Facts

The Bruce L. Hopper Rollover IRA and others filed for arbitration against Pursche Kaplan Sterling Investments Inc., Corey Casilio, and William Leitch.

Casilio and Leitch filed a third party claim against John Valentine.

Claimants and Pursche Kaplan Sterling were no longer part of the suit at the time of hearings and did not participate. The Panel only adjudicated claims in regard to Casilio and Leitch's third-party claims against Valentine.

THIRD-PARTY CLAIMANT/RESPONDENT'S CONTENTIONS:
Third-party claimant asserted causes of action for indemnity, violation of SEC and FINRA rules, libel per se, constructive discharge, and breach of contract. These causes of action related to their business relationship with Valentine.

CLAIMANT'S CONTENTIONS:
The claimants asserted causes of action for breach of contract and warranties, promissory estoppel, violation of state securities statutes, claims under common law, and vicarious liability. The causes of action related to investments in unspecified real estate investment trusts.

RESPONDENT'S

Damages

The claimants sought $1,000,000 in damages.

Result

The arbitration panel found Valentine liable to Casilio and Leitch for $800,000 in damages, and $2.5 million in punitive damages. The panel also ordered Valentine to pay $338,081 for their attorney fees, and $30,656 for sanctions. It further recommended the expungement of all references to this arbitration from Casilio and Leitch's registration records.

Other Information

Purshe Kaplan Sterling was ordered dismissed from the case prior to the arbitration hearing.