Facts

Martina Hutchinson, individually and as a member of ARI-IBP 8, LLC, and as a member and manager of DRG Cason Estates TIC 23, LLC filed a complaint against First Allied Securities Inc., in connection with Hutchinson's purcahse of ARI-International Business Park LLC Tenant in Common, DRG Cason Estates LLC Tenant in Common and Texas Energy Holdings Inc.'s Equitas Drilling Program.

First Allied filed a third-party complaint against Michael Peitro. In response, Pietro filed a counter-complaint against First Allied.

CLAIMANT'S CONTENTIONS:
Hutchinson asserted causes of action for violation of federal securities laws; violation of California securities law; California unfair, unlawful, and fraudulent business practices; violation of the Securities Act of Arizona; violations of Arizona Consumer Fraud Act; violations of Arizona Insurance Code Provisions prohibiting unfair practices and fraud; breach of contract; common law fraud; breach of fiduciary duty; and negligence and gross negligence.

RESPONDENT'S CONTENTIONS:
First Allied denied Hutchinson's allegations, and asserted various affirmative defenses.

THIRD PARTY CLAIMANT AND COUNTER-RESPONDENT'S

Damages

Hutchinson sought at least $2,199,992 in damages.

Result

Hutchinson settled with First Allied, resulting in the FINRA Panel dismissing her lawsuit against First Allied. Then, the FINRA Panel found DiPietro liable to First Allied for $100,000 in compensatory damages and post-judgment interest at the rate of 8 percent per annum. DiPietro was also liable to First Allied for $56,048 in attorney fees and $1,458 in witness fees. As such, the Panel denied DiPietro's third party counterclaim in its entirety. First Allied also requested for expungement, which the Panel denied. The Panel also denied all other relief, including punitive or exemplary damages.

Other Information

ARBITRATORS: Paul A. Cash, Jr., Brian W. Yee and Steven M. Guttell