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Securities
Breach of Fiduciary Duty
Negligence

Charles W. Ott, as Trustee and Sole Beneficiary of the MBO Insurance Brokers, Inc. Profit Sharing Plan FBO Charles W. Ott v. Charles Schwab & Co. Inc., Kimon P. Daifotis

Published: May 7, 2011 | Result Date: Mar. 31, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 09-05961 Arbitration –  Expungement

Court

FINRA


Attorneys

Claimant

Thomas D. Mauriello
(Mauriello Law Firm APC)


Respondent

Anne M. Moriarty


Facts

Charles Ott entered into arbitration with Charles Schwab & Co. Inc. and Kimon Daifotis regarding Ott's investment in the Schwab YieldPlus Fund.

Contentions

CLAIMANT'S CONTENTIONS:
Ott alleged negligence, breach of fiduciary duty, breach of contract, fraud and deceit, as well as violations of California's Corporations Code.

RESPONDENT'S CONTENTIONS:
Charles Schwab denied the allegations, asserting various affirmative defenses.

Damages

Ott sought compensatory damages of $262,500, as well as consequential damages for loss of business, interest, costs, attorney fees, and punitive damages.

Result

After the parties reached a settlement, the arbitration panel dismissed the claims and awarded expungement for non-party Rupesh Shah.

Other Information

ARBITRATORS: Jonathan H. Krotinger (Chair), James D. Murray (Public), Michael C. Butterworth (Industry).


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