Hillcrest Children's Center, Hillcrest Funding LLC v. Charles Schwab & Co. Inc.
Published: May 31, 2014 | Result Date: May 12, 2014 | Filing Date: Jan. 1, 1900 |Case number: 13-00664 Arbitration – $750,000
Court
FINRA
Attorneys
Claimant
Respondent
Gilbert R. Serota
(Arnold & Porter Kaye Scholer LLP)
Geoffrey S. Beckham
(Wells Fargo Advisors LLC)
Facts
Hillcrest Children's Center filed for arbitration against Charles Schwab & Co. Inc.
Contentions
PLAINTIFF'S CONTENTIONS:
Hillcrest asserted causes of action for failure to safeguard client assets, breach of fiduciary duty, negligence, breach of contract, violation of federal securities laws, violation of state and federal laws, vicarious liability, respondeat superior, control personal liability, and violation of equitable principles. The causes of action related to multiple wire transfers of funds, which Hillcrest alleged were unauthorized, and the use of speculative margin trading with Hillcrest's accounts.
DEFENDANT'S CONTENTIONS:
Charles Schwab denied the allegations and asserted various affirmative defenses.
Damages
Hillcrest sought $7 million in compensatory damages.
Result
The arbitration panel found that Charles Schwab was liable to Hillcrest for $750,000.
Other Information
ARBITRATORS: Paul Davis Pearlstein, Mary E. Woytek and Armand Philip Lione.
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