Saturday, January 9, 2010

Triple Damages

In a rarity, an arbitrator last month cited elder abuse in tripling the damages a discount securities firm must pay a 95-year-old client.

A Financial Industry Regulatory Authority panel awarded the elderly investor, David Wolfson, $1.6 million in a case involving StockCross Financial Services Inc. of Beverley Hills, Calif. Mr. Wolfson accused StockCross, along with two of its brokers, of misconduct and self dealing. He claimed the brokers recommended and solicited unsuitable and overly risky investments that were actively traded on margin.

The claim, which was filed in March, also alleged that StockCross and the two brokers, Thomas B. Cooper and Peter L. Boorn, put Mr. Wolfson’s home at risk. According to the complaint, they “encouraged and invited Mr. Wolfson to leverage the equity in his home with a reverse-mortgage transaction to utilize as investment capital.”

While many arbitration claims charge elder abuse, it is extremely rare for Finra panel to cite such abuse in an award, said David Liebrader, an attorney that represents both investors and brokers against securities firm. Under California law, elder abuse entitles plaintiffs triple the damages.

Full Article and Source:
Discount Broker Slapped With Triple Damages in Rare Elder Abuse Award

3 comments:

  1. That's the best news I heard all day! But I'd rather hear that they were prosecuted.

    ReplyDelete
  2. My thought exactly - triple damages might get the perp's attention.

    ReplyDelete