Articles Posted in Arbitration Award

Royal Alliance ordered to pay investor $870,000.

In January, 2015, a three member FINRA arbitration panel sitting in Los Angeles, CA issued an $870,000 binding arbitration award against Royal Alliance Associates for the sale of a variable universal life policy.

The underlying matter involved the surrender of a Provident Mutual variable universal life policy.  The Claimants allegations were that Royal Alliance breached its fiduciary duties, failed to follow industry rules, engaged in unfair and deceptive trade practices and violated state and federal securities laws.

Cornerstone Wealth Management hit with FINRA award.

In June, 2015, a three member FINRA arbitration panel sitting in San Diego, CA issued a $176,500 binding arbitration award against Cornerstone Wealth Management and Chris Meacham, which included $90,000 in punitive damages.

The underlying matter involved an investment in Scripps Investment Mortgage Fund.  The Claimants allegations were that Chris Meacham and Cornerstone mismanaged a customer account, breached fiduciary duties, failed to follow industry rules and standards and made intentional and negligent misrepresentations. The causes of action pertained to Meacham and Cornerstone’s sale of the Scripps fund which invested in risky second, third and fourth trust deeds and high-risk construction loans, when the offering materials represented that the fund invested solely in first trust deeds on real property.

In February, 2016, a three member FINRA arbitration panel issued a $450,000 binding arbitration award against Unionbanc Investment Services for conduct related to one of their former registered representatives Cynthia Higgins.

The underlying matter involved allegations that Higgins made unsuitable investments, over concentrated the accounts’ assets, and failed to disclose material facts. The claims made were for negligence, breach of fiduciary duty and failure to supervise.

As a result of this award The Law Office of David Liebrader has opened an investigation into Unionbanc and registered rep Cynthia Higgins.

In July, 2015, a three member FINRA arbitration panel issued a $61,000 binding arbitration award against Legend Securities for conduct related to two of their registered representatives Michael Mariani and Jason Klabal.

The underlying matter involved allegations that Legend Securities permitted a customer’s account to be churned, breached its fiduciary duty towards the Claimants, and failed to supervise brokers Mariani and Klabal. The award included reimbursement of $15,000 for expert witness fees and $5,000 as sanctions for discovery violations.

As a result of this award The Law Office of David Liebrader has opened an investigation into Legend Securities.

In March, 2015, a three member FINRA arbitration panel sitting in Jackson, Mississippi issued a $1,292,000 binding arbitration award against Lanis Noble and Stifel Nicolaus & Co. for violations in their Ridgeland, MS office.

The underlying matter involved allegations that Lanis Noble and Stifel Nicolaus mismanaged a customer account, breached fiduciary duties, failed to follow industry rules and standards and violated Mississippi and Federal Securities Laws. The causes of action pertained to Noble and Stifel’s’ use of margin in the customer’s account as well as the purchases of SunLife and ManuLife variable annuities, and of a Friedman Billings Ramsey REIT.

After an eleven day arbitration hearing from December 2014 through February, 2015, the arbitration panel rendered their decision and awarded the customers $1,292,342 in compensatory damages, and $250,000 in attorney’s fees against Stifel Nicolaus and Lanis Noble.

In July, 2015, a three member FINRA arbitration panel sitting in Detroit Michigan issued a $40,000 binding arbitration award against Tony Manaia and Intervest International Equities for violations in their Bloomfield Hills Michigan office.

The underlying matter involved allegations that Tony Manaia and Intervest International mismanaged a customer account, breached fiduciary duties, made unsuitable investments, failed to follow industry rules and standards and violated the Michigan Securities Laws. The securities involved in the case included Mammoth Horizon, Mammoth Destiny and Medical Capital Funding V aka “Med Cap.”

After a four day arbitration hearing in May, 2015, the arbitration panel rendered their decision and awarded the customers $40,000 in compensatory damages against Intervest International and Tony Manaia.

In July, 2015, a three member FINRA arbitration panel sitting in Jackson, MS issued a $2,382,851 binding arbitration award against Fred Brister and Morgan Stanley for violations in their Ridgeland, MS office.

The underlying matter involved allegations that Fred Brister and Morgan Stanley mismanaged several customer’s accounts, breached fiduciary duties, failed to supervise, failed to follow industry rules and standards and violated the Mississippi Securities Laws. The securities involved in the case included Oculus Innovative, ProShares Ultra ETFs, Morris Innovative, Legend International and Southern Financial Group.

After a 20 day arbitration hearing stretching from November 2014 to May 2015, the arbitration panel rendered their decision and awarded the customers $1,522,978 in compensatory damages; $104,000 in punitive damages; $609,190 in attorney’s fees; $78,733 in expert witness fees; and $68,350 in costs. The panel also awarded interest at 2.5% from the time of the investments. Brister and another Respondent, Stephen Mark Wyatt requested expungement of the claim from their industry record, and the panel denied those requests.

In October, 2015, a sole public arbitrator convened a FINRA arbitration proceeding, and after receiving evidence issued an award against Kevin Fifer and Regis Asset management and Capital City Securities in the amount of $32,312.

The underlying matter involved claims for breach of contract; breach of fiduciary duty; and excessive trading or churning. The customers alleged that they transferred their accounts to Capital City with the understanding that they would be invested in safe conservative holdings, but once the accounts were transferred, Kevin Fifer liquidated their accounts and re-invested their money in various speculative and risky equities.

The customers also alleged that in 2011, Fifer started a new trading strategy of investing their entire portfolio into one stock and then selling all of the positions within a week, causing losses in their account. After considering the evidence the arbitrator ordered Kevin Fifer and Capital City Securities to pay the customer for 100% of her losses, interest from 2010, and also awarded her $5,000 in attorney’s fees.

In January, 2016, a three member FINRA arbitration panel issued a $346,881 binding arbitration award against Wells Fargo Advisors LLC for conduct related to one of its registered representatives, Zak Chivi.

The underlying matter involved claims by one of Zak Chivi’s customers that between 2011 and 2013 there were an excessive number of transactions executed in the customer’s account. After hearing evidence over four days at an arbitration hearing held in Newark N.J. the panel handed down the award for $346, 881. The panel also denied Zak Chivi’s request for expungement. In the claim, the Claimant brought claims for misrepresentations, breach of fiduciary duty, violations of FINRA rules and violations of the New Jersey securities Act. Zak Chivi was not named as a Respondent, and the award was issued solely against his employer, Wells Fargo Advisors.

As a result of this award The Law Office of David Liebrader has opened an investigation into Wells Fargo Advisors and Zak Chivi

In February, 2016, a three member FINRA arbitration panel issued a $450,000 binding arbitration award against Unionbanc Investment Services for conduct related to one of their former registered representatives Cynthia Higgins.

The underlying matter involved allegations that Higgins made unsuitable investments, over concentrated the accounts’ assets, and failed to disclose material facts. The claims made were for negligence, breach of fiduciary duty and failure to supervise.

As a result of this award The Law Office of David Liebrader has opened an investigation into Unionbanc and registered rep Cynthia Higgins.