Two Recent FINRA Arbitrations Involving Deceased Customers
In the Matter of FINRA Arbitration Between Mary Pihiak v. Edward Jones(FINRA Arbitration 10-04120, Sep. 9, 2011), the sole FINRA Arbitrator found Edward Jones liable. Edward Jones was ordered to pay $24,920.98 in compensatory damages plus $7,750 in attorneys’ fees to the Petitioner.
In another FINRA Arbitration, the Claimant alleged negligence, breach of fiduciary duty, and negligent supervision by Morgan Stanley Smith Barney, LLC, Respondent. Claimant alleged it incurred tax consequences as a result of MSSB precluding the Executor of the David N. Russell 2000 Trust to reinvest into a the trust a mandatory required cash distribution. Claimants sought $33,831.00 in compensatory damages plus attorneys’ fees.
In the Matter of the FINRA Arbitration Between Steven Russell & Ronni Pitiger, as Trustees of the David N. Russell 2000 Trust v. Morgan Stanley Smith Barney, LLC (FINRA Arbitration 10-02604, Sep. 9, 2011), the sole FINRA Arbitrator did not find the distinction of an Executor being a spouse or child as determinative in the case. The Arbitrator found that the Respondent wrongfully precluding the Executor from reinvesting a mandatory required cash distribution.
The FINRA Arbitrator ordered Respondent to pay Claimant $33,831.00 in compensatory damages plus 6% statutory predjugment interest, $3,750 to reimburse expert witness costs, and $150 to reimburse nonrefundable portions of Claimant’s filing fee.
See Bill Singer, Two Grave FINRA Arbitrations Involving Deceased Customers, Forbes, Sep. 14, 2011.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.