Facts

Bijan Dokhanian, Shaldokht Dokhanian, S&B Dokhanian Family Trust U/T/A 10/3/05, Michael Sadeghan, and Sean and David Sadgan brought claims in arbitration against Interactive Brokers LLC. Interactive Brokers brought a third party claim against Ascendant Asset Advisors.

CLAIMANTS' CONTENTIONS:
Claimants alleged that in relation to certain of their investments respondent committed breach of contract, promissory estoppel, intentional fraud, fraud in the inducement, violation of California Securities Laws, violation of California Consumer Legal Remedies Act, negligent misrepresentation, negligence, breach of fiduciary duty, and conversion or unjust enrichment.

RESPONDENT'S CONTENTIONS:
Interactive Brokers denied the allegations made by claimants and argued that Ascendant was liable and required to indemnify Interactive Brokers. Ascendant denied the allegations of Interactive Broker's third party claim.

Damages

Bijan Dokhanian, Shaldokht Dokhanian, and S&B Dokhanian Family Trust U/T/A 10/3/05 claimed compensatory damages of $3,589,077 ($1,671,975 Net Out-of-Pocket) and Michael Sadeghan claimed compensatory damages of $161,912 ($68,397 NOP).

Result

After the arbitration hearing, the panel found Interactive Brokers liable to Bijan Dokhanian, Shaldokht Dokhanian, and S&B Dokhanian Family Trust U/T/A 10/3/05 for $769,000 in compensatory damages. The panel further found Interactive Brokers liable to Michael Sadeghan for $31,000 in compensatory damages. On Interactive Brokers third-party claims, the panel found that Ascendant was liable to Interactive Brokers for $640,000 in compensatory damages.

Other Information

ARBITRATORS: Robert B. Hansohn, Arthur F. Brueggeman, John Marius Baker