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Securities
Fraud
Negligent Misrepresentation, Breach of Fiduciary Duty

Ikho Kang, Unsoon K. Kang v. First Wall Street Corporation, John Openshaw, Barbara J. Ralston, Katherine Dudley, Charles P. Lazzaro

Published: Dec. 6, 2008 | Result Date: Oct. 17, 2008 | Filing Date: Jan. 1, 1900 |

Case number: 02-03268 Arbitration –  Defense

Court

Arbitration Forum


Attorneys

Claimant

Christopher P. Mader
(Baldwin Mader Law Group)


Respondent

Brandon S. Reif
(Reif Law Group PC)


Facts

The claimants alleged fraud, negligent misrepresentation, breach of fiduciary duty, failure to supervise, respondeat superior, controlling person liability, breach of contract, negligence and negligent infliction of emotional distress. Later, the claimants further alleged underwriter liability and conspiracy to violate the Securities Act of 1933. Each claim arose out of the claimants' investment in shares of Telergy Inc. The respondents, First Wall Street Corporation, John Oppenshaw, and Charles Lazzaro, rejected each claim.

Damages

The claimants demanded $590,000 in damages, punitive damages, interest, rescission, along with attorney fees and costs. The respondents asked for dismissal of the claim.

Result

The panel determined that expungement of references to the claims from Charles Lazzaro's records in the Central Registration Depository (CDR) would be proper. Further, Lazzaro must obtain confirmation from a proper court according to Notice to Members 99-09 and 99-54 prior to the CDR's execution of expungement.

Other Information

ARBITRATORS: James Donovan, Thomas Watkins, Michael Burnett.


#121922

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