Facts

Sandra Liebhaber filed a complaint against Royal Alliance Associates Inc. in connection with claimant's investments in Ohio National Life Insurance Variable Annuity, Hartford Director M Outlook Variable Annuity, Hartford Leaders Outlook Variable Annuity, SunAmerica Annuity and Life Assurance Variable Annuity, and Inland American Real Estate Trust Inc.

CLAIMANT'S CONTENTIONS:
Claimant alleged that there were unsuitable investments recommended by respondent and its broker of record at the time, non-party Kathleen Tarr. Claimant asserted claims for negligence, breach of fiduciary duty, and California securities law violations, based on the alleged unsuitability of certain investments in her account maintained by respondent.

RESPONDENT'S CONTENTIONS:
Respondent denied claimant's allegations. Respondent contended that the investments in claimant's account were suitable at the time they were made, based on the information provided by claimant to respondent. Respondent contended claimant's investments were diversified and met her liquidity needs. Respondent argued that claimant could not seek alleged losses, which were the result of market performance and her own withdrawals.

Damages

Claimant sought no less than $325,000 in compensatory damages, plus costs and fees.

Result

Claimant settled her claims with Royal Alliance for $30,000. Thereafter, Royal Alliance requested the expungement of non-party Kathleen Tarr's Central Registration Depository records. The FINRA Panel recommended the expungement of Tarr's records, finding Leibhaber's allegations false.

Other Information

According to claimant, the arbitration panel refused to allow claimant to cross-examine Tarr, and refused to allow Liebhaber to testify in the case. ARBITRATORS: Richard J. Stall Jr., June McLaughlin and Carole Helfert Aragon.