case by challenging the case’s right to proceed. The Panel found the case retained its eligibility despite objections by the Respondent that the case violated FINRA Rule 12206(a) and the state statutes of limitation and repose.   The FINRA arbitrators found that the Claimants did not meet their burden of proof that their capital losses were proximately caused by inadequate or misleading information.   After a twelve day hearing, the FINRA Panel found that the Claimant had sufficient knowledge about the risks inherent in his investment and as a result the Claimant’s requests were denied.

 

James C. Little, III, Individually and as Trustee of the Susan B. Little Family Trust vs. William Slay Stevens, Jason Tilton Latham, Henry Everette Walker, Jr., Thaddeus W. Cook, Richard Dennis Thayer, Ronald Wayne Lankford, Bret Lavin Benham, The Legacy Financial Group, Inc., First Legacy Securities, LLC, Reliance Financial Corporation, and Reliance Trust Company

FINRA Case 11-00086, Award Dated July 27, 2012, Birmingham, Alabama

In connection with Respondents’ allegedly illegal sale to Claimants of promissory notes and preferred stock in a company known as First Legacy Investors, the Claimants asserted thirteen causes of action, including omissions and violations of the Alabama Securities act, egregiousness of conduct, and an unspecified amount of compensatory damages.   After a four day hearing, the FINRA panel found Respondents William Slay Stevens, Ronald W. Lankford, First Legacy Securities, LLC, and the Legacy Financial Group, Inc. jointly and severally liable to the Claimants for compensatory damages of $585,000 and punitive damages of $250,000.

 

Mary Louise Shaheen vs. Morgan Stanley Smith Barney, et al. and Paul Joseph Witte,

FINRA Case 11-01906, Award Dated July 20, 2012, San Francisco, California.

In connection with the sale of securities in DuPont, Exxon and JP Morgan Chase, the Claimant alleged that the Respondent engaged in unauthorized trading and churning. The Claimant requested reinstatement of 4,525 shares of JP Morgan Chase and punitive damages. The Arbitrators explicitly ruled that the Claimant had authorized the sales.  After a one day hearing, the panel ruled that the Respondent was not at fault, and the Claimant’s requests for relief were denied.  The Arbitrators also directed that the expungement, or removal of references to the Statement of Claim from the individual Financial Advisor’s CRD.  The Claimant was assessed $3,000 for the full amount of the hearing fees.

 

Rhonda M. Larson, Scott G. Larson, Thomas J. Larson, Sue A. Kerans, Taylor Lord, Mary M. Larson Weber, Individually and on the behalf of the Howard H. Larson Revocable Living Trust, and Securant Bank and Trust, Inc., as Successor Trustee for the Howard H. Larson Revocable Living Trust vs. Wells Fargo Advisors, LLC and Jay H. Weiland,

FINRA Case 10-01775, Award Dated July 20, 2012, Milwaukee, Wisconsin.

The Claimants alleged claims for breached of fiduciary duty, violations of Wisconsin’s Uniform Securities Law, negligent misrepresentation, and unsuitability.   After a nine day hearing the panel found that the Claimants were entitled to $227,500 in compensatory damages. The entirely of the hearing session fees of $20,450 were changed to the Respondents.

 

Estate of Jack A. Gambino and Susan C. Gambino, Executor vs. Triad Advisors Inc., 

FINRA Case 11-01043, Award Dated July 16, 2012, Boca Raton, Florida.

In connection with the Claimant’s investment in 6 unit investment trusts, the Claimant alleged claims for negligence, gross negligence, unsuitability, breach of fiduciary duty, supervisory negligence, civil fraud, breach of FINRA conduct rules, breach of SEC rules and the Securities Exchange Act of 1934, and violation of chapter 517, Florida Statutes.  The Claimant requested relief in the amount of $16,419,748. After a four day hearing, the panel awarded $260,147.32 in compensatory damages to the Claimant.  The Claimant’s Chapter 517 claim was explicitly denied.  Because Chapter 517 provides that the prevailing party may be entitled to attorneys fees, an issue exists as to whether the Respondent will be able to recover its attorneys fees, in spite of having an Award rendered against it on other grounds.

 

Frank C. Steinke, Individually and as Trustee of the Frank C. Steinke Revocable Living Trust UAD 8/7/07 vs. Community Bankers Securities, LLC, Compass Financial Advisors, LLC, Fintegra, LLC, Questar Capital Corporation,

FINRA Case 11-01874, Award Dated July 16, 2012, Washington, D.C.

In connection with the Claimants’ investments in Ridgewood Energy Fund, Desert Capital REIT, Strategic Opportunity Energy Fund, Dupont Auburn Real Estate, LLC, AIC, Inc, and shares of stock in Countrywide Financial, Citigroup and Suntrust, the Claimant alleged twelve causes of action including violations of the Virginia Securities Act and other Blue Sky statutes, as well as violations of FINRA, NASD, and NYSE rules and regulations. Alleged damages were $600,000.  Prior to the hearing, the Claimant dismissed his claims against Questar and Fintegra. Compass Financial Advisors, LLC, was excused from the case because it is not a FINRA member firm and did not submit to FINRA jurisdiction. Community Bankers Securities, LLC however, though a FINRA member firm, neither filed a properly executed Submission Agreement nor appeared before the panel.  After a one half day session, the panel ruled in Claimant’s favor, rescinding Claimant’s investment of $200,000 in AIC, Inc.   The Respondent was also held liable for attorneys fees of $6,000.

