Results

Rafael Vizcarrondo and Mercedes Imbert De Jesus v. UBS Financial Services Inc. and UBS Financial Services Inc. of Puerto Rico
FINRA No. 14-02464
Date of Award: December 2016
Amount of Award: $18,577,413.50
Historic award in excess $18,500,000. This award, by many multiples, is the highest award ever in any of the more than 1,800 cases filed against UBS in connection with the sale of UBS proprietary closed-end funds ("CEFs"). Despite UBS' assertion that claimant had net gains of over $5,000,000 over the lifetime of his relationship with UBS, after 50 hearing sessions (the longest trial to date against UBS in PR), the panel awarded 100 percent net out-of-pocket losses (as alleged by claimant during the relevant time period) of $12,716,722; 9 percent New York State compensatory interest of $2,517,911; $163,000 in expert witness fees, $600 in reimbursable portion of the filing fee; and $3,179,180.50 in attorneys' fees. In addition, the panel accessed all hearing session fees of $64,500 against UBS.

TWC Financial LLC SIPIC Liquidation Proceedings
Docket No. 13-01152-ess
United States Bankruptcy Court Eastern District New York
Date December 2016
Represented Polish resident, citizen and official for the United Nations in an affinity fraud case that targeted prominent Polish citizens as part of an international Ponzi scheme. Adversary claim prosecuted in U.S. Bankruptcy Court resulted in additional payout of $144,615.50 to client (in addition to SIPIC settlement of $500,000 and confidential settlement with Penson Worldwide Inc. in U.S. Bankruptcy Court, District of Delaware, Ch. 11 13-10061, as clearing firm).

FINRA Regulatory Enforcement Proceeding (AWC No. 2015046355401) against Oppenheimer & Co. Inc.
Dated: November 2016
Restitution awarded: $336,081
FINRA regulatory action regarding Oppenheimer 's submarining material evidence in three FINRA arbitration cases filed and prosecuted on behalf of my clients. These arbitration cases resulted in payments to my clients totaling in excess of $3,580,000. As a result of Oppenheimer's concealment of evidence in these arbitration claims, FINRA ordered that Oppenheimer pay an additional $336,081 to my clients.

Iris Rodriguez v. UBS Financial Services Inc. and UBS Financial Services Inc. of Puerto Rico
FINRA No. 13-03625
Date Settled: February 2016
Amount of Settlement: Confidential
Case involved purchases and sales of UBS Puerto Rico closed-end funds ("CEFs") to claimant. Claimant, who was a home health care aid with a high school education, won the mega-million lottery jackpot and thereafter entrusted the bulk of her funds of approximately $20,000,000 with UBS PR. Case involved recommended purchase of $16,000,000 in Employment Retirement System Bonds (underwritten by UBS) using allegedly unsuitable leverage through reverse repo transactions, and allegedly illicit transactions recommended by UBS to purchase over $10,000,000 of UBS proprietary CEFs through the proceeds of UBS Non-Purpose Bank loans. After two full weeks of trial in San Juan Puerto Rico, the case settled in February 2016. The settlement was the second highest settlement to date in the more than 1,800 UBS CEF cases filed. The terms of the settlement are confidential (UBS settlement amounts are publically available in the FINRA Broker-Check Data Base).

Julio Cay-Montanez and Gloria S. Martinez-Torres v. UBS Financial Services Inc. and UBS Financial Services Inc. of Puerto Rico
FINRA No.13-03785
Dated October 2015
Case involved the purchases and sales of UBS Puerto Rico closed-end funds to claimant. Prior to Mr. Dennin being retained as trial counsel, there was no offer to settle. UBS calculated that the claimants' account had a $350,000 profit. Although overall the UBS account was profitable, after 11 hearing days and 21 hearing sessions of cross examination of the UBS broker and UBS supervisors regarding the alleged unsuitable purchases of CEFs in Claimants' account, in July 2015, UBS settled this case for $650,000 (as publically reported in FINRA Broker-Check Data Base).

SEC Investigation World-Wide Martial Arts Inc. et al(NT-8832)
Administrative Proceeding File No.3-16505
SEC 1933 Act Release No.9755 dated April 23, 2015
SEC 1934 Exchange Act Release No.13474799 dated April 23, 2015
Case involves two proposed initial public offerings of $20,000,000 each and alleged distribution of unregistered securities. Approved by AIG (insurer providing directors and officers liability coverage) to represent the former Chief Financial Officer in the SEC investigation and SEC did not pursue claims against the client.

John S. Patterson and Stella C. Patterson v. Ladenburg Thalmann & Co. Inc.
Docket No. L-1435-14
Superior Court of New Jersey, Law Division Ocean County
Order dated December 19, 2014
Legally Significant Decision
.
After submissions of legal memoranda and oral argument, court denies Ladenburg's motion to stay and compel arbitration and agrees with plaintiffs that Ladenburg's incomplete and ambiguous contract did not require arbitration. Ladenburg's appeal pending Docket No. A-002448-14T2.

John S. Patterson and Stella C. Patterson v. Ladenburg Thalmann & Co. Inc.
Docket No. L-1435-14
Superior Court of New Jersey, Law Division Ocean County
Order dated October 24, 2014
Legally Significant Decision.
After submissions of legal memoranda and oral argument, court denies Ladenburg's motion to dismiss claims dating back to June 2004 based upon the statute of limitations. Court agreed with plaintiffs' argument that under the New Jersey discovery rule, fraudulent concealment and equitable estoppel, Ladenburg's motion must fail.

