Robert E. Lee, individually and as Trustee of the Robert Earl Lee Revocable Trust dated April 1, 2008; Buford E. McCrae ("B.E. McCrae"), individually and on behalf of the B.E. McCrae Family Limited Partnership; Beatrice M. McCrae, individually and on behalf of the B.E. McCrae Family Limited Partnership and Victor Stefanovic v. CapWest Securities In
Published: Nov. 5, 2011 | Result Date: Jul. 29, 2011 | Filing Date: Jan. 1, 1900 |Case number: 10-01343 Arbitration – $831,860
Facts
Robert Lee, individually and as Trustee of the Robert Earl Lee Revocable Trust dated April 1, 2008; Buford E. McCrae (McCrae), individually and on behalf of the B.E. McCrae Family Limited Partnership; Beatrice M. McCrae, individually and on behalf of the B.E. McCrae Family Limited Partnership and Victor Stefanovic filed a complaint against CapWest Securities Inc. related to the recommendation and investment in high risk illiquid investments.
Claimants alleged violations of Federal Securities Laws, Texas Securities Act, Texas Deceptive Trade Practices, Colorado Securities Act, Virginia Securities Laws, breach of contract, common law fraud, breach of fiduciary duty, and negligence as well as gross negligence.
Damages
Claimants requested actual and compensatory damages in the amount of $765,000.
Result
Respondent was found liable for $137,000 to Lee, individually and on behalf of the trust; $478,500 plus $37,330 and $95,180 in interest to McCrae individually and on behalf of the partnerships; $17,450 in punitive damages to Lee, individually and as trustee; $57,370 in punitive damages to McCrae and the partnerships; $9,030 as costs and $100,000 in attorney fees to McCrae and the partnerships. Stefanovic's claims were withdrawn and dismissed. Any other relief were denied.
Other Information
ARBITRATORS: Robert L. Chisolm, James W. Kerr Jr., Richard F. Schaufert.
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