Case Results

Erez Law’s mission is to recover investment losses from brokerage firms. Erez Law has recovered investment losses of over $125 million from brokerage firms and has successfully represented over 1000 clients. We have the experience, strategies and resources to maximize recoveries for defrauded investors through trial or negotiation. Erez Law has tried over 40 cases to verdict and consistently achieved exceptional results for its clients and is regarded as a preeminent trial firm.

$11.1m

Case no. 10-04929

Nasirdin H. Madhany and Zeenat N. Madhany, individually and as trustees of the Zeenat Madhany Revocable Trust and Dr. Nasirdin H. Madhany and Zeenat N. Madhany as Trustees of the Nasirdin H. Madhany Revocable Trust v. Scott Andrew King and Citigroup Global Markets, Inc. f/k/a Smith Barney

Erez Law obtained a verdict of over $11.1 million, which included all the principal losses plus ordered the bank to indemnify the claimants for a $10 million state court judgment entered against them, for investors who sustained losses in a failed real estate development recommended by their Smith Barney broker who sold away in violation of FINRA rules and industry rules. Brokers are prohibited from recommending investments that are not approved by their brokerage firms, an illicit practice called “selling away”. The recovery represents 100% of the investors’ losses. The award is notable in that the arbitrators made Smith Barney liable for the amount the investors owed Wachovia Bank under a $10 million dollar final judgment against the investors who were guarantors of a loan made in connection with the failed development.

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$6.2m

settlement

$6.2m recovered for ultra high net worth individual against major brokerage firm

Erez Law recovered $6.2 million in 2017 against a major brokerage firm for an ultra high net worth investor. The claims were based on unsuitable recommendations to invest in proprietary closed-end funds and to concentrate in one asset class. Erez Law brought claims for negligence, breach of fiduciary duty, fraud and negligent supervision. The settlement is notable for the size of the settlement and percentage of losses recovered for an ultra high net worth individual.

$5.7m

settlement

$5,700,000 recovery for a group of investors

$5,700,000 recovery for a group of investors alleging they were defrauded in unauthorized trading and misuse of margin in the purchase of mortgage backed securities (aka CMOs).

$5m

settlement

$5MM recovery for high net-worth investor from major brokerage firm

Erez Law recovered $5 million in 2017 against a major brokerage firm for an ultra high-net worth investor. The claims were based on unsuitable recommendations to invest in proprietary closed-end funds and over concentration in one asset class. In addition, Erez Law filed allegation involving the improper use of bank loans to invest in securities which was a practice not permitted by the brokerage firm. Erez Law filed claims for negligence, breach of fiduciary duty, fraud, negligent supervision, breach of contract and violation of the local anti-fraud statutes. The settlement is notable for the size of the settlement and the high percentage of recovery based on the amount sought.

$4.5m

Case no. 12-01019

Banco National de Mexico S.A., Institution de Banca Multiple, Fiduciary Division, as Trustee of the Trust Agreement Numbered 15437-5 v. Morgan Stanley & Co., Inc.

Erez Law represented Banco National de Mexico, S.A. ("Banamex") as trustee of a trust which is beneficially owned by a Mexican family against Morgan Stanley and recovered $4,500,000. The FINRA arbitration panel made a finding of negligence and negligent supervision. The claim was based on Banamex's allegation that Morgan Stanley caused a cross pledge to be recorded on its accounts with Bank Morgan Stanley, a Morgan Stanley affiliate, without its authorization. The cross pledge amounted to a guaranty on loans made by Bank Morgan Stanley to a third party. When the third party's investments declined significantly in 2008-2009, Bank Morgan Stanley seized approximately $5,200,00 from the Banamex accounts based on an unauthorized cross pledge. The award is significant in that it is a very large FINRA arbitration award and represents the recovery of nearly all of the funds taken from Banamex. The trial lasted eight days and was defended the Greenberg Traurig law firm which represented Morgan Stanley.

