* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer is awarded $200,000 in damages (inclusive of punitive damages) relating to investments in the United Development Funding IV alleged Ponzi scheme, Ridgewood Capital Fund IVB, REITs and various limited partnerships.
Notes
Punitive Damages Awarded. Majority Public Panel. Arbitrator Remarks -- Case law cited.
People & Entities
Arbitrators
John H. Fearnow - Chair; Virginia H. Wertz, RHU; Brian W. Yee, PhD
Broker-Dealers Named
Berthel Fisher & Company Financial Services Incorporated
Professionals
Cs: Christopher D. Lonn, Jennings Strouss & Salmon, Phoenix, AZ.
Rs: (BF&CFSInc & RD) Stephen J. Holtman, Simmons Perrine et al., Cedar Rapids, IA. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer loses its claim relating to the alleged unauthorized and unnecessary trades in Cs portfolio margin account by Respondent broker-dealer and is found liable to Respondent broker-dealer for breach of contract on the Counterclaim.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Customers prevail on their claims relating to their allegation that Rs switched Cs out of four mutual funds and invested the sale proceeds in 12 different mutual fund families, which allegedly caused Cs to pay commissions and prevented Cs from taking advantage of cost savings through mutual fund breakpoints.
Notes
All-Public Panel.
Arbitrators
Thomas R. Watkins - Chair; Elliott David Finkel, Esq.; Constance Ellen Boukidis
Broker-Dealers Named
Morgan Stanley
Professionals
Cs: Bruce D. Oakes, Oakes & Fosher, St. Louis, MO.
Rs: (MSSBLLC) Nicholas Y. Lin, Morgan Stanley Legal & Compliance Division, San Francisco, CA. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Claimant broker wins Reformation of his Form U-5 after alleging that Respondents wrongly accused Cs of operating an outside business activity without approval while he was employed by Summit.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this small claims case, an Arbitrator denies Claimant Trust's request for damages as a result of an alleged failure to honor a reduced margin rate in one of their accounts by Respondent.
Notes
Directed Verdict -- Full Dismissal.
Arbitrators
Daniel M. Yamshon, Esq.
Broker-Dealers Named
TD Ameritrade Incorporated
Professionals
Cs: Rick Conway, Encompass Wealth Advisors LLC, Incline Village, NV.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A broker is held liable to Claimant broker-dealer for the amounts due and owing on two promissory notes. The Arbitrator provides a brief explanation as to why damages to Claimant are appropriate.
Notes
Arbitrator Remarks -- Explained Award.
Arbitrators
Mandel E. Himelstein, Esq.
Broker-Dealers Named
Morgan Stanley Smith Barney FA Notes Holdings LLC; Morgan Stanley
Professionals
Cs: (MSSBLLC & MSSBFANHLLC) Shannon L. McDougald, McDougald Law Group PS, Bellevue, WA. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A broker wins expungement of one customer complaint from his CRD record but loses his request regarding another customer complaint pursuant to FINRA Rule 13203(a).
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An All-Public Panel finds that Claimants were not customers of Respondent broker-dealer Edward Jones and denies their claims relating to the alleged failure to distribute the assets of securities accounts pursuant to Transfer on Death Beneficiary Designations.
Notes
Pre-Hearing Adjudication -- Party Dismissal. All-Public Panel. Arbitrator Remarks.
Arbitrators
Marilyn R. Lewis, Esq. - Chair; IIene T. Gormly, Esq.; Carol L. Roslund
Broker-Dealers Named
Edward Jones & Company Limited Partnership dba Edward Jones
Professionals
Cs: James Thomaidis, Gersh & Thomaidis, Denver, CO.
Rs: (EJ&CLP) Thomas H. Wagner, Polsinelli PC, Denver, CO. OSC.
Rs: (RLM) Angelina T. Evans, Palmer Lombardi & Donohue, Los Angeles, CA.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Claims alleging breach of contract and wrongful termination, among other things, claims are denied by the Panel for the broker's failure to comply with the Panel's Orders regarding the filing of his Statement of Claim and providing availability for hearing dates in this matter.
Notes
Pre-Hearing Adjudication -- Full Dismissal. Sanctions imposed.
Arbitrators
Samuel L. McClaren, Esq. - Chair; Wendy P. Rouder; Martin M. Berliner, Esq.
Broker-Dealers Named
Silver Leaf Partners LLC; JP Turner & Company LLC; Moores Creek Capital Partners LLC
Professionals
Cs: (TAW) None.
Rs: (SLPLLC) Fyzul Khan, New York, NY. ISC.
Rs: (RNM) None.
Rs: (KM & FG) No-show. -- Did not voluntarily submit to arbitration.
T-Pty Cs: (SLPLLC) Fyzul Khan, New York, NY. ISC.
T-Pty Rs: (JPT&CLLC) Eric A. Michaels, Saretsky Hart et al., Birmingham, MI. OSC.
T-Pty Rs: (MCCPLLC) No-show. -- Did not voluntarily submit to arbitration.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer alleging elder abuse, among other things, wins her claims against Respondents and is awarded rescission of her investments, along with an award of punitive damages, attorney fees and costs. The Panel also found Respondents liable to customer for monetary sanctions for their multiple failures to comply with discovery obligations.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
Respondent broker-dealer is found liable for failing to timely notify client (or liquidate account) when account equity fell below margin requirements and is ordered to pay Claimant $75,000 in compensatory damages. Respondent's Counterclaim for margin balance due is denied.
Notes
All-Public Panel. Arbitrator Remarks.
Arbitrators
Ellen J. Abrams - Chair; William Kent Brown, Esq.; Marvin S. Lava, Esq.
Broker-Dealers Named
E*Trade Securities LLC
Professionals
Cs: Pro se.