 

Robert M. Sapp, Jr. vs. ING Financial Partners, Inc. and Howard R. Pinson,

FINRA Case 09-00543, Award Dated July 15, 2012, Washington D.C.

In connection with the Claimant’s investment in Washington Custom Builders, Inc., the Claimant alleged nine causes of action, including failure of Respondent ING to supervise Respondent Pinson and to properly supervise Claimant’s account, and a violation of the Washington Consumer Protection Act. The Claimant requested $386,000 damages under the Securities Act, $455,000 damages for tort, $260,000 damages under the Washington Consumer Protection Act, and treble damages, costs and attorneys’ fees.  On June 12, 2012, after hearing four days of testimony, the panel found that ING was merely a business vendor of Respondent Pinson, and because of a lack of privity between ING and the Claimant, the panel dismissed Respondent ING, with prejudice.   Separately, the panel ruled that the Respondent Pinson is liable to the Claimant for $115,000 plus interest, as well as $75,000 in attorneys’ fees.

 

Patricia Castro and Alvaro Castro as individuals, and as Trustees for the Castro Family Trust vs. Capwest Securities, Inc.,et al. 

FINRA Case 10-02633, Award Dated July 14, 2012, Los Angeles, California.

In connection with investments in Water Song Apartments and Cabot Turfway Ridge Acquisition, LLC, the Claimants alleged unsuitability, fraud, breach of contract, breach of fiduciary duty, and negligence.  The Claimants sought rescission of the investments and the return of $691,803, interest at the legal rate, punitive damages, and a declaration that the investment was void at inception.  After a four day hearing, the panel held that the Respondents were liable for $156,250 in compensatory damages, plus interest.  The Claimant’s other requests for rescission and punitive damages were denied.

 


William M. Leathers vs. Edward Jones and Richard Allen Scherer, 

FINRA Case 10-05301, Award Dated July 13, 2012, Detroit, Michigan.

In connection with unspecified securities, the Claimant alleged claims for breach of contract, common law fraud, negligence and gross negligence, malpractice, breach of fiduciary duty, violation of Michigan Securities Laws. The Claimant asserted that the Respondents invested his holdings in high-risk securities, contrary to Claimant’s investment objectives.   The Claimant sought $746,484 in damages. After a two day hearing, the panel ruled in the Respondent’s favor, and denied and dismissed all of the Claimant’s claims with prejudice.  One half of the Hearing Session fees was charged to the Claimant.

 

The Lawrence W. Davis Revocable Trust vs. Wells Fargo Advisors, LLC.,

FINRA Case 09-04863, Award Dated June 18, 2012, San Francisco, CA.

In connection with investments in mutual funds, none of which are identified in the Award, the Claimant alleged claims for breach of fiduciary duty, violations of California’s Securities Act, common law fraud, breach of contract and negligence.  The Claimant sought compensatory damages of $500,000 and punitive damages.  Because of the Claimant’s repeated failure to comply with discovery requests, the Arbitrators dismissed the Claimant’s claims.  After a one half day hearing which the Claimant did not attend, the panel further recommended that all references to the arbitration be expunged from the financial advisor’s CRD, maintained with FINRA.

 

Claude and Sheila Berwick vs. Wells Fargo Advisors, LLC.,

FINRA Case 11-03046, Award Dated June 14, 2012, Houston, Texas.

In connection with their IRAs and individual accounts, the Claimants alleged that the Respondent, contrary to the Claimants’ instructions, made high risk changes to the Claimants’ accounts.  The investments at issue included the American Funds New World Fund, the American Funds Capital World Growth Income Fund and the American Funds Capital Income Builder.  The Claimants alleged damages of $568,000.  After a two day hearing, the Arbitrators awarded the Claimants $70,000.  The panel assessed 100% of the Hearing Session fees to the Respondent.

 

Lewis R. Shupe III vs. Ameriprise Financial Services, Inc.

FINRA Case 10-04544, Award Dated June 14, 2012, Philadelphia, PA.

In connection with auction rate securities, the Claimants alleged that the Respondent violated the Securities Exchange Act of 1934, sold unsuitable securities, violated the New Jersey Uniform Securities Act, breached its fiduciary duty, was negligent in supervision, and committed common law fraud. The Claimant sought $275,000 in compensatory damages. On March 8, 2012, the parties settled the matter.  Subsequent to the settlement, the Respondent asked the Arbitrators to expunge the Statement of Claim from the registered representative’s CRD.  After hearing the Respondent’s evidence, the Arbitrators granted the Respondent’s expungement request.

 

Susan Mohseni vs. Scottrade Inc.

FINRA Case 11-01969, Award Dated June 14, 2012, Boca Raton, FL.