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$4.2m

FINRA Arbitration Number 16-00715

Puerto Rico Investors v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc.

Erez Law represented four families and a corporation owned by the four families that sustained significant losses primarily in Puerto Rico bonds and in UBS proprietary closed-end funds to a lesser extent. The final hearing lasted 13 days. Ramon “Cholo” Almonte was the UBS financial advisor. The Claimants alleged that UBS recommended an unsuitable and over-concentrated investment in high risk Puerto Rico bonds and funds. The FINRA panel awarded $4,2000,000 as well as costs in an amount of no less than $85,847. The Award is significant in that it represents nearly 100% of the investors’ capital losses and is significantly in excess of the net-out-pocket losses.

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$3.9m

settlement

$3,900,000 recovery for an octogenerian retiree alleging fraud

$3,900,000 recovery for an octogenerian retiree alleging fraud, undue influence by the broker in accepting gifts and inserting themself in the client's estate planning, and failure to timely hedge a large stock position.

$3.2m

settlement

$3,200,000 recovery for investors

$3,200,000 recovery for investors in variable annuity products.

$3 million

settlement

Recovered $3 million from a major brokerage firm

Recovered $3 million from a major brokerage firm for clients who lost money in Puerto Rico bonds and Puerto Rico focused closed-end funds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

$2.8 million

settlement

Recovered $2.8 million from a major brokerage firm

Recovered $2.8 million from a major brokerage firm for a client who lost money investing in Puerto Rico focused closed-end funds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

$2,545,000

Case no. 14-00304

Puerto Rico Investors v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc.

Erez Law represented a retired couple that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds. The couple were customers of Jose "Whopper" Ramirez who has been fired from UBS and has received a Wells Notice from the S.E.C. in which it indicated that it recommended fraud charges be brought against Mr. Ramirez. The Claimants alleged that Mr. Ramirez recommended an over concentrated position in the UBS Puerto Rico funds and that he recommended the illicit use of a non-purpose loan to invest in securities. The FINRA panel awarded the Claimants $2,545,000.

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$2.5m

settlement

$2,500,000 recovery for an investor

$2,500,000 recovery for an investor in structured products.

$2.2m

settlement

$2,200,000 recovery for investors

$2,200,000 recovery for investors in collateralized debt obligations.

$2m

settlement

$2,000,000 recovery for an institutional investor

$2,000,000 recovery for an institutional investor, a hedge fund, against a hedge fund manager, in federal court, alleging breach of fiduciary duty in managing hedge fund investments.

$1,880,000

Case 17-00952

Juan Medero-Fernandez, Individually and as Beneficiary of the Juan Medero Fernandez Retirement Plan and Maria Navedo v. UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico

Erez Law represented an elderly Puerto Rico investor and his wife that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds as well as losses as in Puerto Rico bonds. The final hearing lasted eight days. David Lugo was the broker for the investors at UBS. The Claimants alleged that Mr. Lugo and UBS recommended an over concentrated and unsuitable position in the UBS Puerto Rico funds and Puerto Rico bonds. The FINRA panel awarded the Claimants $1,880,000. The Award is significant in that the investors’ net out-of-pocket losses were $1.1M and the award is significantly in excess of the net out-of-pocket losses.

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$1,376,463

Case no. 11-01948

Robert Billings and Michele Billings v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

Erez Law recovered $1,376,463 against Merrill Lynch for investors who invested in Fannie Mae preferred shares. A Merrill Lynch broker recommended Fannie Mae preferred shares to his client in late July 2008 and within 45 days the company was in conservatorship and their investment was virtually wiped out. The award is notable for its size and is believed to be the largest Fannie Mae preferred recovery for any public investors. Merrill Lynch vigorously defended the case, The FINRA arbitration panel that Merrill Lynch breached its fiduciary duties to their clients.

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$1,250,000

settlement

$1,250,000 recovery in an NASD arbitration

$1,250,000 recovery in an NASD arbitration for an investor, alleging fraudulent recommendations using stop-losses.

