Nathan Friedlander v. Charles Schwab & Co. Inc.
FINRA #09-06438 (Alabama)
Case Filed: November 10, 2009
Date of Settlement: January 2012
Amount of Settlement: Subject to Confidentiality Agreement
Case involves alleged losses of $109,650 in the Charles Schwab High Yield Fund. Allegations concern the marketing this fund as extremely liquid low risk investment while majority of the Fund was invested in highly risky and illiquid asset backed and mortgage backed securities. While Schwab was recommending to its clients that they maintain their positions in the Schwab High Yield Fund. Schwab allegedly failed to disclose and it was liquidating its position in the Schwab High Yield Fund.
Mark Zweber v. Blair Jonathan Spruill and Harry Friedman
FINRA #10-04468 (Minnesota)
Case Filed: October 1, 2010
Date of Settlement: November 2011
Amount of Settlement: Subject to Confidentiality Agreement
Case involves alleged unauthorized trading, churning, misuses of the firm's error account and other violations resulting in damages of $129,000.00
Mark F. Goodfriend et. al. v. Wells Fargo Advisors, LLC (f/k/a Wachovia Securities, Inc.)
FINRA # 09-04999
Case Filed: August 25, 2009
Date of Settlement: November 2011
Amount of Settlement: Subject to Confidentiality Agreement
Case involves alleged misrepresentations, omissions and concentration concerning the purchases of approximately $750,000 of Van Kampen High Yield Municipal Fund; $169,000 in Van Kampen Strategic Municipal Income Fund Class A and approximately $378,000 in American Capital Strategies.
Brian C. Nixon and Roseanna M. Nixon v. Workman Securities Corporation, John M. Leonard, Tracy Anne Gustafason, Paul Jaob Maxa, Klaus Herbert Siepman, Robert Alan Vollbrecht and Dana Bruce Vietor
Case Filed: August 18, 2009
Date of Settlement: November 2011
Amount of Settlement: Subject to Confidentiality Agreement
Case involves the recommended purchase of $180,000 in a Private Placement called Provident Energy No. 2, L.P. Allegations concerning unsuitable recommendation to retired couple to purchase extremely risky Private Placement, failure to disclose 9% commission on the sale, violations of broker-dealer supervisory obligations under FINRA Rules and Regulations and violation of State of Illinois Securities Department Consent Order and Special Supervision Agreement.
M. Freddie Reiss, Individually and on behalf of IRA v. Goldman Sachs Execution & Clearing, LLP., et. al.
FINRA Case # 08-04523
Case Filed: November 2008
Date of Settlement: June 2010
Amount of Settlement: Subject to Confidentiality Agreement
Case involves Goldman Sachs Execution & Clearing, LLP's ("GSEC") role as Prime Broker and Clearing Broker for the Bayou No. Leverage Fund and other related Bayou Hedge Funds. From 1996 through August 2005, the Bayou Hedge Funds were run as a criminal Ponzi scheme resulting in losses to investors of approximately $250,000,000. Claim concerns numerous red flags that allegedly put GSEC on notice of the fraud and GSEC's failure to notify GSEC's clients of the fraudulent conduct while continuing to collect millions of dollars from the Bayou Hedge Funds as the Prime Broker and Clearing Firm for these Funds.
Charles A. Stokes and Mary E. Stokes v. Charles Schwab & Co., Inc. and Kimon Daifotis
Case Filed: September 30, 2009
Date of Settlement: April 2010
Amount of Settlement: Subject to Confidentiality Agreement
Case involves purchase of approximately $600,000 in the Charles Schwab High Yield Fund. Allegations concern the marketing of this Fund as highly liquid low risk investment while the majority of the Fund's Assets were concentrated in highly risky asset backed and mortgage backed securities. While Schwab was liquidating its position in the Schwab High Yield Fund.
Lee and Dolores Moran v. Edward Jones & Co. L.P.
FINRA Case # 09-03763
Case involves Claimants in their eighties who lost bulk of their retirement portfolio (in excess of $300,000)as result of alleged hold recommendation.
Date of Settlement: November 2010 (through Mediation)
Amount of Settlement: Subject to a Confidentiality Agreement
Significant because claim did not involve the recommendation of a purchase or sale of a security but the recommendation to hold a security.
Charles E. Anderson and Eric E. Anderson v American Express Advisors, Inc.
FINRA Case # 05-02010, Lexington, Kentucky
Amended Statement of Claim filed January 2009
Date of Settlement: March 2010 (through Mediation)
Amount of Settlement: Subject to Confidentiality Agreement
Case involves purchases of short put option contracts and use of leverage and allegations of unsuitable aggressive short term option trading in Strategic Portfolio Service Advantage Accounts resulting in losses of approximately $2,000,000.
