Facts

Claimants Michael A. Carrick, Jeanna D. Carrick, and Carrick Family Trust DTD 9/5/07 asserted several causes of action against respondents First Allied Securities, Inc., Marsha Lee, and Marsha Lee & Company, Inc. related to various stock.

CLAIMANTS' CONTENTIONS: Claimants contended that Lee stole from them, that her excessive trading caused account losses, and that she decimated their account due to her hunger for commissions. Claimants asserted negligence; suitability; negligent misrepresentation; omission; intentional misrepresentation; fraud; and violation of California Securities Law. Claimants requested compensatory damages in the amount of $525,235.00, disgorgement of any advisory fees, a 10 percent interest rate on the deposits, and elder abuse damages.

RESPONDENTS' CONTENTIONS: Respondents denied the allegations and asserted various affirmative defenses. Lee provided a detailed historical ledger, which itemized all activity, showing she did not steal from claimants. Lee argued that claimants' losses were due to their excessive withdrawals. Lee also contended that claimants' account produced net gains of $116,000. Lee filed a motion for expungement, which was unopposed.

Result

First Allied settled the matter for $125,000, and Lee did not contribute to the settlement amount. The panel expunged the occurrence from Lee's CRD records, finding it to be false.

Other Information

ARBITRATORS: Ronald L. Cameron, presiding chairperson, Robert C. Albini, Terry Lynn Chambless.