Facts

Eugene Elliott, Shawn Elliott, Genraza LLC, and The Elliott Family Trust DTD 9-17-86 filed a complaint against J.P. Morgan Securities LLC concerning certain securities.

COMPLAINANTS' CONTENTIONS:
Complainants claimed respondents engaged in a strategy involving the short selling of U.S. Treasury Strips.

Complainants asserted claims for breach of fiduciary duty, breach of written and oral contract, constructive fraud, fraud by misrepresentation and omission, failure to supervise and control, and violation of state and federal securities laws.

RESPONDENT'S CONTENTIONS:
Respondent denied the allegations and asserted various affirmative defenses.

Damages

Claimants sought between $1.55 million and $1.7 million in damages.

Result

The FINRA Panel found in favor of claimants and awarded them $1,145,747 in compensatory damages plus 10 percent interest, $42,500 in expert witness fees, and $600 in filing fees. The Panel also assessed $24,150 in hearing fees against respondent.

Other Information

ARBITRATORS: Arthur T. Berggren, Janice A. Salter, and Michael R. Diliberto. FILING DATE: April 9, 2014.