FINRA Panel Orders Wedbush to Pay $750,000 in Damages
A Financial Industry Regulatory Authority (FINRA) arbitration panel in San Francisco, California has found Webush Morgan Securities liable and ordered them to pay a family trust $750,000 in compensatory damages. Forum fees of the arbitration were split equally between the parties. (FINRA# 09-06884; Stanley G. Kazezski, Lillian J. Kazezski, Kazezski Family Trust DTD 09/26/90 v. Wedbush Morgan Securities, Inc. and Lisa Ann Gallo).
The FINRA arbitration award indicates that the Claimants asserted various causes of action, including breach of fiduciary duty, unsuitability, failure to diversify or concentration, negligence and failure to supervise, among others. The claims related to a concentrated position of Pacific Capital Bancorp stock in the family trust.