Facts

Bernd Liebergesell and Annette Liebergesell filed a complaint against Dennis Pettinelli and Signator Investors Inc., in connection with claimants' investment in a Tenant in Common property referrd to as "Westway One."

Donald Bill, Gloria Bill, Dan White Revocable Living Trust, The Bill Family Trust dtd Nov 05, 2003, and Daniel White also filed a complaint against Pettinelli and Signator, as well as against Wells Investment Securities Inc., in connection with claimants' investments in two TIC properties, the Westway One, and Wells Exchange-Samson Way.

Both complaints were later consolidated.

CLAIMANTS' CONTENTIONS:
The Liebergessel claimants asserted causes of action for federal securities fraud, breach of fiduciary duty and constructive fraud, fraud and deceit, California securities fraud, unfair sales practices, negligence, and negligent misrepresentation.

The Bill claimants asserted causes of action for federal securities fraud, breach of fiduciary duty and constructive fraud, fraud and deceit, California securities fraud, unfair sales practices, negligence, and negligent misrepresentation.

RESPONDENTS' CONTENTIONS:
Respondents denied allegations, and asserted various affirmative defenses.

Damages

The Liebergessel claimants requested damages in the amount of $638,722, plus interest, punitive damages, fees and costs, and other relief. The Bill claimants requested damages exceeding $2 million, interest, punitive damages, fees and costs, and other relief. Pettinelli requested the expungement of his regulatory record.

Result

On or about July 31, 2013, the parties informed the FINRA Panel that they reached a settlement. The Panel then recommended the expungement of Pettinelli's registration records.

Other Information

ARBITRATORS: Richard L. Rubin, Pamela S. Mann and Shawn Ridgell