Facts

Robert Blakeman and Anne Mahr filed a complaint against Barry Bayat, and UBS Financial Services Inc., in connection with claimants' unspecified securities losses incurred in 2008 and 2009.

CLAIMANT'S CONTENTIONS:
Claimants asserted causes of action for negligence, fraud, deceit and omission of material facts, suitability, breach of duty, violation of California Corporations Code Section 25401, et seq., failure to supervise, violation of FINRA rules and regulations, breach of contract, and breach of implied covenant of good faith and fair dealing.

RESPONDENTS' CONTENTIONS:
Respondents denied claimants' allegations, and asserted various affirmative defenses. Bayat requested the expungement of his records.

Damages

Claimants requested $637,098 in compensatory damages plus disgorgement of commissions earned by respondents, loss of opportunity damages of no less than $813,965, interest, punitive damages, and attorney fees and costs.

Result

The parties ultimately settled their dispute. The FINRA Panel thereafter recommended Bayat's expungement request. The panel also issued a ruling finding that the preferred stocks were suitable when purchased, and that its value declined as a result of the 2008 market crash. The panel also found that there was no evidence of forgery, theft, misappropriation, or conversion of funds, and that the expungement of Bayat's records had no material adverse effect.

Other Information

ARBITRATORS: Michael D. Harrison, Constance Ellen Boukidis and Dorothy B. Strackbein.