Facts

Jane Ellison Usher, both individually and as trustee for the Jane Ellison Usher Trust of Oct. 20, 2000, and as custodian for Samuel T. Usher and Jackson A. Usher under the Uniform Gifts to Minors Act, and Samuel T. Usher filed a complaint against Todd A. Brooks, Scott S. Brooks, Bambi I. Holzer, and Wedbush Securities Inc. related to investments in various securities.

Claimants asserted fraudulent misrepresentation and omissions; intentional and negligent breach of fiduciary duty; securities fraud; negligence; and failure to supervise Holzer.

Damages

Claimants sought compensatory damages of $1,657,996; interest; punitive damages, and other relief.

Result

Claimants dismissed all claims against Todd Brooks and Scott Brooks. The FINRA panel awarded a total of $1,405,393 in compensatory damages to claimants which consisted of $1,119,780 payable by Holzer alone and $285,613, payable by both Holzer and Wedbush. The panel also ordered claimants to assign and transfer all rights, title, and interest to specific securities as a condition of and in return for the full amounts of the awards paid to claimants. Alternatively, the parties may negotiate the values of the specified securities if claimants choose to retain any. The Panel recommended expungement from Todd Brook's CRD record and found that the allegations against him were false. Holzer's request for expungement was denied.

Other Information

ARBITRATORS: Kirtley M. Thiesmeyer, Holly Banafsheh, Anna Marie Turco. Todd A. Brooks and Scott S. Brooks are in pro per.