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Securities
Negligence
Breach of Fiduciary Duty

Madhok Family Trust dated 1/13/1997 v. Charles Schwab & Co. Inc.

Published: Dec. 3, 2011 | Result Date: Nov. 10, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 10-02339 Arbitration –  Respondent

Court

FINRA


Attorneys

Claimant

Thomas D. Mauriello
(Mauriello Law Firm APC)


Respondent

Gordon C. Young
(Barr & Young Attorneys)


Facts

The Madhok Family Trust dated 1/13/1997 filed a complaint against Charles Schwab & Co. Inc. alleging negligence, breach of fiduciary duty, breach of contract, negligent misrepresentation, fraud and deceit, violations of Business and Professions Code for Unfair Business Practices, and violations of the California Corporations Code related to investments in the Schwab California Tax-Free YieldPlus Fund.

Damages

Claimant sought compensatory damages of $831,000 or a rescission, plus interest, fees and costs. In addition, claimant also sought exemplary or punitive damages.

Result

All claims were denied in their entirety with prejudice. The arbitration panel recommended expungement of Kimon Dafotis' and Gary Duarte's registrations.

Other Information

ARBITRATORS: Michael Lancaster Garcia, Ronald J. Vernali, James D. Murray.


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