Facts

Claimant Darrell Lake, acting as the executor of the estate of Walter J. Suckiel and trustee of Walter J. Suckiel community property trust brought an NASD arbitration claim against Respondents WM Financial Services Inc. and Roy M. Leonard. Lake alleged fiduciary breach and negligence, misrepresentation of non-disclosures/omissions of fact, inappropriate securities, failure to supervise, breach of contract and elder abuse regarding investments in an annuity from Jackson Mutual.

WM Financial and Leonard disputed the allegations made against them and denied liability.

Damages

The claimants sought $500,000 in damages plus commissions Suckiel paid. They also sought $1,500,000 in elder abuse damages, $1,500,000 in punitive damages, interest, costs and attorney fees. The respondents sought dismissal of the claims against them with prejudice. They also sought costs and the arbitration panel's determination that the present complaint be removed from their CRD records.

Result

The arbitration panel determined that the allegation was factually and clearly erroneous and the registered person did not participate in the alleged violations. All claims brought against the respondents, including that for punitive damages, were dismissed. The arbitration panel also recommended expungement of all reference to the arbitration from the respondents' registration records maintained by the NASD Central Registration Depository.