Wedbush Securities Ordered to Pay Customer $1.8M For Elder Abuse-Los Angeles, CA

Wedbush Securities Ordered to Pay Customer $1.8M For Elder Abuse-Los Angeles, CA

Wedbush Securities Ordered to Pay Customer $1.8M For Elder Abuse-Los Angeles, CA 150 150 Robert Rex, Esq.

Los Angeles, CA-July 2017

A Financial Industry Regulatory Authority (FINRA) arbitration panel comprised of three public arbitrators ordered Wedbush Securities to pay two former customers (husband and wife) compensatory damages of $250,000. In addition the arbitration panel, who found that Wedbush subjected the couple to elder abuse,  awarded punitive damages of over $1 million and attorney fees of $277,000 pursuant to the California Elder Abuse and Adult Civil Protective Act, interest and costs.

Information on Elder Financial Abuse

The former customers alleged a number of causes of action, including unsuitable recommendations, failure to supervise the broker, misrepresentation and elder abuse in connection with investments in long term municipal bonds and structured certificates of deposit. Dancy, et al vs. Wedbush Securities, FINRA Case #16-0847.


Arbitration is similar to going to court, however it is generally less costly and a shorter process than court litigation. Most cases are resolved in about 12-14 months. If you have losses in your brokerage account which you believe are the result of negligent or fraudulent advice given to you by the broker, or if you believe your broker has made trades in your account without your permission (unauthorized trading) call to learn how you may be able to recover damages through FINRA arbitration.

Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)

Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.

FINRA Rule 2111- suitability

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.

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Rex Securities Law

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