Facts

Theodore Zimbelman filed a claim against Kyle Harrington and National Securities Corp. in connection with his penny stock investment in Islet Sciences Inc.

CLAIMANT'S CONTENTIONS:
Claimant asserted causes of action for violation of Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5, common law fraud, negligent misrepresentation, breach of fiduciary duty, violations of California Corporations Code Section 25210(a), failure to diligently supervise, and control person liability.

RESPONDENTS' CONTENTIONS:
Respondents denied the allegations and asserted various affirmative defenses.

Result

The FINRA Panel found respondents jointly and severally liable to Zimbelman in the amount of $105,000 in compensatory damages and $50,000 in attorney fees.

Other Information

ARBITRATORS: Harvey C. Flodin, Lawrence Alexander Huerta, Shawn Michael Spaulding.