Facts

Carolyn Turner filed an arbitration claim against Robert Osur and Centaurus Financial Inc. in relation to an investment in a variable annuity held in Turner's IRA account.

CLAIMANT'S CONTENTIONS:
Claimant alleged that respondents violated the Exchange Rules of Conduct.

RESPONDENTS' CONTENTIONS:
Respondents rejected the claims of misconduct, and rejected that claimant had been damaged because she realized a net gain of approximately $150,000 upon the sale of the variable annuity at issue.

Damages

Claimant sought $150,000 in compensatory damages.

Result

The arbitration panel granted respondents' motion to dismiss the claim. The arbitration panel also assessed the entire $9,000 of hearing session fees jointly and severally to claimant, her counsel and non-attorney representative.

Other Information

Respondents alleged that non-attorney Jules Federman was engaged in the unauthorized practice of law by representing claimant, and that co-representative Nancy Undem, attorney at law, was aiding and abetting the unauthorized practice of law. Federman and Undem denied these allegations. Pursuant to the Arbitrators' request, the parties briefed this issue. After consideration of the parties' briefs and arguments thereon, Arbitrators Medof and Mitchell filed a complaint against Undem with the State Bar of California ("Bar"). Undem has yet to receive notice from the Bar regarding the decision; however, she claims that a denial has been issued, but is being withheld.