Facts

Mario Frank Voce, Julia Voce, and Adam DeVone, as co-trustees of the Restated Voce Marital Trust, the Voce Residuary Trust, and the Voce Family Trust dated August 17, 1970 filed an arbitration claim against Morgan Stanley & Co. LLC in relation to loans and the purchase and trading of stocks, mutual fund and options.

CLAIMANTS' CONTENTIONS: Claimants alleged causes of action for breach of fiduciary duty, churning, negligent supervision, unsuitability, fraud, fraudulent concealment, omission of material facts, failure to supervise, and conversion. Claimants also contended that respondent financially abused an elder, for whom it served as a fiduciary from age 74 through age 92.

RESPONDENT'S CONTENTION: Respondent denied the allegations and asserted various affirmative defenses. Respondent's main contention was that claimants' claims were ineligible for arbitration pursuant to FINRA Rule 12206, providing a six-year eligibility period.

Damages

Claimants sought $1,811,435 in excessive commissions, at least $700,000 in consequential damages, well-managed portfolio damages, treble damages for financial elder abuse, and punitive damages. Respondent sought dismissal of claimant's claims and that the matter be expunged from the Central Registration Depository record of the involved financial advisor.

Result

The panel granted respondent's motion to dismiss claimants' claims, pursuant to FINRA Rule 12206, and instructed that a motion for expungement may be filed in a new case.

Other Information

ARBITRATORS: Robert E. Jenks, presiding chairperson, Steven Cohen, James R. Duncan.