Arthur A. Bartone, individually and on behalf of IRA and Barco Building Industries, Inc. v. Charles Caputo, Richard John Belz, Douglas Gene Belz, Thomas William Laundrie, Gary Ira Purcell, Mohandai Surajaballi and Basic Investors, Inc.
FINRA Case # 08-02651
Case Filed: December, 2008
Date of Judgment: Entered February 11, 2010
Amount of Judgment: $279,916.80 against Charles Caputo only.
Judgment entered in connection with a felony plea entered by Charles Caputo. Basic Investors withdrew from the securities business. Settled remaining claims under Control Person Liability Claims and filed and collected claim in Bankruptcy against Thomas William Laundrie Bankruptcy Case No. 809-73846 in October 2010.
Case involved the loss of approximately $320,000 and allegations of unauthorized and excessive trading, lack of supervision and issuance of fraudulent account statements to the client masking the losses in the accounts
Alvin Benjamin & Deborah Benjamin Joint Tenants, Cunningham Associates, LP, Mitchel Houses, Mitchel Field Senior Citizens Redevelopment Company, LP, Marine Terrace Associates, LLC, Jackson Terrace Associates of L.I. L.P. and Benjamin Development Company, Inc. v. Jason Peltz, Douglas Jones, Armand Pastine, Michael Rabinowitz and Maxim Group., LLC
FINRA Case No. 08-01839
FINRA Arbitration: Amount Requested $9,182,997.00
Case involved the recommended purchase of $10,000,000 (Ten Million Dollars) of Maxim Collateralized Debt Obligations ("CDO's") in the form of Principal Protected Notes ("PPN's"). Allegations concerned misrepresentations regarding the safety characteristics of the CDO's and maturity date of the CDO's. Clients were put into the lowest level tranche with the highest possible risk while the clients' investment objectives were safety of principal and income.
Date of Settlement: September, 2009
Amount of Settlement: Subject to a Confidentiality Agreement
Jeffrey B. Sciallo et al. v. Tyco International Ltd. et al.
Civil Action No. 03-1354-B
MDL No. 1335 Federal securities proceeding against Tyco International Ltd., Dennis Kozlowski and Mark Swartz. Represented three former officers of U.S. Surgical Corp. in connection with the merger of Tyco and U.S. Surgical. Claims concerned violations of Section 10b-5 of the Securities and Exchange Act of 1934 and stock options.
Date of Settlement: November 2008
Settlement Amount: Subject to a Confidentiality Agreement.
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.
G. Brooks Biddle et. al. v. Comprehensive Environmental Systems, Inc. et. al.
Case No. 96 Civ. 343
U.S. District Court E.D.N.Y.
Violation of 10b-5 of the Securities and Exchange Act of 1934 regarding Regulation S Offshore Offering.
Date of Settlement: 1998
Amount of Settlement: Subject to Confidentiality Agreement
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.
Frist Capital Partners, Thomas F. Frist and Patricia F. Elcan v. Ideon Group, Inc., Paul G. Kahn and William Lackey
96 Civ.3906 (WK) U.S. District Court S.D.N.Y.
Violation of 10b-5 of the Securities and Exchange Act of 1934 regarding the sale of Ideon common stock to Private Investment Bank and Institutional stock holder.
Date of Settlement: 1997
Amount of Settlement: Subject to Confidentiality Order.
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.
PaineWebber Limited Partnerships Litigation
Index No. 94-Civ-8457 (SHS)
Securities Class Action concerning allegations of misrepresentations and omissions relating to the purported safety characteristics of limited partnerships marketed by PaineWebber to the investing public.
Date of Settlement 1997
Amount of Settlement $200,000,000.00.
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.
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.
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.
Prudential Securities Litigation
Index No. MDL 1005
Securities Class Action against Prudential Securities Inc. concerning allegations of misrepresentation and omissions concerning the safety characteristics of limited partnerships marketed by Prudential to the investing public.
Date of Settlement 1995
Amount of Settlement $100,000,000.00.
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.
HMO America Securities Litigation
Index No. 92-Civ.-3305 (CPK)
Securities Class Action against directors regarding allegations of misrepresentation of claims reserves resulting in elevated stock values.
Date of Settlement 1993
Amount of Settlement $4,000,000.00.
The Regina Company
Inc. Securities Litigation
Index No. 88-4149 (NHP)
(Securities Class Action against Chairman and CFO of former Regina Vacuum Cleaner Company and Big Six Accounting firm), Allegations of accounting irregularities, financial fraud and misrepresentation resulting in inflated stock values.
Date of Settlement 1992
Amount of Settlement $7,300,000.00.
