Facts

John T. Hall, James Kaczmarek, and Mary Kaczmarek, filed for arbitration against Scott W. Doll and others.

PLAINTIFF'S CONTENTIONS:
The claimants asserted causes of action for federal securities fraud, breach of fiduciary duty and constructive fraud, fraud and deceit, California securities fraud, unfair sales practices, negligence, elder abuse, and declaratory relief. The causes of action were all related to a 1031 exchange into a Heron Cove LLC Tenant in Common investment.

DEFENDANT'S CONTENTIONS:
The respondents denied all of the claimants' allegations.

Damages

The claimants sought $1 million in damages, and a declaration that LPL Financial LLC would be indemnify them from any liability in connection with the Heron Cove investment.

Result

The arbitration panel recommended the expungement of all references to the arbitration from the records of Doll and Andrew Horowitz. Otherwise, the panel found that the claimants' allegations were false and denied them in their entirety. The panel found no evidence that Doll had committed any violations, and that he had a reasonable expectation that the investment had been suitable. The panel also found no evidence that Horowitz had committed any violations.

Other Information

ARBITRATORS: Neil S. Jasper, Martin Olinick and Kenneth E. Owen.