Facts

Claimant Laura Lyn Bell brought a FINRA action against respondents Morgan Stanley Smith Barney LLC and Citigroup Global Markets Inc.

CLAIMANT'S CONTENTIONS:
Claimant contended that respondents breached its fiduciary duties to her by failing to safeguard her funds, and enabling many hundreds of thousands of dollars to be withdrawn from claimant's securities account without proper authorization. Claimant also claimed that respondents enabled its financial advisor overseeing claimant's account, who is claimant's husband, to improperly commingle funds between various securities accounts, and that respondents failed to adequately supervise its financial advisor. As a result, claimant suffered principal losses of many hundreds of thousands of dollars.

Claimant contended that respondents violated the law relating to securities in her Morgan Stanley account. Claimant asserted causes of action for negligence, breach of fiduciary duty, negligence, and negligent failure to supervise.

RESPONDENT'S CONTENTIONS:
Respondent denied claimant's allegations and asserted various affirmative defenses, and sought sanctions against claimant for filing the case.

Result

The arbitration panel found respondents jointly and severally liable to claimant in the amount of $625,000 in compensatory damages.

Other Information

FILING DATE: Robert C. Albini, Arthur T. Berggren, Lawrence Yaeger.