TWC Financial LLC SIPIC Liquidation Proceedings
Docket No. 13-01152-ess
United States Bankruptcy Court Eastern District New York
Date of SIPIC settlement: March 5, 2014
Represented Polish resident, citizen and official for the United Nations in a significant affinity fraud case that targeted influential Polish citizens in an alleged international Ponzi scheme. Filed various bankruptcy adversary proceedings in the United States Bankruptcy Courts in the Eastern and Southern Districts of New York, FINRA arbitration against clearing firm, claim in United States Bankruptcy Court in the District of Delaware and SIPIC claim under conversion. SIPIC settled for $500,000, the maximum amount of coverage permissible by statute.

Weiss v. David A. Noyes & Co.
FINRA No. 12-01628
Date of Settlement: March 2014
Case involved the sale of a Variable Life Policy and alleged unsuitable investments in closed-end funds.
Noyes settled for $270,000 (as publically reported in FINRA Broker-Check Data Base).

John S. Patterson and Stella C. Patterson v. Oppenheimer & Co. Inc.
FINRA No. 12-01229
Date of Settlement: August 2013
Case involved selling away and conversion of approximately $1,000,000 by Oppenheimer's former Executive Director of Investments, Mark C. Hotton. Prior to the commencement of arbitration the hearings, Hotton filed for protection under the bankruptcy laws and as a result the case proceeded solely against Oppenheimer on lack of supervision claims. Case was significant in that none of the approximate $1,000,000 converted was deposited in any Oppenheimer account and thus Oppenheimer's defense was that it reasonably supervised Hotton and had no reason to suspect that he did anything wrong. Oppenheimer settled for $825,000 (as publically reported in FINRA Broker-Check Data Base).

Dennis Spina v. Ladenburg Thalmann & Co. Inc.
Docket No. 2013-CP-07-02232
Court of Common Pleas, South Carolina
14 th Judicial District
Date of Court Order: August 2013
Emergency Court Filing
Client became gravely ill. Court granted filed expedited de bene esse motion for deposition to conduct videotaped deposition at client's home to preserve testimony and victim statement. The videotaped victim statement, taken literally at client's deathbed, provided relief to the client and was one of several compelling client statements made at the criminal sentencing of Mark C. Hotton in United States District Court in Eastern District of New York in June 2015.

Dennis Spina v. Oppenheimer & Co. Inc.
FINRA No. 11-0366
Date of Settlement: April 2013
Case involved selling away and conversion by Oppenheimer's former Executive Director of Investments, Mark C. Hotton. Prior to the commencement of arbitration the hearings, Hotton filed for protection under the bankruptcy laws and as a result the case proceeded solely against Oppenheimer on lack of supervision claims. Oppenheimer's defense was that it reasonably supervised Hotton and had no reason to suspect that he did anything wrong. Oppenheimer settled for $210,000 (as publically reported in FINRA Broker-Check Data Base).

Louis Pitch and Donna Pitch v . Oppenheimer & Oppenheimer & Co. Inc.
FINRA No. 09-07047
Date of Decision: January 29, 2013
Amount Awarded: In $2,553,271, including $100,000 in punitive damages due to the "egregious conduct of Oppenheimer" plus interest. Case involved selling away and conversion of approximately $4,950,000 by Oppenheimer's former Executive Director of Investments, Mark C. Hotton. The day before arbitration hearings commenced, Hotton filed for protection under the bankruptcy laws and as a result the case proceeded solely against Oppenheimer on lack of supervision claims. Case was significant in that none of the $4,950,000 converted was deposited in any Oppenheimer account and thus Oppenheimer's defense was that it reasonably supervised Hotton and had no reason to suspect that he did anything wrong.

Pitch et al. v. American Capital Partners LLC
FINRA No. 11-01760
Date of Settlement: September 2012
Case involved alleged forgeries, unauthorized wire transfers and thefts by Mark C. Hotton as Supervising Branch Manager of American Capital Partners LLC.
American Capital settled for $75,000 (as publically reported in FINRA Broker-Check Data Base).

Denefrio v. Investors Capital Corporation et al.
FINRA No. 10-04721
Date of Settlement March 2012
Case involved the alleged unsuitable recommendation and sale of variable annuities. In the middle of the hearing, after cross-examining the broker, the case settled.
Investors Capital settled for $225,000. (as publically reported in FINRA Broker-Check Data Base).

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; 8 percent 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.

Louis Pitch and Donna Pitch v . Mark C. Hotton et. al.
Index No. 09-5599
United States District Court
Eastern District of New York
Date of Filing: December 2009
Ex-Party TRO filed obtaining Freeze Order and Expedited Discovery. Through this contested litigation, Mr. Dennin was able to subpoena numerous banks to follow the money and uncovered a multimillion-dollar Ponzi scheme by Mark C. Hotton, as a broker for Ladenburg Thalmann and subsequently Executive Director of Investments at Oppenheimer & Co. Inc. The evidence gathered in this federal proceeding was shared with FINRA Enforcement attorneys and supervisors in Rockville Maryland and federal prosecutors in New York and formed the basis for Hotton ultimately being barred from the securities industry and pleading guilty to federal charges brought by the United States Attorney's Office in the Eastern District of New York.

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 percent 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 was $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 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, Salvatore 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 adviser 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.
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.
Case involved allegations of breach of fiduciary duty by board of directors and corporate mismanagement.

To find out more about the results that the New York law firm of Timothy J. Dennin, P.C., provides its clients, contact us by calling 866-437-9475.