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Securities
Breach of Fiduciary Duty
Unauthorized Trade

William W. Steckbauer, Trustee for the Steckbauer Weinhart Jaffe, LLP 401(K) Profit Sharing Plan, and Dawn M. Coulson v. Karen Lyn Rosen, an individual; The Rosen Group, an unknown entity; and Does 1 through 10, inclusive

Published: Oct. 15, 2011 | Result Date: Jan. 1, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 09-05541 Arbitration –  $12,206

Court

FINRA


Attorneys

Claimant

William W. Steckbauer
(Steckbauer Weinnart LLP)

Jeffrey A. Cohen
(Law Office of Jeffrey A Cohen)


Respondent

Karen L. Rosen


Facts

Claimants alleged claims for damages based upon respondent's unauthorized trade of $9,454 of claimants' stock in a 401k plan.

Contentions

CLAIMANTS' CONTENTIONS:
Claimants contended that respondents acted without authority following claimants' written notice of revocation of authority. Claimants alleged causes of action for rescission of sale of securities or damages and negligence.

RESPONDENT'S CONTENTIONS:
Respondent filed no answer to the statement of claim, but alleged improper notice of revocation of authority to initiate trades.

Damages

Claimants sought damages for $9,454 principal, treble damages under CCP 1029.8 according to proof, prejudgment interest, attorney fees and costs, and any other further and general relief.

Result

$12,206 ($9,454 principal, $2,208 prejudgment interest, $544 costs of suit). The arbitrator held the respondents jointly and severally liable to claimants for compensatory damages in the amount of $9,454, plus prejudgment interest at the legal rate from March 14, 2008 to the date the award is paid in full, plus an apportionment of arbitration fees.


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