Brewer Financial Hit for Compensatory and Punitive Damages

A Boca Raton, FL FINRA arbitrator awarded the Claimant nearly $200,000 in a recent arbitration case. The Claimant asserted various causes of action including fraud, breach of fiduciary duty, negligence and failure to supervise against Respondent, Brewer Financial. At the conclusion of his evidence, the Claimant requested $87,448.30 in actual damages and $75,000 in punitive damages.

Interestingly, the Respondent Brewer did not appear at the hearing notwithstanding having been given proper notice. The arbitrator determined that Brewer was required to submit to arbitration and be bound by the decision arrived at on the issues. Brewer’s registration with FINRA was terminated on December 22, 2010.

The sole arbitrator found that Brewer committed fraud and breached their fiduciary duty to the Claimant, in addition to failing to supervise and control its employee. He awarded $87,448.30 in compensatory damages, $1,125 in monetary sanctions for a Motion to Compel, $75,000 in punitive damages, $31,824.77 in interest and costs in the amount of $2,478.62. Brewer was also ordered to reimburse Claimant for the filing fee of $300 and assessed the hearing cost of $1,350. (FINRA# 10-01639; Willard J. Friedman et al v. Brewer Financial Services, LLP)

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