In connection with alleged withholding of funds by the Respondent, the Claimant, who did not hire an attorney, alleged misrepresentations, omissions, and a failure to reimburse funds by the Respondent. The Claimant sought compensatory damages of $18,500, punitive damages of $6,500, and arbitration costs.  After several rounds of hotly contested Motions, including efforts to recuse one arbitrator, and the respective parties’ attempts to levy sanctions against each other, the panel dismissed the claims.  The Arbitrators also ruled that the Claimant has the right to recover the $12,000 held by the Respondent, but only upon the satisfaction of various conditions.  The Claimant was also assessed for $832.50 attorney’s fees incurred by Respondents in responding to Claimants’ Motion to Recuse.  Given that the Motion to Recuse was granted, it is unclear why attorney’s fees would have been assessed against the Claimant.

 

Donald Cook and June Cook vs. Morgan Stanley & Co., Incorporated,

FINRA Case 11-04127, Award Dated June 14, 2012, New York.

In connection with unspecified securities, the Claimants alleged breach of fiduciary duty, negligence and breach of contract. The Claimants sought $5,000 in compensatory damages. The sole FINRA arbitrator awarded the Claimants $2,103.60.  The Claimants were represented by the Syracuse University College of Law Securities Law Clinic.

 

Judy Chestnut Armstrong, Bobby J. Rodgers, Debra H. Bryant, Harold L. Byars and Betty J. Byars, James R. Howard and Virginia K. Howard, Jerry M. Taylor and Mary H. Taylor, Judith B. Christopher, Mary S. Rodgers, Trust of W.B. Shaw, Trust of Frances G. Shaw vs. Morgan Keegan and Company, Inc.

FINRA Case 10-03380, Award Dated June 13, 2012, Birmingham, Alabama

In connection with an alleged failure of the Respondent to advise Claimants on the extent of risks involved in purchasing various mutual funds, including, but not limited to the RMK Strategic Income Fund, the RMK Multi-Sector High Income Fund, the RMK High Income Fund and the RMK Advantage Income Fund, the Claimants made ten assertions of misconduct on the part of Morgan Keegan.  The FINRA panel awarded Harold and Betty Byars $83,675, James and Virginia Howard $4,842, Bobby and Mary Rodgers $123,887, Trust of W.B. Shaw $44,408, Trust of Frances Shaw $64,143, and Jerry and Mary Taylor $150,160.  Of the total hearing session fees of $24,450, $14,670 was assessed against Morgan Keegan, and the balance against the Claimants.  With respect to the Howards, their portion of the fees, $2,445, was equal to half their Award of $4,842.

 

Robert Trumper and Karen Trumper vs. Capwest Securities, Inc., et al,

FINRA Case 10-02249 Award Dated June 8, 2012, Denver, Colorado

In connection with the Claimants’ purchase of Striker Petroleum and Medical Capital Corporation (“MedCap”) including MedCap IV and MedCap V, the Claimants alleged violations of the Colorado Securities Act, the Colorado Consumer Protection Act, NASD Conduct Rules, breach of fiduciary duty, and negligence.  The FINRA panel decided in the Trumper’s favor and awarded them $200,000 in compensatory damages for Striker Petroleum, $250,000 for their purchase of Med Cap IV, $100,000 for their purchase of Med Cap V, and found the Respondents liable for $7,500 in interest and attorneys fees.

 

Barbard W. Eccles vs. Morgan Stanley Smith Barney

FINRA Case 11-04028 Award Dated June 8, 2012, New York.

In connection with unspecified securities, the Claimant alleged breach of fiduciary duty, churning, unauthorized trading, failure to supervise, and negligence. The Claimant requested $9,624 in compensatory damages, $425 in costs, and $2,000 in other damages. The sole FINRA arbitrator awarded the Claimant $5,580 in compensatory damages.  It appears from the Award that this case was decided on the papers.

 

Candi Taggart, Personal Representative for the Estate of Richard Taggart, and Trustee of the Taggart Estate Planning Trust vs. TD Ameritrade Inc.

FINRA Case 11-01425, Award Dated June 7, 2012, Seattle, Washington.

In connection with the purchase of stock options and margin activity in the Claimant’s account, the Clamant alleged breach of fiduciary duty, negligence, violations of the Washington State Securities Act and the Washington Consumer Protection Act. After a three day hearing, the Arbitrators awarded $486,000 in compensatory damages, interest, attorney’s fees of $55,000, and costs.

 

Kawaljit Bedi and Ravinder S. Bedi vs. LPL Financial LLC

FINRA Case 11-01036, Award Dated June 6, 2012, Los Angeles, California.

In connection with an unspecified real estate investment, the Claimants alleged violations of California Corporation Securities Law, the California Consumer Legal Remedies Act, FINRA and NASD conduct rules, breach of fiduciary duty, breach of contract, common law fraud, negligence, and failure to supervise. After a 4 day hearing, the Los Angeles, California panel awarded $141,250 to Claimant Ravinder S. Bedi.  All claims filed by Kawaljit Bedi were denied.