Erez Law’s mission is to recover investment losses from brokerage firms. Erez Law has recovered investment losses of over $200 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.
Case Results
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.
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.
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.
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.
CASES 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.
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.
SETTLEMENT
Recovered $180,000 for losses in Northstar (Bermuda)
Recovered $180,000 from a brokerage firm for a Chinese client who sustained losses in Northstar (Bermuda) when Northstar (Bermuda) was placed in liquidation in Bermuda. The claim was based on the brokerage firm’s lack of due diligence and sales practice violations. The case was filed with FINRA Dispute Resolution.
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
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.
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.