KYL successfully obtained a defense award from a FINRA arbitration panel on behalf of a major brokerage firm on a claim for approximately $1 million brought by a customer who alleged that her account underperformed the market, that the firm was responsible for a large loss on an outside real estate investment, and that the firm’s managers failed to supervise the registered representative and the account activity. KYL proved that the firm’s supervision was excellent and that the investments fit the account’s objectives and risk profile. KYL also proved both that the supervisors knew nothing about the outside real estate deal and that the claimant understood it was separate and apart from the brokerage firm. The arbitrators ordered claimant to pay $32,666 of the $35,000 in hearing session fees.
August 2, 2018