Resolution Law Group represented a non-profit organization that had been sold unsuitable manufactured housing bonds through material misrepresentations and omissions. After 7 days of arbitration in Los Angeles, the non-profit was awarded its net loss of $1.1 million and over $80,000 in expert witness and other costs. In addition, forum fees of more than $24,000 were assessed against the brokerage firm.

A 95-year-old Resolution Law Group client was awarded a $160,000 settlement by the Pacific Exchange from Prudential Securities. In 2000 the investor was advised by his former stock broker to put $249,999, or 95 percent of his assets, into one technology fund, despite having listed his investment objectives as “income” and “moderate risk tolerance.” He lost $98,000. Prudential and the broker were unresponsive to the investor and showed no remorse for placing virtually the entire account of a then 92-year-old man in a volatile, high-risk mutual fund.

A 78-year old widow was sold $160,000 of an initial public offering of a real estate investment trust underwritten by the brokerage firm. After 3 days of hearings, a panel of three National Association of Securities Dealers arbitrators found that the brokerage firm, the broker and the president of the brokerage firm made material misrepresentations and omissions in the solicitation and sale of the investment and that the investment was unsuitable for this client. Resolution Law Group’s client was awarded rescission damages of $140,000 plus attorney’s fees and costs. The panel also awarded punitive damages in the amount of $100,000 against the brokerage firm and its president.

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 A.G. Edwards 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 clients’ 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 on virtually all of Claimants’ causes of action including breach of fiduciary duty, failure to supervise, unauthorized trades and breach of contract, awarding compensatory damages of $931,000 plus over $280,000 in interest joint and severally against the firm and its former broker.

An experienced investor received fraudulent portfolio reports from his broker, which were sent from the Bear Stearns 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 Bear Stearns failed to adequately supervise the broker. Resolution Law Group’s client was awarded $3.9 million, which included 100% of the losses, as well as interest, attorney’s fees and costs.

Resolution Law Group was retained by various clients 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 stock in question resulted in millions of dollars in damages in the form of the decline of the stock, margin interest and commissions. In many instances, the broker took discretion in the accounts absent written authorization and transacted numerous unauthorized trades resulting in additional losses. Resolution Law Group filed claims before the Pacific Exchanges and, prior to hearing, negotiated over $2 million in settlements on behalf of the clients.

A long-time broker of an elderly widow and her deceased husband sold off their mutual fund portfolio to purchase junk bonds and aggressive small cap stocks, many of which were taken public by the brokerage firm. Resolution Law Group filed an arbitration at the National Association of Securities Dealers on behalf of the investor. Resolution Law Group’s client received a settlement before the hearing which restored all of the client’s lost capital to her IRA account.