From 1990 through January 2012, more than 84% of the customer securities arbitration claims which we have tried through an arbitration hearing have resulted in a favorable award. On the cases in which we have received a favorable award, the arbitration panel on average awarded over 95% of the amount requested.
Charles Schwab & Co. Inc. v. D. Vollstedt and S. Vollstedt TTEE, Steven and Deborah Vollstedt
No. Civ. 11-0709 RB/CEG
Date of Decision: January 10, 2012
Federal Litigation in the U.S. District for the District of New Mexico: Nationwide Broker Dealer sought to vacate an Arbitration Award obtained on behalf of our clients after trial. Federal Court denied the Motion in full and awarded our clients Damages of $151,715.00; 8% Interest on damages from April 20, 2011 thru complete payment of the Judgment; Attorneys' fees in the amount of $144,141.75 and costs of $27,564.82.
D. Vollstedt and S. Vollstedt TTEE, Steven and Deborah Vollstedt v. Charles Schwab & Co. Inc.
FINRA No. 09-06446
Date of Decision: July 22, 2011
Arbitration involved misrepresentations of risks and omission of material facts concerning the asset backed and derivative securities maintained in the largest Ultra-Short Term Bond Fund in the United States. After trial the panel awarded our clients $437,031.57 plus interest which was over 12 times the out of pocket loss of $36,143 as computed by Schwab.
Lyons v. Merrill Lynch and Phua Young
Case #03-04172,
NASD Arbitration: Amount Requested: $625,000
Date of Decision: July 16, 2006
Amount Awarded: $621,562, including $240,000 in punitive damages against Merrill Lynch and Phua Young (Merrill Lynch securities analyst) and $125,000 in interest plus expert witness fees. Case involved conflicts of interest between Merrill Lynch securities analysts and investment banking relating to losses suffered in clients' accounts in Tyco common stock. Although the accounts were overall profitable, after hearing Arbitrators awarded 99% of damages sought relating to decline in Tyco common stock.
David and Jonathan Libman v. David Garfinkel, First Montauk Securities Corp. et.al.
NASD No. 03-02094
NASD Arbitration: Amount Requested: $300,000
Date of Decision: 2/24/06
Amount Awarded: $284,000 plus interest.
Case involved allegations of unauthorized trading, churning and fraud.
Naomi Sayegh v. J. Peter Ricketts, Ameritrade, Inc., Ameritrade Holding, Corp., and Accutrade, Inc.
NASD No. 02-00652
NASD Arbitration: case involved issues relating to conflict of laws, jurisdiction, application of Canadian registration requirements and applicability of Quebec law to Accutrade, a U.S. based broker-dealer and suitability and supervision issues regarding a self directed on-line trading account. Amount requested in Statement of Claim $156,000.
Date of Decision: 7/6/04
Amount Awarded $44,600 plus interest
Nationwide Life Insurance Company v. Helen Constans Christopher Rutland and Barbara Grahams
Index No. 01 CIV 3320 (DRD)
Date of Court Order: January 2002
Amount Awarded: $393,541.76 in compensatory damages and $800,000.00 in punitive damages. Federal Interpleader Action brought by life insurance company regarding the proceeds of an annuity and cross claims prosecuted on behalf of client against co-defendants alleging conversion, forgery, RICO, breach of fiduciary duty, breach of agency, negligence and punitive damages in connection with the purchase and sale of various annuities.
Carmine and Mary Ricca v. Adam Sanders, Salavatore Tacher, Kessington Wells, Inc. et.al.
NASD No. 98-03031
NASD Arbitration: amount requested $75,000.
Date of Decision 8/17/01
Amount Awarded: $85,500.
Case involved allegations of market manipulation, unsuitable recommendations, material misstatements and omissions and fraud.
Robert and Fran Lax v. Kensington Wells, Inc., Joel Grant et. al.
NASD No. 97-00061
NASD Arbitration: amount requested: $436,250
Date of Decision: 11/17/99
Amount Awarded: $113,565 plus specific finding of fraud.
Case involved allegations of market manipulation, unsuitable recommendations, material misstatements and omissions and fraud.
Louis and Dorothy Dequine et. al. v. Daniel Porush, Eric Blumen and Stratton Oakmont, Inc.
NASD No. 95-01335
NASD Arbitration: Amount requested: $283,000
Date of Decision: 2/10/99
Amount Awarded: $242,000 compensatory, $500,000 in punitive damages, attorneys' fees and costs total award in excess of $742,000.
Case involved allegations of market manipulation, unauthorized trading, material misstatements and omissions and fraud.
Matter of the Estate of Sam Gottlieb v. Robert Stier
NASD # 97-00571
NASD Arbitration: Amount Requested: $192,000
Amount Awarded: $69,730 significant because the firm First Interregional went out of business and Claimant Sam Gottlieb passed away before the hearing.
Carol Hovanec, Dr. Marshal Pitts, et.al. v. Allan Viscardi, World Invest Corporation et. al.
NASD No. 97-03034
NASD Arbitration: Represented twelve Claimants through hearing. Amount requested: $1,146,500
Date of Decision: 8/28/98
Amount Awarded: $998,915
Case involved allegations of unsuitable recommendations through an investment advisor associated with clients' accounting firm.
George Pentz, Arlemont Ranch et.al. v. Jordan Belfort, Daniel Porush, Stratton Oakmont, Inc. et. al.
NASD No. 94-02830
NASD Arbitration: Amount Requested: $713,000.
Date of Decision: 4/1/98
Amount Awarded: $713,000 plus interest and costs.
Case involved allegations of market manipulation, unsuitable recommendations, material misstatements and omissions and fraud.
Peter and Jeanne Celiberti v. Daniel Porush, James Kelly and Stratton Oakmont, Inc.
NASD No. 96-01053
NASD Arbitration: Amount Requested: $223,000.
Date of Decision: 6/19/97
Amount Awarded: $215,000 plus costs.
Case involved allegations of market manipulation, unsuitable recommendations, material misstatements and omissions and fraud.
Stonewall Farms, Ltd. and Robert Barsk v. Jordan Belfort, Daniel Porush and Stratton Oakmont, Inc. et.al.
NASD No. 95-00733
NASD Arbitration: Amount Requested: $170,000.
Date of Decision: 5/30/96
Amount Awarded: $122,000 in compensatory damages, $25,000 in attorney's fees plus costs. Total award in excess of $147,000.
Case involved allegations of market manipulation, unsuitable recommendations, material misstatements and omissions and fraud.
Capital Realty Investors Tax Exempt Fund
Delaware Chancery Court
Index No. 14558
Date of Settlement: 1996
Amount of Settlement: $2,500,000.00.
Case involved allegations of corporate management undervaluing the securities held by public in connection with a merger.
Richard Shandelman v. Jordan Belfort, Daniel Porush, Ken Greene and Stratton Oakmont, Inc. et.al.
NASD No. 94-05085
NASD Arbitration: Amount Requested: $109,000
Date of Decision: 5/22/96
Amount Awarded: $93,000 plus interest.
Case involved allegations of market manipulation, unsuitable recommendations, material misstatements and omissions and fraud.
Metropolitan Life Derivative Litigation
Index No. 93-Civ-9035 (DC)
Date of Settlement: 1995
Settlement Amount: $4,000,000.00.
Case involved allegations of breach of fiduciary duty by board of directors and corporate mismanagement.
