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Securities
Breach of Fiduciary Duty
Failure to Recommend Risk Management Strategies

R. Kent Emigh, individually and as Trustee of the R. Kent Emigh Trust UA DTD 1/31/86 v. Wedbush Securities Inc., Lisa Ann Gallo

Published: Aug. 27, 2011 | Result Date: Aug. 2, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 10-01700 Arbitration –  Claim Denial

Court

FINRA


Attorneys

Claimant

Andrew V. Tramont


Respondent

Charles B. LaChaussee
(Wedbush Securities Inc.)


Facts

R. Kent Emigh entered into arbitration with Wedbush Securities Inc. and Lisa Gallo regarding investments in Pacific Capital Bancorp securities.

Contentions

CLAIMANT'S CONTENTIONS:
Emigh alleged breach of fiduciary duty, unsuitability, failure to recommend risk management strategies, negligent, negligent supervision, and breach of contract.

RESPONDENT'S CONTENTIONS:
Wedbush and Gallo denied the allegations.

Damages

Emigh sought $2.5 million in damages, as well as punitive damages, interest, and costs.

Result

The arbitration panel denied Emigh's claims. Moreover, the panel ordered the expungement of information concerning the matter regarding Lisa Gallo from the CRD system.

Other Information

ARBITRATORS: Ralph A. Cotton, Thomas C. McNally, Louis A. Napoli.


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