Rs: (E*TSLLC) Meredith F. Hoffman, Vice President, Roseville, CA. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer settles his claims with Respondents relating to his allegation that Respondent broker improperly advised him to invest in various high-risk stocks, including Aramin Corporation, rather than Facebook, per Claimant's original request leading Cs to lose approximately 30% of his life savings.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Donald Glen Russell - Chair; Raymond P. Buschmann, Esq.; Michael Charles Peek
Broker-Dealers Named
National Securities Corporation
Professionals
Cs: Lars K. Soreide, Soreide Law Group, Pompano Beach, FL.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A customer wins over $500,000 in compensatory damages from Respondent broker-dealer and broker relating to the rollover by Claimant of his shares of Lowe's Companies Inc. stock into 72(t) Individual Retirement Accounts.
Notes
Big $s. All-Public Panel.
Arbitrators
Mary E. Woytek, Esq. - Chair; James A. Hayes; James F. Major, DDS
Broker-Dealers Named
Commonwealth Financial Network
Professionals
Cs: Jonathan E. Neuman, Law Offices of J.E. Neuman, Fresh Meadows, NY.
Rs: (CFNInc & JAK) Peter B. King & Robert K. Jamieson, Wiand Guerra King PA, Tampa, FL. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
The Panel denies customer's claims relating to Freddie Mac and Fannie Mae stock finding that Claimant failed in his case-in-chief to present any violations against the remaining Respondent.
Notes
Majority Public Panel. Arbitrator Remarks -- Explained Award.
Arbitrators
Kenneth Dymond, Esq. - Chair; Ralph L. Halpern, Esq.; Maryann Donahue-Yadon
Broker-Dealers Named
Bank of America Merrill Lynch; Merrill Edge Advisory Center; Merrill Lynch Pierce Fenner & Smith Incorporated
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
In this Explained Consolidated Award, two brokers alleging breach of contract win damages on their respective claims. However, Respondent broker is ordered to pay Claimant monetary sanctions for discovery violations.
Notes
This is a Consolidated Award. Big $s. Set-Off Award. Sanctions imposed. Arbitrator Remarks -- Case law cited. Explained Award.
Arbitrators
Jill I. Gross, Esq. - Chair; Richard M. Gray; Ariel Berschadsky
Broker-Dealers Named
None.
Professionals
Cs: (TS) Debra L. Raskin & Valdi Licul & Thomas Bellifemine, Vladeck Raskin & Clark, New York, NY.
Rs: (RAM) Catania Facher & Jessica Breuer, Alonso Andalkar & Facher, New York, NY.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
An All-Public Panel grants Respondent broker-dealer's Motion for Directed Verdict based on the Puerto Rico statute of limitations and insufficiency of evidentiary presentation to support Claimant's allegations. Customer's claims related to the alleged mishandling of Cs accounts due to: unauthorized disbursements from one of Cs accounts, among other things.
Notes
Directed Verdict -- Full Dismissal. All-Public Panel.
Arbitrators
Steven Gerard Goerke, Esq. - Chair; Juan Antonio Suarez Rodriguez; Frances D. Jimenez
Broker-Dealers Named
Popular Securities LLC
Professionals
Cs: Gino Negretti Lavergne, G. Negretti Law Offices, San Juan, PR.
Rs: (PSLLC) Nathan W. Lamb & Jonathan D. Drews, Ulmer & Berne, Chicago, IL. OSC. and Alejandro Febres Jorge, San Juan, PR. ISC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A group of customers lose their damage claim of $23,000,000 in compensatory damages involving their investments in Puerto Rico municipal bonds and closed-end funds recommended by Respondent broker-dealer. One Arbitrator dissents with respect to the denial of damages.
Notes
All Public Panel. Rescission requested. Panel composition issue. Arbitrator Remarks -- Arbitrator dissents with explanation.
Arbitrators
Peter B. Loewenberg - Chair; Robert S. Zuckerman, Esq. (Dissents); John Akroyd
Broker-Dealers Named
UBS Financial Services Incorporated of Puerto Rico
Professionals
Cs: Lloyd R. Schwed, Schwed Kahle & Kress, Palm Beach Gardens, FL. and Maria Victoria Munera-Pascual, Munera & Mercado, San Juan, PR.
Rs: (UBSFSIncPR) Ross E. Firsenbaum & Charles Platt, Wilmer Cutler et al., New York, NY. OSC. and Guillermo J. Bobonis, Bobonis Bobonis & Rodriguez Poventud, San Juan, PR. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
A group of customers settle their claims against Respondent broker-dealer involving options investments. Non-Party broker wins expungement of this matter from his CRD record.
Notes
This is a Stipulated Award. All-Public Panel. Arbitrator Remarks -- Expungement granted.
Arbitrators
Lita S. Menkin, JD - Chair; Jack A. Helms; John Winslow Griesser
Broker-Dealers Named
National Securities Corporation
Professionals
Cs: Gary S. Menzer, Menzer & Hill, Boca Raton, FL.
Rs: (NSCorp) Michael P. Gilmore, Moss & Gilmore, Mineola, NY. OSC.
* Damage field dollar figures are divided by 1,000 and rounded to the nearest $100; e.g., $2,500 appears as" 2.5."
Case Summary
The Panel grants Respondent Morgan Stanley's Pre-Hearing Motion to Dismiss pursuant to FINRA Rule 12504(a)(6)(B) (not involved with the security, product or dispute at issue) with prejudice. Claimants voluntarily withdrew the claims against the other named Respondent broker-dealer.
Rs: (MLPFSInc) Sarah K. Yates, Bressler Amery & Ross, Birmingham, AL. OSC.
Rs: (WFSInc) Judy Louie, Wells Fargo Law Department, Pasadena, CA. ISC.
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