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