Category Archives: Cases

Pon v. Shearson

NYSE Arbitration No. 2000-01748 Testifying expert for Claimant. Award in favor of Claimant: $1,000,000 + $250,000 punitive damages. Misrepresentation of investment performance and recommendation of unsuitable equity securities.]]>

Parker v. Goldberg

NASD Arbitration No. 94-02670 Testifying expert for Claimant. Award in favor of Claimant: $260,000 Registered investment advisor and its president made fraudulent representations to, and effected imprudent discretionary investments for Claimant in stocks, private placements, limited partnerships, and direct investments.]]>

Securities and Exchange Commission v. Abraham and Sons Capital and Brett G. Brubaker

Admin. Proc. File No. 3-9448 Testifying expert for the S.E.C. Civil penalties and bar from association with broker-dealer or registered investment advisor. Registered investment advisor and its president found to have made material fraudulent misrepresentations in connection with stock transactions, mispricing and reported performance of a managed short-stock portfolio.]]>

Blumenfeld, et al. v. Refco

NFA Arbitration No. 96-186

Testifying expert for Claimant. Award in favor of Claimants: $43 million.As part of a $100 million Ponzi scheme by an Introducing Broker (IB) the wrongful allocation of Treasury futures and options transactions on the Chicago Board of Trade (CBOT) by a Futures Commission Merchant (FCM) across Claimants’ accounts, Claimants asserted fraud, breach of contract and good faith, failure to supervise floor trading and post-transaction clearance by back office personnel in violation of industry and exchange rules.

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John Tilling v. S.W. Bach & Co.

NASD Arbitration No. 04-01896 Testifying expert for Claimant. Award in favor of Claimant: $471,000, including $291,000 in disgorgement of commissions and fees. British Claimant, Member of Lloyds of London, asserted churning, unsuitability, breach of fiduciary duty and common law fraud related to discretionary transactions in stocks and Treasury bonds.]]>

Hauser v. Merrill Lynch

NYSE Arbitration No. 1993-03312 Testifying expert for Claimant. Award in favor of Claimant: $3.5 million Swiss Claimant asserted fraud, misrepresentation, and failure to supervise registered representatives of a Lugano, Switzerland branch office of Respondent in connection with a “black money” scheme that damaged the Swiss trust company used as a conduit for cash flows and excessive foreign currency trading in fiduciary accounts.]]>

Insurance Commissioner for the State of Delaware, as Receiver for National Heritage Life Insurance (NHL) Company, a Company in Liquidation, v. Bear Stearns & Co., Inc.

Ninth Judicial Circuit, for Orange County, Florida, Magistrate Division 2, Case No. 48-1996-CA-000669-O Testifying expert for Plaintiff. Magistrate Order in favor of Plaintiff: $26.85 million. Plaintiff asserted breach of contract and good faith in providing investment advisory services, knowingly selecting and constructing a portfolio of high-risk, extremely volatile collateralized mortgage derivative securities inappropriate for Plaintiff’s investment objectives and providing analyses, projected yields and other financial information which was deceptive, misleading and inaccurate, and which Plaintiff could not independently verify.]]>

Manhattan Investment Fund Ltd. v. Bear Stearns Securities Corp.

U.S. Bankruptcy Court, SDNY, Adv. Pro. No. 01-02606 Testifying expert on notice issue for Plaintiff, Trustee of a Creditor’s Committee in Bankruptcy. Court found prime broker Defendant to be on notice of fraud. Jury decision for Defendant based on good-faith defense. Plaintiff asserted fraud, failure to investigate the fraud, and fraudulent transfers to prime broker Defendant in connection with $450 million hedge fund Ponzi scheme.]]>

Bayou Group, LLC v. Goldman Sachs

FINRA Arbitration No. 08-01763Testifying expert for Claimant. Award in favor of Claimant: $20.58 million.Claimant, Trustee for a Creditor’s Committee in Bankruptcy, asserted fraud, failure to investigate the fraud, and fraudulent transfers by prime broker Respondents in connection with $450 million hedge fund Ponzi scheme.

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