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Securities
Breach of Fiduciary Duty
Common Law Fraud

Melvin Dias, Evelyn Dias v. The Concord Equity Group, LLC, John William Pena

Published: Aug. 21, 2010 | Result Date: Jul. 20, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 09-03291 Arbitration –  $127,000

Court

FINRA


Attorneys

Claimant

Scott R. Shewan
(Pape & Shewan LLP)


Respondent

Barry M. Bordetsky


Facts

Claimants Melvin and Evelyn Dias filed a claim against respondents Concord Equity Group LLC and John Pena, who invested their money in unspecified securities.

Contentions

CLAIMANT'S CONTENTIONS:
The Dias' argued Concord was liable under theories of common law fraud, unauthorized transactions, breach of fiduciary duty, churning/excessive compensation, violations of securities laws, failure to supervise.

Damages

The Dias' claimed $546,000 and $260,000 for two claims of common law fraud, and damages in sums according to proof for the unauthorized transactions, breach of duty, excessive compensation, and failure to supervise. Also, they claimed damages to be calculated by the state securities law. They also sought punitive and exemplary damages and interest.

Result

The panel found Concord liable for $52,000 in fraud compensatory damages and interest at 6% annum. Claimants were also awarded $75,000 in punitive damages.

Other Information

FILING DATE: Robert E. Thompson, Walter J. Huntley III, Richard B. Bullock.


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