$1.1m

08-01465

Cobb vs. Morgan Keegan & Co. (FINRA)

The Firm obtained a $1.1 million dollar verdict against Morgan Keegan, in a case alleging securities fraud over the sale of Morgan Keegan closed-end and open-end mutual funds, known as RMK Mult-Sector High Income Fund (RHY), RMK Advantage Income Fund (RMA), RMK Select High Income (MKHIX), RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF). The verdict and subsequent recovered amounted to 80% of the investor's net losses.

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$1,080,000

Case no. 08-03677

Miniaci et al vs. Morgan Keegan & Co.

The Firm obtained a $1,080,00 million dollar verdict against Morgan Keegan, in a case alleging securities fraud over the sale of Morgan Keegan mutual funds. The verdict and subsequent recovery amounted to 100% of the investor's net losses.

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$1,046,556

Case no. 14-01450

WRI Vending Machines, Inc. v. Santander Securities, LLC and Oriental Financial Services Corp.

Erez Law obtained an award against Oriental Financial Services Corp. (“Oriental”) for $1,046,556. The claim against Santander Securities., LLC was settled prior to the commencement of the final hearing. The case involved a claim by an investor against Oriental related to the recommended use of margin to invest in Puerto Rico bonds and agency bonds. The unsuitable and speculative investment strategy led to margin calls and forced liquidations in 2013. The case is notable for the arbitrators’ award of attorney’s fees, costs and interest which were damages sought under the Puerto Rico Uniform Securities Act.

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$957,796

Case no. 15-01774

Ana Elisa Ciordia-Robles as Beneficiary of the AECR Living and Grantor Trust v. UBS Financial Services Inc.

Erez Law represented a beneficiary of a trust that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds as well as losses as in Puerto Rico bonds. Carlos Rodriguez was the broker that for the trust at UBS. The Claimant alleged that Mr. Rodriguez and UBS recommended an over concentrated and unsuitable position in the UBS Puerto Rico funds and Puerto Rico bonds. The FINRA panel awarded the Claimant $957,796.59. The FINRA Panel awarded attorney's fees under the Puerto Rico Uniform Securities Act as well as costs.

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$900,000

settlement

$900,000 recovery in an NASD arbitration

$900,000 recovery in an NASD arbitration for an international businessman, alleging negligent advice in a financial plan and the misuse of currency trading on margin as a hedge against the account.

$900,000

settlement

$900,000 recovery for a group of investors

$900,000 recovery for a group of investors alleging they were defrauded by the same broker in a purported guaranteed-investment scheme.

$861,517

Case no. 16-01829

Eric Kaplan and Bonnie Kaplan v. Oppenheimer & Co., Inc.

Erez Law represented a Florida couple in their 60s that sustained significant losses in oil stocks in their Oppenheimer brokerage account and with Evan Fischer their financial advisor. The Claimants alleged that the oil stocks were high risk, unsuitable and that they were presented to them as conservative investments that would preserve their principal and provide income. When the price of oil declined in 2014-2016, the oil companies largely filed for bankruptcy or were restructured. Claimants lost nearly their entire investments in the oil stocks that made up a large percentage of their portfolio. Jeffrey Erez, Esq. of Erez Law tried the case in Boca Raton, Florida over 9 days. Oppenheimer vehemently denied liability. The FINRA panel awarded the Erez Law clients $800,000 as well as $61,517 for costs incurred in the case. The Award is significant in that the Claimants were able to recover significantly more than their net out-of-pocket losses in the oil stocks and a high percentage of their capital losses in these investments.

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$850,000

Case no. 05-02371

$850,000 verdict against Morgan Stanley for a retired, elderly World War II hero in a mutual fund fraud case

$850,000 verdict against Morgan Stanley for a retired, elderly World War II hero in a mutual fund fraud case, including $600,000 in well-managed portfolio damages and $250,000 in punitive damages, where the net out of pocket losses were $370,000.

