Pacific Stock Exchange v. Cox Securities, et. al. ⇒ $1.54 million

The Law Offices of Cary S. Lapidus obtained an award of $1.54 million on behalf of the Pacific Stock Exchange who retained Lapidus as special counsel to prosecute the case. In addition to the monetary award, Lapidus obtained a Decision ordered the permanent bar of the Pacific Exchange member from membership with the Pacific Stock Exchange.

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“Cary Lapidus is probably the most well prepared attorney with whom I have ever dealt. He has excellent judgment and understanding of the law. Most important of all, he is highly ethical and those who deal with him know that his word is his bond.“
Paul Dubow
Opposing Counsel & Mediator in Six Cases

In The News

RULING: INVESTMENT EVEN TOO COMPLEX FOR BANK CEO
Arden Dale And Douglas Miller
Wall Street Journal
March 30, 2012

A financial industry arbitration panel in San Francisco has ruled that a former top Deutsche Bank executive is entitled to more than $870,000 for losses he sustained from investing in a family of complex collateralized bond obligations.
The Financial Industry Regulatory Authority panel ruled Thursday in support of James Zeigon, a former chief executive of Global Institutional Services for Deutsche Bank, who claimed First Republic Securities Co. 'failed to perform an adequate reasonable-basis suitability determination' before it sold him shares in a CBO.
At issue were Mr. Zeigon's investments in the Trainer Wortham First Republic CBO parts III, IV and V, plus the TW Tax Advantaged Fund LP.
Such suitability findings aren't unusual with complex investment products, but Mr. Zeigon's attorney, Cary Lapidus, argued the funds were too complex for even a top bank executive to understand, and thus were unsuitable as investments for anybody.
'It's very rare to have a bank president—with the kind of banks that he was president of—be a plaintiff,' Mr. Lapidus said. 'It's as if [J.P. Morgan Chase & Co. Chief Executive] Jamie Dimon was suing his brokerage and recovered money.'
The Finra panel ruled Mr. Zeigon was entitled to $870,631.50 to cover losses on an investment of $1.25 million that Mr. Lapidus said lost 70% in seven months. While Mr. Zeigon was ordered to surrender his ownership documents for one of the CBOs, Mr. Lapidus said they were 'not worth anything.'
An attorney for First Republic, Sara B. Brody of Sidley Austin LP in San Francisco, didn't return a call for comment. A spokeswoman for Finra said it doesn't comment on panel rulings.
Mr. Lapidus said the ruling demonstrated the panel's reluctance to accept a broker's usage of the 'sophisticated investor' defense when dealing with complicated investment products.
'Arbitrators are beginning to understand that these kind of toxic investments were being sold to sophisticated people, and even they were misled,' he said.

Please contact us for assistance with securities arbitration law, securities litigation, broker misconduct, investment advisor misconduct and investment losses.



