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Securities
Breach of Contract
Fraud by Misrepresentation

William Condon v. Kovack Securities Inc., Yaron Reuven, Reuven Enterprises Securities Division, LLC

Published: Jun. 23, 2012 | Result Date: May 3, 2012 | Filing Date: Jan. 1, 1900 |

Case number: 10-05367 Arbitration –  Expungement

Court

FINRA


Attorneys

Claimant

Marc I. Zussman
(Law Office of Marc I. Zussman)


Respondent

Elaine M. Rice

Michael Huberman


Facts

William Condon filed an arbitration claim against Kovack Securities Inc., Yaron Reuven, and Reuven Enterprises Securities Division LLC in relation to investments in Nextel Partners Inc., Sirius Satellite Radio Inc., Advanced Micro Devices, Flagstar Bancorp. Inc., Nasdaq 100, Sunopta Inc., and Sun Microsystems.

Contentions

CLAIMANT'S CONTENTIONS:
Claimant alleged wrongful conduct, breach of written contract, fraud by misrepresentation, failure to supervise and control, violation of securities laws, violation of FINRA and NYSE's rules of fair practice, and elder abuse.

RESPONDENTS CONTENTIONS:
Reuven and Reuven Enterprises denied the allegations.

Damages

Claimant sought $1,268,336 in compensatory damages.

Result

The arbitration panel recommended expungement of reference to Reuven's registration records, finding that Claimant had extensive investment experience and understood the use of margin and his trades were made while knowing and according to a stated written financial objective of capital prevention and high risk.

Other Information

ARBITRATORS: Hon. Anita Rae Shapiro, Robert W. Vernon, James M. Goldberg.


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