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Securities
Fraud
Real Estate Investments

Heinrich Hardt, Araceli Hardt, Hardt Family Trust dated June 8, 1978, Hardt Family Trust dated February 22, 2008 v. LPL Financial LLC, Orchard Securities LLC, Meridian Capital Partners LLC

Published: Mar. 10, 2012 | Result Date: Feb. 10, 2012 | Filing Date: Jan. 1, 1900 |

Case number: 11-00347 Arbitration –  $1,367,000

Court

FINRA


Attorneys

Claimant

Brian D. Miller
(Miller & Milove)


Respondent

Nathan W. Lamb
(Ulmer & Berne LLP)

David J. Freniere
(Markun, Zusman, Freniere & Compton LLP)

John A. Snow

David S. Markun
(Markun, Zusman, Freniere & Compton LLP)


Facts

Claimants filed suit against respondents for federal securities fraud, breach of fiduciary duty, fraud and deceit, California securities fraud, unfair sales practice, negligence, elder abuse, and declaratory relief. The claims related to the purchase by the claimants of two separate tenant-in-common interests in real estate projects sponsored by Direct Invest.

Damages

Claimants requested compensatory damages and/or relief from mortgage liability in an amount exceeding $8 million, a declaration that respondents would indemnify claimants from liability, punitive damages, and attorney fees.

Result

Meridian Capital Partners and Orchard Securities, LLC settled for a confidential amount. The arbitrators found respondent LPL Financial LLC to be liable and ordered it to pay $1,367,000.


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