Facts

Claimant Frank R. Lopez, an allegedly clinically blind elderly man of 91 years, initiated an arbitration proceeding with respondent Wells Fargo Investments seeking the losses sustained in his investment account as a result of the $500,000 purchase in 2008 of the preferred stocks issued by AIG, Wells Fargo, and "Fannie Mae."

CLAIMANT'S CONTENTIONS:
Lopez claimed that he had been defrauded by his broker and that the preferred stocks were unsuitable for him. Lopez alleged wrongful conduct, breach of fiduciary duty, breach of written contract, constructive fraud, fraud by misrepresentation and omission, and failure to supervise. He also alleged violations of state and federal securities laws and NASD Rules of Fair Practice and NYSE Rules, as well as elder abuse.

RESPONDENT'S CONTENTIONS:
Wells Fargo argued that in spite of Frank Lopez's advanced age, he made an intelligent and informed decision to invest in the preferred stocks. Wells Fargo also argued that the investments were suitable for Frank Lopez based on the information he provided to his broker concerning his financial condition and risk tolerance, and that any losses realized in his account were market driven and not recoverable as a matter of law.

Damages

Lopez sought at least $32,912 in general and compensatory damages, as well as lost opportunity costs, costs of proceedings, punitive damages, interest, attorney fees and costs, rescission of investment, and damages for elder abuse.

Result

The arbitrator denied Lopez's claims.