Allegations
SUITABILITY; MISREPRESENTATION; OMISSION OF
FACTS; ACCOUNT RELATED FAILURE TO SUPERVISE
$102,000 ORIGINAL PRINCIPAL AND $25,000 INCOME LOSS, PRE AND POST AWARD INTEREST,COSTS, FEES AND PUNITIVE DAMAGES.
CHRISTOPHER WEIL WAS CHAIRMAN OF CHRISTOPHER WEIL AND COMPANY, INC ("CWC") IN 1986-87. MR. P HARTWELL (ALSO NAMED) WAS A REG REP OF CWC; MR. R LANE (ALSO NAMED) WAS THE PRESIDENT OF CWC; MR. W. HUGHES (ALSO NAMED AND THEN RELEASED) WAS AFFILIATED WITH THE OWNER OF CWC. IN ADDITION HARTWELL, LANE AND WEIL WERE NASD REGISTERED IN 1986-87. WEIL WAS NAMED BECAUSE HE WAS A "CONTROL PERSON".
DURING '86 & '87 HARTWELL, IN HIS CAPACITY AS A CWC REP, SOLD THE COMPLAINTANTS A NUMBER OF DIFFERENT INVESTMENTS. ON 2/11/93 THE COMPLAINTANTS FILED FOR AN ARBITRATION CLAIMING THAT SOME OF THE INVESTMENTS SOLD TO THEM BY HARTWELL WERE UNSUITABLE AND INAPPROPRIATE. THEY SOUGHT RECISION OF TRANSACTIONS IN THE AMOUNT OF $102,000(PRINCIPAL) AND $50,000 (INCOME LOSS, PRE AND POST AWARD INTEREST, COSTS, FEES AND PUNITIVE DAMAGES).
WEIL ASSERTED THAT HE (1) NEVER MET THE COMPLAINTANTS (2) NEVER HAD ANY INVOLVEMENT WITH THEM (3) NEVER HAD ANY INVOLVEMENT WITH ANY INVESTMENT RECOMMENDATIONS MADE TO THEM AND (4) NEVER SUPERVISED HARTWELL. THESE ASSERTIONS WERE NOT CHALLENGED BY THE COMPLAINTANTS.
ON 03/10/1994 THE NASD DENIED THE CLAIM FOR RECISION AND AWARDED $41,440 IN COMPENSATORY DAMAGES AND $25,000 IN PUNATIAVE DAMAGES. NASD ASSESSED $6,750 AS FORUM FEES. THE AWARD AND FEES WERE THE JOINT AND SEVERAL RESPONSIBILITY OF THE CLAIMANTS.
MR. WEIL AGREED TO PAY, AS HIS SHARE OF THE TOTAL AWARD, THE SUM OF $3,359.54 WHICH HE DID.
THE MATTER WAS THEN CLOSED.
MR. WEIL AGREED TO PAY, AS HIS SHARE OF THE TOTAL AWARD, THE SUM OF $3,359.54
Damage Amount Requested
$152,000.00
Damages Granted
$66,440.00
Broker Comment
AWARDED $41,440 COMPENSATORY DAMAGES AND $25,000
PUNITIVE DAMAGES
CHRISTOPHER WEIL WAS CHAIRMAN OF CHRISTOPHER WEIL AND COMPANY, INC ("CWC") IN 1986-87. MR. P HARTWELL (ALSO NAMED) WAS A REG REP OF CWC; MR. R LANE (ALSO NAMED) WAS THE PRESIDENT OF CWC; MR. W. HUGHES (ALSO NAMED AND THEN RELEASED) WAS AFFILIATED WITH THE OWNER OF CWC. IN ADDITION HARTWELL, LANE AND WEIL WERE NASD REGISTERED IN 1986-87. WEIL WAS NAMED BECAUSE HE WAS A "CONTROL PERSON".
DURING '86 & '87 HARTWELL, IN HIS CAPACITY AS A CWC REP, SOLD THE COMPLAINTANTS A NUMBER OF DIFFERENT INVESTMENTS. ON 2/11/93 THE COMPLAINTANTS FILED FOR AN ARBITRATION CLAIMING THAT SOME OF THE INVESTMENTS SOLD TO THEM BY HARTWELL WERE UNSUITABLE AND INAPPROPRIATE. THEY SOUGHT RECISION OF TRANSACTIONS IN THE AMOUNT OF $102,000(PRINCIPAL) AND $50,000 (INCOME LOSS, PRE AND POST AWARD INTEREST, COSTS, FEES AND PUNITIVE DAMAGES).
WEIL ASSERTED THAT HE (1) NEVER MET THE COMPLAINTANTS (2) NEVER HAD ANY INVOLVEMENT WITH THEM (3) NEVER HAD ANY INVOLVEMENT WITH ANY INVESTMENT RECOMMENDATIONS MADE TO THEM AND (4) NEVER SUPERVISED HARTWELL. THESE ASSERTIONS WERE NOT CHALLENGED BY THE COMPLAINATNTS.
ON 03/10/1994 THE NASD DENIED THE CLAIM FOR RECISION AND AWARDED $41,440 IN COMPENSATORY DAMAGES AND $25,000 IN PUNATIAVE DAMAGES. NASD ASSESSED $6,750 AS FORUM FEES. THE AWARD AND FEES WERE THE JOINT AND SEVERAL RESPONSIBILITY OF THE CLAIMANTS.
MR. WEIL AGREED TO PAY, AS HIS SHARE OF THE TOTAL AWARD, THE SUM OF $3,359.54 WHICH HE DID.
THE MATTER WAS THEN CLOSED.
MR. WEIL AGREED TO PAY, AS HIS SHARE OF THE TOTAL AWARD, THE SUM OF $3,359.54