Facts

Fred McKay, as Trustee for the McKay Family Trust, Keri Ly, Fred Hamsayeh, and Matthew Goldwaithe filed a complaint against Berthel, Fisher & Co. Financial Services Inc. in connection with real estate investments offered by DBSI. Berthel Fisher filed a counter-claim against Hamsayeh.

CLAIMANTS' CONTENTIONS:
Claimants asserted claims for misrepresentation and omissions, breach of fiduciary duty, breach of contract, failure to supervise, negligence and gross negligence, fraud and constructive fraud, violation of NASD and FINRA Rules, and violation of California and federal securities laws.

RESPONDENT'S CONTENTIONS:
Respondent Berthel Fisher denied the allegations and asserted various affirmative defenses. It also contended that the claims were ineligible for arbitration and so it requested a dismissal of the action.

COUNTER-CLAIMANT'S

Damages

Claimants requested about $150,000 in compensatory damages and other damages. In its counter-claim, Berthel Fisher requested $46,232 in damages plus costs, disbursements, and fees.

Result

Ly and Hamsayeh decided to withdraw their claims against Berthel Fisher in 2013. Then, the Trust and Goldthwaite informed the FINRA Panel on Oct. 10, 2014, that they had reached a settlement with Berthel Fisher. Next, Berthel Fisher and Hamsayeh agreed to have Berthel Fisher's counter-claim decided on the papers by the chairman. Ultimately, the arbitrator denied Berthel Fisher's claims in its entirety.

Other Information

FILING DATE: Oct. 8, 2013.