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Broker Dealer Experience

Broker-Dealer Experience

  • Represented a large international broker-dealer firm in an arbitration before the NASD involving allegations of unsuitable investments in managed money, aggressive mutual funds, individual stocks and hedge funds. We managed through the extensive of use of discovery, including several third party subpoenas, to gather evidence establishing that the investor was sophisticated, had pursued similar strategies with other broker-dealer firms, and had made all of his own investment decisions. As a result, although the investor claimed losses of between $1 million and $3 million, the case was ultimately settled prior to the hearing for only $37,500.
  • Represented a large national broker-dealer firm in a series of three NASD Arbitrations filed against the firm involving allegations that one of its former registered representatives engaged in B-share mutual fund switching, unauthorized and unsuitable trading, and churning. Despite very difficult facts tending to support some of the allegations, a lengthy complaint history against the broker, and significant out-of-pocket-losses, we managed to position each of the three cases for mediation. Each case was resolved at mediation for between 17% and 55% of the total net out-of pocket losses.
  • Represented a large international national insurance company and its captive broker-dealer in five NASD Arbitration claims brought by 38 municipal firefighters in which they alleged that the registered representative was negligent and committed fraud in recommending that they invest in aggressive annuity subaccounts in their employer sponsored 457 Retirement Plan. After consolidating the cases we were able to position the case for mediation and a successful settlement. Settlement prior to a hearing was important to the client to avoid ill will with the municipal sponsor, to avoid negative press and to lessen the likelihood of additional claims by hundreds of other employees serviced by the registered representative.
  • Represented a national wire house in a NASD Arbitration brought by several family members who sought compensatory damages in excess of $25,000,000. The group alleged the registered representative churned their accounts, she was negligent and she committed fraud and suitability violations arising out of option put selling on technology stocks. Through extensive discovery we were able to identify multiple self-directed option accounts owned by various family members enabling us to position the case for mediation. We successfully settled the case for less than 5% of the demand.
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