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Our research and testimony frequently result in awards, decisions and orders. See what our experts have been working on.

Displaying 10 out of 12 results

Golden v Genspring - $4.55 Million "Low Volatility" Hedge Fund Award

In December 2012, a JAMS arbitrator in Miami, FL ordered GenSpring Family Offices to pay the Claimant $4.55 Million in out of pocket losses an rescission. The award was made after a hearing wherein the Claimant alleged that the Respondent invested in low volatility hedge funds in lieu of traditional bonds. Dr. McCann testified on behalf of the Claimant.

Dale v Morgan Keegan - $1.38 Million (MKIBX) Award

In December 2012, a FINRA arbitration panel in Dallas, Texas ordered Morgan Keegan to pay $1.38 Million in compensatory damages plus interest at the rate of 5% accruing from October 4, 2010 through and including October 1, 2012, attorneys fees and costs in connection with Morgan Keegan's sale of the RMK Select Intermediate Bond Fund (MKIBX). Dr. O'Neal testified on behalf of the Claimants.

Straccia et al v Ceros Financial Services - $1.82 Million Leveraged and Inverse ETF Award

In November 2012, a FINRA arbitration panel in Manchester, NH ordered Focus Capital, Inc., Focus Capital Wealth Management, Inc. and Nicholas B. Rowe to pay Claimants $1.82 Million including $442,829 in attorneys' fees, $19,836 in costs and $30,000 in expert witness fees. The award was made after a hearing wherein the Claimants alleged that Respondents invested in unsuitable leveraged and inverse ETFs. Dr. McCann testified on behalf of the Claimants.

Roberts v ThinkEquity - $1.475 Million ARS Award

In October 2012, a FINRA arbitration panel in New York, NY ordered ThinkEquity to redeem at par $1.475 Million of auction rate securities remaining in the Claimant's accounts. The award was made after a hearing wherein the Claimant alleged that Respondents breached fiduciary duties and misrepresented the ARS. Dr. McCann testified on behalf of the Claimant.

Burford v JP Morgan Chase Bank - $18 Million + Variable Prepaid Forward VPF Award

In October 2012, the Oklahoma District Court in Tulsa, OK ordered JP Morgan Chase Bank to pay the Burford Trust $18,122,644 plus attorneys' fees and punitive damages to be determined. The award compensates the Trust for the diminution in value resulting from JP Morgan engaging in a series of variable prepaid forward contracts with the Trust. Dr. McCann testified at the hearing that the VPFs were high cost, opaque and not properly characterized in the presentations and that investment of the VPF proceeds in a municipal bond fund with interest paid to the income beneficiary virtually guaranteed that the Trust's Exxon-Mobil stock position would eventually be fully covered by the VPFs and ultimately sold off. Mr. Meyer testified about the pressures to sell in-house products and services without regard for the interests of the Trust beneficiaries.

Wagner v Wells Fargo - $2.225 Million ARS Award

In May 2012, a FINRA arbitration panel in Los Angeles, CA ordered Wells Fargo to redeem at par $2.225 Million of auction rate securities and to pay Claimants losses on ARS the Claimants had sold at a loss. The award was made after a hearing wherein the Claimants alleged that Respondents breached fiduciary duties and misrepresented the ARS. Mr. Meyer testified on behalf of the Claimants.

Zeigon v First Republic - $870,631 TW Tax Advantaged Fund Award

In March 2012, a FINRA arbitration panel in San Francisco, CA ordered First Republic Securities to pay the Claimants $870,631 over the sale of a collateralized bond obligation (CBO) and the TW Tax Advantaged Fund LLC leveraged municipal bond arbitrage hedge fund. The panel dismissed claims on two of three CBOs based on FINRA's six-year eligibility rule and awarded the Claimant's 75% of the remaining out-of-pocket losses. Mr. Meyer testified about compliance and sales practices on behalf of the Claimants. Dr. McCann testified about the investments on behalf of the Claimants.

Rote v Morgan Keegan - $400,000 (MKIBX, RMH) Award

In February 2012, a FINRA arbitration panel in Memphis, TN ordered Morgan Keegan to pay $400,000 in damages to Claimants after a hearing in which Claimants alleged that Morgan Keegan misrepresented the risks of the Select Intermediate Bond Fund (MKIBX) and the High Income Fund (RMH). Dr. McCann testified on behalf of the Claimants.

Jenkins v Crowell Weedon - $51,807 Preferred Stock Award

In February 2012 a FINRA panel in Los Angeles awarded Claimant $51,807 in compensatory damages, the full amount sought. The award was made after a hearing in which the Claimant alleged that the broker's professional obligation to assist clients in setting proper investment objectives and risk tolerance was improper. Mr. Meyer testified on behalf of the Claimant as to the unfavorable risk/return characteristics of preferred stocks and their unsuitability for most retail investors.

Hayes v Banc of America Securities - $1.4 Million CLO Award

In January 2012, a FINRA arbitration panel in Reno, NV ordered Banc of America Securities to pay the Claimant $1.375 Million including $218,344 in attorneys' fees and $23,500 in expert witness fees over the sale of the E-1 Notes of LCM VII, a collateralized loan obligation. The award was made after a hearing in which the Claimant alleged that Respondents violated Nevada's securities fraud statute by failing to disclose that losses in the loans backing the CLO prior to the issuance of the CLO were being transferred to the CLO investors and would make the CLO notes much less valuable and much more risky. Dr. McCann testified on behalf of the Claimant.

Research
CLOs, Warehousing, and Banc of America's Undisclosed Losses

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