CASE NO. 10-02971
Posted on Wednesday, July 1st, 2020 at 3:08 pm
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.