Facts

Claimants Abel and Eva Crespo filed a claim against Morgan Stanley DW Inc. involving several technology stocks. Their claim was heard by a NASD Dispute Resolution Panel.

CLAIMANTS' CONTENTIONS:
Claimants alleged unsuitability, churning, constructive fraud, negligent misrepresentation, and failure to supervise. They also claimed violations of federal and state securities laws, NASD contract rules, and NYSE rules. Claimants alleged breach of contract and breach of fiduciary duty as well.

RESPONDENT'S CONTENTIONS:
Respondents denied the allegations of wrongdoing and asserted various affirmative defenses.

Damages

Claimants requested $401,594.43 in compensatory damages, punitive damages, lost opportunity costs, interest, costs, attorney fees, and the disgorgement of all profits generated from their portfolio, including commissions and fees.

Result

Claimants were awarded $272,624, as four separate awards. For Abel Crespo one award was for $48,000 and the other was for $85,200. He was not awarded interest on the awards. For, Eva Crespo one award was for $6,190 and the other was for $63,522. She was awarded interest at four percent per annum on the sum of $69,712 from Oct. 31, 2000 until Aug. 31, 2004. The motions for sanctions were denied. The parties each bore their respective costs.

Other Information

The arbitration panel consisted of: Thomas E. Shuck, William David Wells and Michael M. Perrigue.