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Securities
Securities Fraud
Breach of Fiduciary Duty

Daniel L. Villanueva Family Trust v. Wedbush Securities Inc., Javier Rivera Jimenez

Published: Sep. 24, 2011 | Result Date: Jun. 27, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 09-05898 Arbitration –  $115,397.26

Court

FINRA


Attorneys

Claimant

Aimee E. Dominguez

Ardeshir Sarbaz


Respondent

John W. Stenson
(The Law Offices of John W. Stenson)


Facts

Daniel L. Villanueva Family Trust (Villanueva) entered into arbitration with Wedbush Securities Inc. and Javier Jimenez, regarding to unauthorized trading in the Trust's account.

Contentions

CLAIMANT'S CONTENTIONS:
Villanueva alleged fraud, negligence, breach of fiduciary duty, churning, failure to supervise, breach of contract, and unsuitable trading.

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

Damages

Villanueva sought disgorgement, as well as damages of $600,000, civil penalties, $600,000 in punitive damages, interest, attorney fees, and costs.

Result

The arbitration panel held Wedbush and Jimenez jointly and severally liable and awarded Villanueva $81,000 plus interest and expert fees, for a total award of $115,397.26.

Other Information

ARBITRATORS: Suzanne V. Chamberlain, Anita Rae Shapiro, David Maurer.


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