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THE CUSTOMERS ALLEGE UNSUITABLE INVESTMENT RECOMMENDATIONS AND MISREPRESENTATION AND OMISSION OF MATERIAL FACTS FROM 2011 TO 2014.
Settlement Amount
$45,000.00
Broker Comment
This matter was settled in order to avoid the cost and uncertainty of litigation. The Financial Advisor did not contribute
monetarily towards the settlement.
12/2/1982
Customer Dispute
Award / Judgment
Allegations
I WAS NAED AS A DEFENDANTIN A CIVIL LAWSUIT
ALONG WITH ANOTHER FC AND MERRILL LYNCH. THE CUSTOMER ALLEGED
VIOLATION OF FEDERAL SECURITIES LAW, BREACH OF FIDUCIARY DUTY
AND FRAUD. THE CLAIM WAS LATER AMENDED TO INCLUDE INTENTIONAL
AND NEGLIGENT INFLICATION OF EMOTIONAL DISTRESS. IN ESSENCE,
THE CLAIM ALLEGED UNSUITABLITY. THE CUSTOMER SOUGHT
APPROXIMATELY $65,000.00 IN DAMAGES.
Damage Amount Requested
$65,000.00
Damages Granted
$225,150.00
Broker Comment
JUDGEMNT ENTERED FOR COMPENSATORY DAMAGES
AGAINST ALL DEFENDENTS FOR $225,000.00 AND PUNITIVE DAMAGES OF
$150,000.00 AGAINST MERRILL LYNCH, PIERCE & SMITH, #1,050.00
AGAINST THE OTHER FC AND $150.00 AGAINST ME.
THE ORIGINAL COMPLAINT LETTER DATED 12/2/82 HAD
BEEN REVIEW BY MERRILL LYNCH AND IT WAS DETERMINED THAT AN
ADJUSTMENT WAS NOT WARRANTED. THE LOSSES IN [CUSTOMER'S]
ACCOUNT RESULTED FROM OPTIONS TRANSACTIONS. SUBSEQUENT TO THIS
COMPLAINT, IT WAS LEARNED THAT [CUSTOMER] HAD OVERSTATED HIS
NET WORTH AND HAD MAINTAINED OPTION ACCOUNTS WITH OTHER
BROKERAGE FIRMS WHICH WERE NOT DISCLOSED TO MERILL LYNCH. ALSO,
SUBSEQUENT TO THE JUDGEMENT BEING ENTERED, THE CHICAGO BOARD
OPTIONS EXCHANGE INVESTIGATED THIS MATTER AND CONCLUDED THAT NO
VIOLATIONS OF EXCHANGE RULES HAD BEEN COMMITTED.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.