Facts

Margaret Smith, individually and as Trustee of the Margaret Farwell Smith 2007 Trust UAD 10/02/07 and the Margaret Farwell Smith CRUT Trust dtd 5/15/07 sued Centaurus Financial Inc. and Fera Shivaee in connection with investments in NNN Wesley Paces Tenant in Common and various other unspecified Real Estate Investment Trusts.

CLAIMANT'S CONTENTIONS:
Claimant asserted claims for unsuitability, breach of fiduciary duty of loyalty, negligence, failure to do due diligence, negligent misrepresentation, breach of contract, material omissions and misrepresentations, securities fraud, fraud based on concealment, failure to supervise/negligent supervision, and violations of FINRA rules and regulations concerning the sale of securities.

RESPONDENTS' CONTENTIONS:
Respondents denied the allegations and asserted various affirmative defenses.

Damages

Smith sought compensatory or rescissionary damages in an amount no less than $1 million, $862 in compensatory damages, interest, tax liabilities, commissions, costs, punitive and/or exemplary damages, lost opportunity damages, and attorney fees and costs.

Result

The FINRA Panel found respondents jointly and severally liable to Smith in the amount of $405,778 in compensatory damages, $81,558 in pre-judgment interest, and post-judgment interest at the rate of 10 percent per annum. Also, $95,000 in attorney fees subject to the parties' attorney fee agreement, $43,841 in expert witness fees, the return of specified amounts as part of a rescission order, and $600 as reimbursement of the claim filing fee. The Panel denied Shivaee's request for expungement.

Other Information

A petition to vacate this award is on file with the Los Angeles Superior Court. ARBITRATORS: Morris S. Getzels, Owen Frances, Mark Alan Sevigny.