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Securities
Stocks
Failure to Diversify

Susi Orlean Bahat Family Trust v. Unionbanc Investment Services LLC

Published: Sep. 20, 2014 | Result Date: Aug. 28, 2014 | Filing Date: Jan. 1, 1900 |

Case number: 13-03003 Arbitration –  Expungement

Court

FINRA


Attorneys

Claimant

Robert W. Shaffer


Respondent

G. Thomas Fleming III
(Jones, Bell, Abbott, Fleming & Fitzgerald LLP)


Facts

The Susi Orlean Bahat Family Trust filed a complaint against Unionbanc Investment Services LLC, in connection with claimant's investment in the Putnam AMT Free Municipal Fund.

Contentions

CLAIMANT'S CONTENTIONS:
Claimant asserted a claim for failure to diversify.

RESPONDENT'S CONTENTIONS:
Respondent denied claimant's allegations, and asserted various affirmative defenses. Respondent requested the expungement of Michael Padilla's records. Padilla was a non-party to the action.

Damages

Claimant requested $30,000 in damages, voiding of the Fund, and reinstatement of $400,000 to her savings account.

Result

The FINRA Panel recommended the expungement of Padilla's records. Next, it found that claimant was not risk-adverse and that claimant was aware that she could lose the principal. The Panel concluded that claimant's allegation was false.


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