Facts

Claimants Michael Rocco and Christiane Rocco filed an action against respondents Paul Robert Beck, Seidler Holdings Inc., The Seidler Companies Inc., Crowell, Weedon & Co., Debra Marcy Reda-Cappos, and Western International Securities Inc. relating to claimant's investments in dividend reinvestment programs.

CLAIMANT'S CONTENTIONS:
Claimants alleged that respondents had been negligent, committed fraud, deceit, and omission of material fact, breached their fiduciary duty and duty of trust, violated CA Corporations Code Section 25401, engaged in unauthorized trading, failed to supervise, churned, violated FINRA rules and regulations, and committed breach of contract as well as a breach of the implied covenant of good faith and fair dealing. Respondents denied these allegations.

Damages

Claimants sought $82,376 in compensatory damages and $31,835 for disgorgement of commissions wrongfully earned by respondents. Claimants also sought lost opportunity damages, rescissionary damages, punitive damages, cost of arbitration, and attorney fees.

Result

After review, the arbitration panel determined that claimant's allegations were factually impossible and clearly erroneous. Arbitration fees were split between claimants and respondents. This was an expungement following the payment of a settlement. The expungement was only with respect to the respondent broker.

Other Information

ARBITRATORS: Daniel David Kopman, Norman Michael Garland, Terry Lynn Chambless