Los Angeles, CA
In an arbitration conducted by the Financial Industry Regulatory Authority (FINRA) Morgan Stanley was ordered to pay a retiree over $8.6 million in damages for unauthorized trading and unsuitable investments. FINRA Case#15-01700, Doyle et al vs. Morgan Stanley, et al.
The award included punitive damages of $2 million and attorney fees of $400,000. Punitive damages are awarded in addition to actual damages in situations where the the fact finder deems it appropriate to punish the defendant to deter further similar behavior.
The claimant, a Morgan Stanley customer and his now deceased wife, paid over $2 million in commissions over a 3 1/2 year period and were sold investments in Chinese internet companies as well as an oil & gas company in New Guinea, investments clearly too risky and unsuitable for retirees. At one point the New Guinea investment comprised nearly half of their account holdings.
The FINRA arbitration panel noted a finding of financial elder abuse in their award.
Brokers have a duty to make recommendations that are suitable given the age, health and level of financial sophistication of the customer. If you have losses in investments you feel exposed you to risk that is greater than you wanted to take, contact us to learn how you may be able to recover damages through FINRA arbitration.
FINRA arbitration is much more expedient and far less costly that litigation in the court system. Most cases are resolved in a year or less.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900