This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Contracts
Breach of Fiduciary Duty
Unsuitable Recommendations

Carl Alexen, Suzette Cohen, Kristy Crouch, Gelsomino Living Trust, Mildred Jazmin, Sonia Johnson, Johnson Family Trust, Wesley Kuo, Phyllis Kuo, William Kuzneski, Marianne Kuzneski, Martha Phillips IRA, Luis Mendez, Louis Morales, Verna Papotta, Martha Phillips, Ronald Turner IRA, Ruben Villarreal IRA, Michel Sanner, Sonia Johnson IRA, Sonia Johns

Published: Feb. 4, 2017 | Result Date: Nov. 21, 2016 | Filing Date: Jan. 1, 1900 |

Case number: 15-00963 Arbitration –  $75,855

Court

FINRA


Attorneys

Claimant

Adam J. Gana
(Gana Weinstein LLP)


Respondent

David L. Aronoff
(Baker & Hostetler LLP)


Facts

Claimants initiated a FINRA arbitration against respondents relating to their investments in VGTel Inc. shares.

Contentions

CLAIMANT'S CONTENTIONS:
Claimant contended that respondents violated the law with respect to the VGTel shares, including by providing unsuitable recommendations, breaching fiduciary duties, and fraudulently or negligently making material misrepresentations and omissions of material information.

RESPONDENTS' CONTENTIONS:
Respondent denied claimant's allegations and asserted various affirmative defenses.

Damages

Claimants sought $6 million in compensatory damages.

Result

The arbitration panel determined that respondent Wilson-Davis was liable to claimant Kristy Crouch for $75,855.16 in compensatory damages. It denied the Kuos', Kuznesis' and Phillips' claims in their entirety.

Other Information

ARBITRATORS: Kenneth E. Owen, Eric Gad Forster, Daniel James Yee.


#115433

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390