Facts

Claimants Mary Jean Simpkins, individually, as trustee of the Mary Jean Simpkins Trust DTD 8/12/99, and as custodian for Bradley Cameron Crowe and Ciera Anabelle Crowe, alleged breach of fiduciary duty, unsuitability, unauthorized trading, fraud, negligence, violation of NASD rules, and failure to supervise. The respondents were A.G. Edwards & Sons, Inc. and Michael L. Tahmoush. The claimants alleged that the respondents improperly allocated the claimants' assets by investing up to 100% of certain accounts in equities including, but not limited to, America Online, Amgen, Applied Micro Circuits, Cisco, Citigroup, EMC, Guident, Intel, MCI Worldcom, Medtronic, Nokia, Nortel Networks, Oracle, Qwest Communications, Sun Microsystems, Texas Instruments, Verisigns, Vodaphone Wireless and Yahoo.

The respondents denied the allegations of wrongdoing set forth in the claimants' Statement of Claim and asserted various affirmative defenses.

Damages

The claimants requested $600,000 in compensatory damages, unspecified lost opportunity damages, unspecified punitive damages, pre-judgment interest, and costs, including attorney fees. The respondents requested dismissal of the claimants' Statement of Claim in its entirety, as well as costs.

Result

The respondents were found jointly and severally liable to, and shall pay the claimants $92,684 in compensatory damages. The respondents shall also reimburse the claimants $375 in filing fees.