Facts

Richard Klein filed an arbitration claim against Charles Schwab & Co. Inc. and Erin Gibbons related to Schwab's custody of a promissory note issued by a third party (New York Capital Advisors) in the claimant's Schwab account.

CLAIMANT'S CONTENTIONS:
Claimant alleged fraud, failure to supervise, unsuitable securities transactions, breach of covenant of good faith and fair dealing, breach of fiduciary duty, negligence, breach of contract, and negligent retention.

RESPONDENT'S CONTENTIONS:
Respondent denied the claims.

Damages

Claimant sought between $125,000 and $135,000 in compensatory damages.

Result

Claimant's claims were denied in their entirety, the panel recommended the expungement of the matter from respondent Erin Gibbons' FINRA records, and the panel assessed the hearing session fees of $6,750 to the claimant.

Other Information

ARBITRATORS: Martin A. Edelstein, Ann Pinciss Berman, and Andrew J. Gerber.