Case Results

Case no. 23-01288

Louis R. Deluca, Elizabeth Deluca and UBS, Inc. v Stifel, Nicolaus & Co., Inc.

Erez Law obtained an Award of 14.2M, including damages under Florida Statutes 517 – the Florida Securities Act as well as attorneys’ fees, costs, and $9 million in punitive damages. The claim was based on the sale of structured notes and the management of a discretionary account. Erez Law obtained critical text message evidence which supported our clients’ claims. Erez Law represents 15 clients of broker Chuck Roberts in 15 separate arbitration cases. The case is notable in that the arbitrators found a violation of the Florida Securities Act and awarded significant punitive damages against Stifel, Nicolaus & Co., Inc.

View Award

CASE NO. 10-04929

Nasirdin H. Madhany and Zeenat N. Madhany, individually and as trustees of the Zeenat Madhany Revocable Trust and Dr. Nasirdin H. Madhany and Zeenat N. Madhany as Trustees of the Nasirdin H. Madhany Revocable Trust v. Scott Andrew King and Citigroup Global Markets, Inc. f/k/a Smith Barney

Erez Law obtained a verdict of over $11.1 million, which included all the principal losses plus ordered the bank to indemnify the claimants for a $10 million state court judgment entered against them, for investors who sustained losses in a failed real estate development recommended by their Smith Barney broker who sold away in violation of FINRA rules and industry rules. Brokers are prohibited from recommending investments that are not approved by their brokerage firms, an illicit practice called “selling away”. The recovery represents 100% of the investors’ losses. The award is notable in that the arbitrators made Smith Barney liable for the amount the investors owed Wachovia Bank under a $10 million dollar final judgment against the investors who were guarantors of a loan made in connection with the failed development.

View Award

CASE NO. 16-02528

Pedro F. Diez and Carmen F. Macias et al. v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc.

Erez Law represented a Puerto Rican family that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds and Puerto Rico bonds. The Claimants alleged that UBS recommended an over-concentrated position in UBS Puerto Rico funds and Puerto Rico bonds. The FINRA panel awarded the Claimants $7,838,379 in a combination of compensatory damages, rescission damages, attorney’s fees and costs.

View Award

SETTLEMENT

$6,200,000 recovered for ultra high net worth individual against major brokerage firm.

Erez Law recovered $6,200,000 in 2017 against a major brokerage firm for an ultra high net worth investor. The claims were based on unsuitable recommendations to invest in proprietary closed-end funds and to concentrate in one asset class. Erez Law brought claims for negligence, breach of fiduciary duty, fraud and negligent supervision. The settlement is notable for the size of the settlement and percentage of losses recovered for an ultra high net worth individual.

SETTLEMENT

$5,700,000 recovery for a group of investors.

$5,700,000 recovery for a group of investors alleging they were defrauded in unauthorized trading and misuse of margin in the purchase of mortgage backed securities (aka CMOs).

SETTLEMENT

$5,000,000 recovery for high net-worth investor from major brokerage firm.

Erez Law recovered $5 million in 2017 against a major brokerage firm for an ultra high-net worth investor. The claims were based on unsuitable recommendations to invest in proprietary closed-end funds and over concentration in one asset class. In addition, Erez Law filed allegation involving the improper use of bank loans to invest in securities which was a practice not permitted by the brokerage firm. Erez Law filed claims for negligence, breach of fiduciary duty, fraud, negligent supervision, breach of contract and violation of the local anti-fraud statutes. The settlement is notable for the size of the settlement and the high percentage of recovery based on the amount sought.

CASE NO. 12-01019

Banco National de Mexico S.A., Institution de Banca Multiple, Fiduciary Division, as Trustee of the Trust Agreement Numbered 15437-5 v. Morgan Stanley & Co., Inc.

Erez Law represented Banco National de Mexico, S.A. (“Banamex”) as trustee of a trust which is beneficially owned by a Mexican family against Morgan Stanley and recovered $4,500,000. The FINRA arbitration panel made a finding of negligence and negligent supervision. The claim was based on Banamex’s allegation that Morgan Stanley caused a cross pledge to be recorded on its accounts with Bank Morgan Stanley, a Morgan Stanley affiliate, without its authorization. The cross pledge amounted to a guaranty on loans made by Bank Morgan Stanley to a third party. When the third party’s investments declined significantly in 2008-2009, Bank Morgan Stanley seized approximately $5,200,00 from the Banamex accounts based on an unauthorized cross pledge. The award is significant in that it is a very large FINRA arbitration award and represents the recovery of nearly all of the funds taken from Banamex. The trial lasted eight days and was defended the Greenberg Traurig law firm which represented Morgan Stanley.

View Award

FINRA ARBITRATION NUMBER 16-00715

Puerto Rico Investors v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc.

Erez Law represented four families and a corporation owned by the four families that sustained significant losses primarily in Puerto Rico bonds and in UBS proprietary closed-end funds to a lesser extent. The final hearing lasted 13 days. Ramon “Cholo” Almonte was the UBS financial advisor. The Claimants alleged that UBS recommended an unsuitable and over-concentrated investment in high risk Puerto Rico bonds and funds. The FINRA panel awarded $4,2000,000 as well as costs in an amount of no less than $85,847. The Award is significant in that it represents nearly 100% of the investors’ capital losses and is significantly in excess of the net-out-pocket losses.

View Award

SETTLEMENT

$4,035,000 recovered for four retired NFL football players against brokerage firm

Erez Law recovered $4,035,000 in 2019 against a brokerage firm for four retired NFL football players. The claims were based on unsuitable recommendations to invest in ETFs, inverse ETFs and leveraged ETFs as well as recommendations to concentrate in investments in the mining sector. The settlement is notable for the high percentage of losses recovered in the investments at issue in the case.

SETTLEMENT

$4,000,000 recovered for Ponzi scheme victims against clearing firm

Erez Law recovered $4 million in 2021 from a major brokerage firm for dozens of foreign investors. The claims were based on the brokerage firm acting as a clearing firm for an off-shore unregistered brokerage firm that was running a Ponzi scheme by selling fraudulent proprietary notes. Erez Law brought claims for negligence, breach of contract, and fraud amongst other claims related to the clearing firm’s failure to perform adequate due diligence on the introducing firm and for mispricing the Ponzi scheme related notes. The settlement is notable for its size and the significant recovery for a clearing firm claim.