Zabara v FMS Bonds $218,600 Puerto Rican Bond Award
In August 2016, a FINRA panel in Boca Raton, FL ordered FMS Bonds to pay the Claimant $218,600 in compensatory damages for breach of fiduciary duty, breach of contract and negligent supervision. The subject investments were individual Puerto Rico municipal bonds sold to a U.S. client. Dr. O'Neal testified on portfolio concentration, default risk and suitability of the Puerto Rico muni bonds.
$361,629 Ledesma v Popular Securities PR Bond and Fund Award
In July 2016, a FINRA panel in San Juan, PR ordered Popular Securities to pay the Claimant at least $361,629 including compensatory damages, attorneys' fees, expert witness fees and costs. The subject investments included Puerto Rico closed end bond funds co-managed by UBS and Popular and individual Puerto Rico municipal bonds. Dr. McCann testified on liability and damages.
$418,262 De Jesus v UBS of Puerto Rico Award
In June 2016, a FINRA arbitration panel in San Juan, PR ordered UBS Financial Services and UBS Financial Services of Puerto Rico to pay at least $418,262 in compensatory damages based on a comparison to a portfolio of 80% taxable US bonds and 20% US stocks, attorneys' fees, costs including expert witness fees, prejudgment interest and forum fees. Dr. McCann testified on liability and damages over UBS Puerto Rico's sale of UBS Puerto Rico municipal bond closed end funds.
$12.2 Million Judgment in Maybank v BB&T Affirmed
Last week the Supreme Court of South Carolina affirmed an award of $12,199,306 over the sale of variable prepaid forward (VPF) contracts. The trial court's Order is available on our website. The jury had awarded $3.1 Million in actual damages and $5 Million in punitive damages. The trial court found the jury awards appropriate and that BB&T's conduct was willful and knowing and trebled the actual damages to $9.3 Million. The trial court also awarded $2,899,306 in attorneys' fees and costs. The Supreme Court affirmed the award of actual damages, trebled and attorneys' fees but voided the jury's award of punitive damages. Dr. McCann testified in the underlying trial on liability and damages and his testimony is discussed in both the trial court and Supreme Court Opinions.
Melton et al v. Morgan Stanley Smith Barney - $3.6 Million Award
In June 2015, a FINRA arbitration panel awarded $3,586,989 in damages plus to the Claimants. Dr. O'Neal testified on liability and damages for the Claimants.
Polito v Centaurus Financial Nontraded REIT Award
In June 2015, a FINRA panel in Albuquerque, NM ordered Centaurus Financial, Inc. to pay the Claimant $150,000 plus all hearing fees after reasoned findings that "the investments Hashemian recommended while at Centaurus were not suitable", that Centaurus was responsible for Hashemian's actions which "constituted fraudulent and negligently made misrepresentation and omitted material information in the sale of investments" and that "Centaurus failed to supervise Hashemian is a proper and reasonable manner". The subject investments included non-traded REITs and equity-indexed annuities. Craig McCann testified on liability and damages.
$470,000 Melendez Ramos v UBS of Puerto Rico Award
In March 2016, a FINRA arbitration panel in San Juan, PR ordered UBS Financial Services and UBS Financial Services of Puerto Rico to pay $470,000 in compensatory damages, interest, attorneys' fees and costs. Dr. McCann testified on liability and damages over UBS Puerto Rico's sale of UBS Puerto Rico municipal bond closed end funds.
$1.2 Million Ramos v UBS of Puerto Rico Award
In March 2016, a FINRA arbitration panel in San Juan, PR ordered UBS Financial Services and UBS Financial Services of Puerto Rico to pay $1.2 Million in compensatory damages and expert costs. The panel also ordered the Claimant to pay $156,433 in connection with a debit balance. Dr. McCann testified on liability and damages over UBS Puerto Rico's sale of UBS Puerto Rico municipal bond closed end funds.
Wiles v Questar Capital - $135,000 non-traded REIT Award
In March 2016, a FINRA arbitration panel in Louisville, KY ordered Questar Capital to pay $134,533 in compensatory damages and costs over the sale of Behringer Harvard REIT 1 non-traded REIT. Dr. Henderson testified on liability and damages over Questar's sale of the non-traded REIT to the Claimant.
Dr. Henderson's "An Empirical Analysis of Non-traded REITs" forthcoming in the Journal of Wealth Management and SLCG's blog posts on non-traded REITs can be found on our website.
Silipigno v Raymond James - $800,000 Churning Award
In February 2016, a FINRA arbitration panel in Albany, NY ordered Raymond James to pay at least $791,847 in compensatory damages and interest after a hearing wherein the Claimant alleged Respondent churned the Claimant's accounts. Dr. McCann testified to the egregiousness of the churning and damages on behalf of the Claimant.
