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Securities
Breach of Fiduciary Duty
Failure to Diversify/Securities Concentration

Stanley G. Kazezski, Lillian J. Kazezski, Kazezski Revocable Trust DTD 09/26/90 v. Wedbush Morgan Securities Inc., Lisa Ann Gallo

Published: Jun. 18, 2011 | Result Date: May 5, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 09-06884 Arbitration –  $750,000

Court

FINRA


Attorneys

Claimant

Andrew V. Tramont


Respondent

Charles B. LaChaussee
(Wedbush Securities Inc.)


Facts

Stanley and Lillian Kazezski entered into arbitration with Wedbush Morgan Securities Inc. and Lisa Gallo regarding investments in shares of Pacific Capital Bancorp stock.

Contentions

CLAIMANT'S CONTENTIONS:
The Kazezskis alleged breach of fiduciary duty, unsuitability, failure to diversify, negligence, negligent supervision, and breach of contract.

RESPONDENT'S CONTENTIONS:
Wedbush and Gallo denied the allegations, asserting various affirmative defenses.

Damages

The Kazezskis sought $6 million in damages.

Result

The arbitration panel found Wedbush liable to the Kazezskis for $750,000 in compensatory damages. All claims against Lisa Gallo were denied.

Other Information

ARBITRATORS: Paul D. Gutierrez, Homer M. Dalbey, James C. Riewerts.


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