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$850,000

settlement

$850,000 recovery following an NASD arbitration trial

$850,000 recovery following an NASD arbitration trial for two physicians who were give negligent advice on how to hedge or protect a large concentrated stock position.

$850,000

settlement

$850,000 recovery for a group of investors

$850,000 recovery for a group of investors in a principal guaranteed mutual fund investing program; significantly, the firm made the recovery against a brokerage firm that served as the introducing firm for a failed broker dealer.

$831,000

Case no. 11-03927

Russell Rupp and Linda Rupp v. RBC Capital Markets, LLC

Erez Law recovered $831,000 including $250,000 in punitive damages, prejudgment interest and costs for investors who sustained losses in Lehman Brothers preferred stock, PowerShares Financial Preferred and Alpine Dynamic Dividend Fund/Alpine Total Dynamic Dividend Fund. The Award is notable for awarding full losses on Lehman Brothers preferred stock and PowerShared Financial Preferred as well as prejudgment interest. The arbitrators’ award of punitive damages is also rare and was awarded based on findings that the broker falsified the investors' questionnaire and misrepresented that Lehman Brothers was backed by the US Government.

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$635,000

settlement

Recovered $635,000 from a major brokerage firm

Recovered $635,000 from a major brokerage firm for a client who lost money investing in Puerto Rico bonds using an extensive level margin. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The arbitration case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

$522,873

Case no. 10-04056

Donald A. Hausfeld and Judith A. Hausfeld v. Morgan Keegan & Company, Inc.

Erez Law recovered a total of $522,873 inclusive of interest, attorneys’ fees and costs against Morgan Keegan in connection with its sale of the RMK Advantage Income Fund. The panel awarded attorneys’ fees based upon a finding that Morgan Keegan violated the Georgia Securities Act. Notably, the panel awarded interest from November 2004, when our client made their investment in the RMK Fund through the date of the final hearing in April 2012.

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$430,000

Case no. 08-01333

Phillip Richardson v. Morgan Keegan & Co.(FINRA)

The Firm obtained a $430,000 verdict against Morgan Keegan, in a case alleging securities fraud over the sale of Morgan Keegan open-end mutual funds, known as RMK Select High Income (MKHIX), RMK Select Intermediate Fund. The verdict represented 126% of the net out of pocket losses.

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$314,000

Case no. 10-03532

Russell Stephen Tarrant v. Kovack Securities, Inc.

The Firm obtained total damages of $314,317 for an investor who lost $100,000 when the broker engaged in "selling away". Selling away occurs when a broker sells an unapproved investment to his customer. The arbitrators awarded the extraordinary relied of punitive damages due to the "egregious behavior on the part of the broker and the apparent lack of any system of supervision" by Kovack Securities.

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$290,999

Case no. 11-04247

Scott Stephens, as Trustee of the Wilbert Joseph Stephens, Jr. Testamentary Trust #1 et al. v. Morgan Keegan & Company, Inc.

Erez Law recovered $290,999 for investors who sustained losses in the closed-end RMK bond funds managed by James Kelsoe. The award is significant in that it represents a recovery of 100% of the investors’ losses. The investors filed claims based upon the unsuitability of the investments as well as misrepresentations and omissions in connection with the RMK Funds. The brokerage firm denied liability and contended that the investors wanted high risk investments, that the risks were disclosed and that the investors should have sold immediately when the funds declined in value. The arbitrators unanimously rejected the brokerage firms’ arguments and found for the investors.

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$286,000

Case no. 08-00574

Humphries v. Morgan Keegan & Co.

Humphries v. Morgan Keegan & Co. (FINRA). The Firm obtained a $286,000 verdict against Morgan Keegan, in a case alleging securities fraud over the sale of a Morgan Keegan open-end mutual fund, known as the RMK Select Intermediate Fund. The verdict including a finding that Morgan Keegan violated the Mississippi Securities Act and represented a recovery of all net out-of-pocket losses, interest, and attorneys fees and costs.

