Former Royal Alliance Associates, Inc. Client Wins FINRA Arbitration for $187,000 For Losses From Junk Bonds and Leveraged ETFs
Posted on Wednesday, December 6th, 2017 at 10:57 am
In November 2017, a former client of Royal Alliance Associates, Inc. won an award in a FINRA arbitration for compensatory damages for $186,538, as well as $28,925.00 in costs, and $65,288 in attorneys’ fees for losses sustained from a predominantly risky strategy, largely comprised of unspecified junk bonds and leveraged ETFs. The investors were clients of financial advisor Bill Holubec (CRD# 1304064).
The causes of action included breach of contract and warranties, promissory estoppel, unfair trade and deceptive practices, violation of state securities statutes, violation of state fraud statutes, intentional and negligent misrepresentations of material fact, unjust enrichment, breach of fiduciary duty, breach of the covenant of good faith and fair dealing, negligence, gross negligence, and unsuitable investment advice. The FINRA arbitration hearing was conducted in Houston, Texas.
Holubec was registered with Royal Alliance Associates, Inc. in San Angelo, Texas from 1994 to May 2017. Holubec has also been the subject of one additional customer complaint, according to his CRD report:
March 2010. “Customer alleges that allocation of funds within a variable annuity were not suitable for him.” The customer sought $397,000 in damages and the case was settled for $49,750.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Royal Alliance Associates, Inc. may be liable for investment or other losses suffered by Holubec’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.