Rose Kramer, Stanley Kramer, Mayer & Rose Kramer Inter Vivos Trust, DRG Hendersonville TIC 13 LLC, TIC, Ren Meadowlands 31, LLC v. Larry Ivan Behrends, Capwest Securities, Inc., Dale Keith Hall, Kathleen Louise Heshelow, Lawrence William Lambert, Michelle Rebecca Langer, David L. Smith, Robert Tweed
Published: Jun. 16, 2012 | Result Date: May 25, 2012 | Filing Date: Jan. 1, 1900 |Case number: 11-01909 Arbitration – $338,000
Court
FINRA
Attorneys
Claimant
Jonah A. Toleno
(Shustak, Reynolds & Partners PC)
Respondent
H. Thomas Fehn
(Fields Fehn & Sherwin)
Facts
The claimants asserted causes of action for fraudulent misrepresentation, fraudulent concealment and omission, negligent misrepresentation, negligent concealment and omission, breach of fiduciary duty, unsuitability, failure to supervise, breach of implied covenant of good faith and fair dealing, elder abuse, violations of state and federal securities laws, and violations of FINRA, NASD, and NYSE rules. These claims arose out of Respondents' recommendation Claimants invest in two tenancy-in-common investments in New Jersey and Tennessee. Claimants named CapWest, which went out of business after the case was filed, the individual brokers, and various control-person shareholders as Respondents.
Result
The arbitration panel found Capwest, broker Robert "Rusty" Tweed, and former CapWest President Larry Behrends to be jointly and severally liable for compensatory damages in the amount of $338,000. Liability for costs was allocated between claimants and respondents.
Other Information
ARBITRATORS: Vincent J. Natoli Jr., Robert F. Saint-Aubin, W. Alex King.
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