Facts

Claimants Harry C. Zaban Jr., IRA Rollover US Clearing Custodian and Harry C. Zaban & Jayne G. Zaban Family Trust DTD 10/22/90, and Harry C. Zaban & Jayne G. Zaban TTEES filed a claim against McLaughlin, Piven, Vogel Securities Inc., James C. McLaughlin, Allan M. Vogel, Kevin Anders and Ira A. Cohen. The claims involved investments in the Murder Net Net Fund and other investments and mutual funds. The dispute was resolved by an NASD Dispute Resolution board.

CONTENTIONS:
Claimants alleged that respondents had tendered negligent investment advice and recommendations. They claims that respondents had also violated industry rules, such as the NYSE's "Know Your Customer" standard and the NASD customer suitability standard. Further, they alleged breach of contract, breach of fiduciary duty, common law fraud, negligence and negligent supervision. Respondent denied the allegations and any liability. They asserted various affirmative defenses, including the statute of limitations.

Damages

Claimants requested between $100,000 and $500,000 in compensatory damages, plus interest. They also sought rescission, punitive damages, costs, and any other relief deemed proper. Respondents requested that the panel grant their motion to dismissed based on the fact that claimant's claims were barred by the statute of limitations. In the alliterative, respondents requested that the claims against them be dismissed. They also requested that a finding of no wrongdoing be entered for the individual respondents and that the record of this matter be expunged from their CRD records. Finally, respondents also requested their costs.

Result

The respondent's motion to dismiss was granted. All claimants claims were dismissed because they were time barred. The panel recommended expungement of all reference of the matter from the individual respondents' CRD records. The parties each bore their respective costs.