Facts

Claimants Leonard and Nancy Becker filed a statement of claim against Global Crown Capital and Rani Jarkas. Their claims involved a Cogent hedge fund, an investment with an overseas investment advisor, and trading in various securities, including Amgen, Network Appliances, Neurocrine Bioscience, Stmicroelectronics Texas Instruments, ASML Holdings, Veritas Software, Novellus, and Analogue Devices. An NASD arbitration panel heard the dispute.

CONTENTIONS:
Claimants alleges unsuitability, churning, breach of fiduciary duty, fraud and elder abuse. Respondents denied the allegations.

Damages

The claimants sought $735,000 in compensatory damages; $400,000 in punitive damages and attorney fees. The respondents requested dismissal of claimants' claims.

Result

Claimants were awarded $1,500 in discovery sanctions. Respondents were found liable to Leonard Becker for $512,000 in compensatory damages, and interest at seven percent annually from Sept. 8, 2005 until payment is made in full. Claimant Nancy Becker's claims were dismissed with prejudice. The parties each bore their respective costs.

Other Information

Nancy Becker had sought to dismiss her claims without prejudice, but respondents opposed the request and so she remained a party to the dispute. She was allowed to dismiss her claims with prejudice. The arbitration panel refused to postpone the arbitration proceedings pending a determination of the SEC's Division of Enforcement's Oct. 16, 2006 Motion to Dismiss administrative proceedings against the respondents. On Feb. 20, 2007, the SEC granted the motion and issued an order dismissing proceedings against the respondents. The arbitrators were Herb Schwartz, Donald Korn and Robert Greber.