Case Results

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.

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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.

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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

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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.

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CASE NO. 10-02738 (2012 WL 188971)

Gubman v. GMS Group, LLC

The Firm obtained an award against GMS Group, LLC in the amount of $69,865.93, for an investor who suffered a principal loss of $55,231 in Main Street Natural Gas Ser 2008A Proj Rev bonds. The award represented 100% of the investor’s principal loss ($55,231) plus the interest payments the investor would have received from the Main Street bonds if they had not defaulted. The Main Street bonds were closely linked to to the credit risk of Lehman Brothers. The FINRA arbitrator found that the brokerage firm was liable for breach of fiduciary duty, negligence, and breach of contract for failing to disclose the extent to which the investor would be exposed to the credit risk of Lehman Brothers.

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