Favorable Results for Clients

Following are some favorable results obtained for clients in securities arbitration proceedings.

Most cases are successfully settled prior to reaching arbitration. In such cases the names of former clients and brokerage firms involved are omitted, because settlement agreements prohibit such disclosures.

Kellstrom v. Berthel, Fisher & Company Financial Services, Inc., et al. $547,986

An NASD panel of arbitrators awarded compensatory damages, attorney’s fees, and costs totaling $547,986, to James and Jane Kellstrom in their arbitration proceeding against Berthel, Fisher & Company Financial Services, Inc., and Max L. Conde. We demonstrated that Berthel, Fisher and Conde had been negligent and breached their fiduciary duties to the Kellstroms by recommending the purchase of risky, unsuitable investments. The Kellstroms also claimed that Berthel, Fisher had been negligent in its supervision of Conde

Stockbroker Fraud Settlement $1,000,000

A retired widow was seeking to recover the losses she suffered as a result of the fraudulent investment advice given by her broker. An NASD claim was filed against two national brokerage firms on her behalf, and the claims were resolved by payment of $1,000,000 by the respondents.

Ponzi Scheme Settlement $725,000

Four investors lost their retirement savings and filed an NASD arbitration claim against three national brokerage firms. Claimants asserted that respondents were liable to claimants for facilitating and failing to warn them about a ponzi scheme operated by an investment advisory firm that cleared securities transactions through the brokerage firms. The claim was resolved by payments to claimants in the total amount of $725,000.

Unsuitable Investment of Retirement Assets Settlement $385,000

A retired doctor and his wife filed an NASD claim against a national brokerage firm, seeking recovery of money damages suffered by claimants. Claimants’ losses were the result of the unsuitable and fraudulent investment recommendations and discretionary investment of claimants’ retirement assets by the brokerage firm and its broker, and the brokerage firm’s failure to supervise its broker. Claimants’ claims were resolved by payment to them in the amount of $385,000.

Broker Theft Settlement $250,000

A client came to us as a result of the theft of their assets by a broker and the conversion of those assets for the broker’s own use and benefit. We filed a claim against the broker and the national brokerage firm for failure to adequately supervise its broker. The claim was resolved by payment to claimant in the amount of $250,000.

Junk Bonds Settlement $230,000

A widowed school teacher filed an NASD claim against a small brokerage firm to recover losses she suffered as a result of the unsuitable investment recommendation to liquidate individual stock positions and purchase large holdings in junk bonds. Claimant also suffered losses as a result of the substantial use of margin by the broker to make purchases on claimant’s behalf. Respondent paid $230,000 to claimant to resolve the claims.

Annuity Case Settlement $225,000

A retired couple in their seventies suffered losses when their fixed assets and mutual funds were liquidated by a regional brokerage firm and its broker to purchase variable and equity-indexed annuities. An NASD claim was filed on their behalf, citing the firm’s failure to supervise the broker. The claims were settled by payments to claimants in the total amount of $225,000.

Technology Stock Over Concentration Settlement $200,000

A client suffered losses that arose from the unsuitable over-concentration of their assets in the technology and telecommunications sector of the stock market, the concentration of mutual fund investments in proprietary mutual funds, and the unsuitable and unauthorized use of margin trading in an individual account by the claimants’ brokers. A claim against their national brokerage firm was resolved by a payment to claimants in the amount of $200,000.

Tech Stock Over Concentration Settlement $175,000

A medical professional and his wife inherited bond investments that were liquidated by a national brokerage firm. The funds were subsequently invested, resulting in an unsuitable over-concentration in the technology and telecommunications sector of the market. The NASD claim was resolved when the claimants accepted payment from the brokerage firm in the amount of $175,000.

Unsuitable Investment of Widow’s Savings Settlement $170,000

The unsuitable investment of the majority of a widow’s assets in the technology sector of the stock market, and a national brokerage firm’s negligent supervision of its broker, resulted in an NASD claim being filed against the brokerage firm. The claims against the brokerage firm were resolved by payment to claimant in the amount $170,000.