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Broker Conducts Unauthorized Trading in an Investor’s Account
Hunsucker Goodstein & Nelson’s client was awarded $3.9 million, which included 100% of the losses, as well as interest, attorney’s fees and costs. An experienced investor received fraudulent portfolio reports from his broker, which were sent from a national brokerage firm’s branch office. The fraudulent portfolio reports were used by the broker to conceal his unauthorized trading in the investor’s account. After six days of hearings, the panel of three Pacific Exchange arbitrators found that the broker had committed fraud, and that the national brokerage firm failed to adequately supervise the broker. Read the decision>>
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Broker Gives Negligent Advice Regarding Incentive Stock Options and Transacts Unauthorized Trades
Hunsucker Goodstein & Nelson negotiated over $2 million in settlements. Our firm was retained by several employees of a major technology company who were solicited by a broker with a national brokerage firm to exercise thousands of incentive stock options of a high profile technology company on margin. The subsequent decline of the major technology company’s stock resulted in millions of dollars in damages, from the decline of the stock, margin interest, and commissions. In many instances, the broker took discretion in the accounts without written authorization and transacted numerous unauthorized trades resulting in additional losses.
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Improper Sale of Subprime Bonds to a Charity
Hunsucker Goodstein & Nelson represented a non-profit organization that had been sold unsuitable manufactured housing bonds through material misrepresentations and omissions. After seven days of arbitration in Los Angeles, the non-profit was awarded damages and costs of $1.2 million. Read the decision »
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Employee Stock Options Mishandled By Unauthorized Trading
A panel at the Pacific Exchange awarded over $1.2 million in damages and interest to four employees of Cisco Systems who incurred damages in their nation brokerage firm’s accounts as a result of their broker’s recommendation to exercise thousands of non-qualified Cisco stock options utilizing margin. The subsequent decline of the price of the Cisco shares resulted in hundreds of thousands of dollars in damages in the form of the decline of the stock and margin interest. The Pacific Exchange arbitration panel assessed liability for breach of fiduciary duty, failure to supervise, unauthorized trades and breach of contract. Read the decision »
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