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$250,000

Case no. 10-02971

John Murphy v. Citigroup Global Markets Case

Erez Law recovered $250,000 for an investor who purchased $250,000 of Fannie Mae preferred Series T in the public offering in May 2008. A Citigroup/Smith Barney broker sold the preferred shares to John Murphy, a retiree living in South Florida and four months later the US Government put the company in conservatorship and the investment was rendered virtually worthless. Mr. Murphy's out of pocket losses were $230,000. The Panel awarded in excess of out of pocket which is a rarity. The Panel also made a specific finding that the broker violated the fiduciary duties owed to Mr. Murphy.

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$250,000

settlement

Recovered $250,000 for an investor against a brokerage firm

Recovered $250,000 for an investor against a brokerage firm related to losses in real estate investment trusts (“REITs), and other real estate related private investment funds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The arbitration case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

$195,000

Case no. 10-02526

Fornell v. Morgan Keegan Firm

Fornell v. Morgan Keegan Firm obtained an Award against Morgan Keegan for $195,000 plus costs of $20,000 and attorney's fees for an investor who had out of pocket losses of $105,000 in the RMK funds. The Award of compensatory damages of $195,000 was for "well managed damages" which are damages intended to put the investor in the position he would be in if invested in appropriate investments. The arbitration panel also made a finding that the broker was a co-trustee of the pension plan and as such awarded attorney's fees allowed under the ERISA statute.

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$190,000

Case no. 00-02317

Net losses were just $16,000

$190,000 verdict in a fraud case where the net losses were just $16,000.

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$143,000

settlement

Recovered $143,000 from a major brokerage firm

Recovered $143,000 from a major brokerage firm for a U.S. based investor that invested in Puerto Rico bonds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

$143,000

Case No. 12-01384

Mary Robin Tipton v. Merrimac Corporate Securities, Inc.

Erez Law represented Mary Robin Tipton, an Orlando area investor, in a FINRA arbitration proceeding against Merrimac Corporate Securities, Inc. (“Merrimac”) in which the FINRA arbitration panel ordered Merrimac to pay more than $143,000 in damages, including $60,000 in punitive damages, in connection with an illicit selling away scheme orchestrated by two former Merrimac employees. Selling away is a prohibited practice whereby a broker sells an investment that was not vetted or approved by the brokerage firm

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$100,000

Case no. 11-00726

Antietam Industries, Inc., William Warfel and Janice Warfel v. Morgan Keegan & Co., Inc.

Erez Law recovered punitive damages of $100,000, compensatory damages in the amount of $100,000, costs of $32,735 and the entitlement to attorneys’ fees against Morgan Keegan in connection with the sale of the RMK Funds. The award of punitive damages was based upon a finding that Morgan Keegan “was guilty if intentional misconduct or gross negligence in its communication to its broker and the Claimants [investors] of the true nature of the RMK Investments…” The arbitrators also awarded our clients the right to obtain attorneys’ fees under F.S. 57.105, because Morgan Keegan’s contract with all of its clients provides that Morgan Keegan is entitled to attorneys’ fees if it successfully defends a claim by its clients. Florida law renders Morgan Keegan’s one way attorneys’ fee provision reciprocal.

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$69,000

Case 10-02738 (2012 WL 188971)

Gubman v. GMS Group, LLC

The Firm obtained an award against GMS Group, LLC in the amount of $69,865.93, for an investor who suffered a principal loss of $55,231 in Main Street Natural Gas Ser 2008A Proj Rev bonds. The award represented 100% of the investor's principal loss ($55,231) plus the interest payments the investor would have received from the Main Street bonds if they had not defaulted. The Main Street bonds were closely linked to to the credit risk of Lehman Brothers. The FINRA arbitrator found that the brokerage firm was liable for breach of fiduciary duty, negligence, and breach of contract for failing to disclose the extent to which the investor would be exposed to the credit risk of Lehman Brothers.

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