Case Results

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.

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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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.

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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CASE NO. 15-03264

FINRA panel awards nearly 100% of investor’s capital losses and fees

Jose Pastrana v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc. Erez Law represented an investor that sustained significant losses primarily in proprietary UBS closed-end funds invested in Puerto Rico bonds. The financial advisor was Alexandra Amador who had herself sued UBS for misleading her in regards to the same funds. The Claimant alleged that UBS recommended an unsuitable and over-concentrated investment in high risk Puerto Rico funds. The FINRA panel awarded compensatory damages in the amount of $435,623, costs of $26,936, attorney’s fees of $102,000 and rescission of the current illiquid fund holdings. The Award is significant in that it represents nearly 100% of the investors’ capital losses, plus costs, attorney’s fees and rescission.

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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.

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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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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SETTLEMENT

Recovered $375,000 for selling away

Recovered $375,000 from a brokerage firm for a client who sustained losses when his broker recommended and implemented unapproved futures trading. This type of wrongful conduct by a broker is called “selling away.” The settlement amount represented a high percentage of the client’s losses. Erez Law brought claims based upon the unsuitability of the investment, misrepresentations, and failure to supervise, amongst other things. The case was filed with FINRA Dispute Resolution and was settled close to the start of the trial date.

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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