Ifrach Family Trust Number 1, Ifrach Family Trust Number 2, Shoshana Ifrach IRA, Abraham Ifrach IRA v. First Montauk Securities Corp., JP Turner & Company, LLC, GunnAllen Financial Inc., Maxxtrade Inc., Shlomo & Epiboim, Epiboim, Poutre & Co. Inc.
Published: Oct. 9, 2010 | Result Date: Sep. 7, 2010 | Filing Date: Jan. 1, 1900 |Case number: 08-03317 Arbitration – $85,061
Court
FINRA
Attorneys
Claimant
Respondent
Kevin K. Fitzgerald
(Jones Bell LLP)
Jonathan Schwartz
(Law Office of Jonathan Schwartz)
Facts
Claimants Ifrach Family Living Trusts #1 and #2, Shoshana Ifrach IRA, and Abraham Ifrach IRA, entered into arbitration with respondents First Montauk Securities Corp. (FMSC), JP Turner & Co. LLC (JPTC), GunnAllen Financial Inc., Maxxtrade Inc., Shlomo Eplboim, and Eplboim Poutre & Co. Inc. regarding various investments in closed end funds.
Contentions
CLAIMANTS' CONTENTIONS:
Claimants alleged unsuitability, breach of contract, breach of fiduciary duty, failure to supervise, and negligence. They also alleged fraud, chuming, self-dealing, non-disclosure, manipulation of accounts, improperly trading without client consent, and violation of NASD rules.
RESPONDENTS' CONTENTIONS:
Respondents denied the allegations, asserting affirmative defenses. FMSC filed a cross claim against Eplboim seeking indemnification, contribution, and attorney fees.
Damages
Claimants sought $690,000 in compensatory damages, as well as punitive damages of $690,000, costs, and attorney fees.
Result
The arbitration panel found Eplboim liable for $85,061 in compensatory damages, dismissing the remaining claims.
Other Information
ARBITRATORS: Robert A. Lombardi, Alan M. Rosen, George F. Garris.
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