Facts

M.C. Otis, as trustee for the Otis Trust, filed for arbitration against Morgan Stanley Smith Barney LLC.

PLAINTIFF'S CONTENTIONS:
Otis asserted causes of action for violations of the California Securities Law, breach of contract and promissory estoppel, violation of the California Consumer Legal Remedies Act, and violation of Elder Abuse statutes. The causes of action related to Otis's investments in the Central Folsom Redevelopment Project municipal bond and the Golden State Tobacco municipal bond.

DEFENDANT'S CONTENTIONS:
Morgan Stanley denied Otis's allegations, and asserted various affirmative defenses.

Damages

Otis requested between $500,000 to $1 million in damages.

Result

The panel recommended the expungement of all references to this arbitration from the registration records of Allen Schreiber. Otherwise, the panel found that Otis's claims were false, and that Otis had been a highly experienced, sophisticated, and wealthy individual who had dealt directly with dealers to purchase bonds, with Schreiber's involvement.

Other Information

ARBITRATORS: Robert J. Ruben, Michael John Florio and Audrey Lynne Myer