	Pacific Stock Exchange v. Cox Securities, et. al. ⇒ $1.54 million The Law Offices of Cary S. Lapidus obtained an award of $1.54 million on behalf of the Pacific Stock Exchange who retained Lapidus as special counsel to prosecute the case. In addition to the monetary award, Lapidus obtained a Decision ordered the permanent bar of the Pacific Exchange member from membership with the Pacific Stock Exchange. Coutant v. Morgan Stanley Dean Witter, et. al. ⇒ $1.01 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.01 million on behalf of clients who alleged that their securities brokerage firm failed to diversity their account, placed them in unsuitable investments and misrepresented the risks of options trading. Smurzynski v. Kensington Wells, Inc., et. al. ⇒ $1.84 million (including $1 million in punitive damages and interest) The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.84 million including $1 million in punitive damages and interest for clients who alleged that the stocks they invested in were manipulated and that material facts were misrepresented to them. Breiman v. Round Hill Securities, Inc. et. al. ⇒ $1.44 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.44 million on behalf of clients who alleged fraud, breach of fiduciary duty and misrepresentations in connection with their securities portfolio. Levinthal v. First Republic Securities Company, LLC ⇒ $2.17 million The Law Offices of Cary S. Lapidus recovered $2.17 million for clients who sustained losses in a complex municipal arbitrage bond fund. The clients alleged that the fund was unsuitable for them and that the firm that recommended and sold the investment had failed to perform proper due diligence. The award is notable for awarding the full amount of the clients' damages, including out-of-pocket losses and arbitration expenses. WCM, LLC v. Cooper ⇒ $1.56 million (plus attorneys fees and expenses) The Law Offices of Cary S. Lapidus obtained an award of $1.56 million on behalf of a registered investment advisory firm and two of its partners who retained Lapidus to recover money allegedly misappropriated by one of their partners. In addition to the $1.56 million monetary award, Lapidus' clients were awarded their attorneys' fees and expenses. The arbitrator also found that the firm's expulsion of the partner was "For Cause". Dozens of settlements and awards on behalf of clients Cary S. Lapidus has obtained dozens of settlements, awards and judgments on behalf of his clients since leaving the Securities and Exchange Commission, where he worked in the Enforcement and Market Regulation Divisions. Teller v. Denison ⇒ $1.3 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.3 million, including in excess of $349,000 in attorneys' fees and costs on behalf of a client who alleged a breach of contract in connection with the private sale of securities. Bourdev v. JPMorgan Chase ⇒ $350,000 + revision of Form U-5 language $350,000 on behalf of a registered representative/banker who was terminated from JPMorgan Chase. After a full evidentiary hearing, a FINRA arbitration panel awarded $350,000 in compensatory damages for defamation and/or wrongful termination and ordered that the language on her Form U-5 be changed to reflect that she did not engage in any wrongdoing and that the company conducted a deficient investigation. Hall v. Morgan Stanley Dean Witter, et. al. ⇒ $1.76 million The Law Offices of Cary S. Lapidus obtained an arbitration award of $1.76 million for clients who sustained losses in a complex investment known as a Prepaid Variable Forward Contract. The clients also alleged the recommendation of unsuitable investments in their stock portfolio.
site navigation Profile Services Case Results Reviews In The News Contact Info Home Page “Cary Lapidus is probably the most well prepared attorney with whom I have ever dealt. He has excellent judgment and understanding of the law. Most important of all, he is highly ethical and those who deal with him know that his word is his bond.“ Paul Dubow Opposing Counsel & Mediator in Six Cases		In The News RULING: INVESTMENT EVEN TOO COMPLEX FOR BANK CEO Arden Dale And Douglas Miller Wall Street Journal March 30, 2012 A financial industry arbitration panel in San Francisco has ruled that a former top Deutsche Bank executive is entitled to more than $870,000 for losses he sustained from investing in a family of complex collateralized bond obligations. The Financial Industry Regulatory Authority panel ruled Thursday in support of James Zeigon, a former chief executive of Global Institutional Services for Deutsche Bank, who claimed First Republic Securities Co. 'failed to perform an adequate reasonable-basis suitability determination' before it sold him shares in a CBO. At issue were Mr. Zeigon's investments in the Trainer Wortham First Republic CBO parts III, IV and V, plus the TW Tax Advantaged Fund LP. Such suitability findings aren't unusual with complex investment products, but Mr. Zeigon's attorney, Cary Lapidus, argued the funds were too complex for even a top bank executive to understand, and thus were unsuitable as investments for anybody. 'It's very rare to have a bank president—with the kind of banks that he was president of—be a plaintiff,' Mr. Lapidus said. 'It's as if [J.P. Morgan Chase & Co. Chief Executive] Jamie Dimon was suing his brokerage and recovered money.' The Finra panel ruled Mr. Zeigon was entitled to $870,631.50 to cover losses on an investment of $1.25 million that Mr. Lapidus said lost 70% in seven months. While Mr. Zeigon was ordered to surrender his ownership documents for one of the CBOs, Mr. Lapidus said they were 'not worth anything.' An attorney for First Republic, Sara B. Brody of Sidley Austin LP in San Francisco, didn't return a call for comment. A spokeswoman for Finra said it doesn't comment on panel rulings. Mr. Lapidus said the ruling demonstrated the panel's reluctance to accept a broker's usage of the 'sophisticated investor' defense when dealing with complicated investment products. 'Arbitrators are beginning to understand that these kind of toxic investments were being sold to sophisticated people, and even they were misled,' he said. Please contact us for assistance with securities arbitration law, securities litigation, broker misconduct, investment advisor misconduct and investment losses.
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