Brezden et al v Associated Securities - $8.9 Million Hedge Fund Award
In March 2009, a FINRA Dispute Resolution panel, in an explained decision, awarded $8.9 million to a group of Claimants who invested in an speculative options trading vehicle called APEX Equity Options Fund, LP. The panel concluded that the broker, who was also a registered investment advisor, deliberately misled these customers by telling them Apex was a safe, income-producing security. In fact, the fund was very risky, and the Claimants lost their entire investment. The panel also found the broker's employer, Associated Securities Corp., independently liable for its failure to supervise the broker. On behalf of the Claimants, Mr. Meyer testified about a firm's duties to supervise.