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.

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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

FROM THE MAILBAG: HOW TO COMPLAIN ABOUT YOUR BROKER
Herb Greenberg
San Francisco Chronicle
April 22, 1994

Stephen S., of Santa Rosa, writes: 'Yesterday I found out that my 77- year-old mother entrusted the greater part of her life savings -- all of $23,000 -- to a broker in late 1992 with instructions to purchase securities that would provide monthly dividend payments without great risk to principal. She knows nothing about investing. Her broker told her that she would gain or lose no more than $2,000 on her principal, and that she would receive monthly dividend checks that would fluctuate.
'As it turns out, her investment has declined by more than 30 percent, or $7,000. My mother claims that she contacted the broker on a few occasions over the past year with concerns about her declining principal, and was told that she was overlooking the good yield she was getting -- and was advised to hold the investment.
'Is there any legitimate complaint against the broker? If so, who should the complaint be addressed to, and what remedy, if any, should she seek?'
If you can prove your broker didn't follow your instructions -- and made unrealistic promises, such as what your losses or gains would be limited to -- you may have a case.
'If somebody tells a broker they don't want their principal at risk, and interest rates are low, then a fixed-income investment wouldn't be suitable for that customer,' says San Francisco securities attorney Cary Lapidus.
The best way to file a complaint would be to start by contacting the firm's branch manager. If he gives you the runaround, then write a formal complaint to the firm's compliance department. If that doesn't help, you'll probably have to arbitrate the complaint, which you can do yourself. (With a loss of just $7,000, it probably wouldn't pay to hire an attorney. But there are a number of services designed to help small investors.)
What remedy should your mother seek? It never hurts to start by asking for everything. Some firms will pay the entire amount to shut you up and make you happy. Others will reach a compromise -- somewhere in the middle. Still others may feel your complaint isn't justified, and will offer nothing.
Most of your mother's investments were in bond mutual funds. Like many unsophisticated investors, it sounds like she made the mistake of buying them just as interest rates hit bottom. The lower interest rates are, the greater the risk because (I might sound like a broken record, but this is important) as interest rates rise, your principal -- the amount you invested -- falls.
That's the trouble with bond funds. Unlike individual bonds, they never mature, so you're never guaranteed of getting all of your money back when interest rates rise.

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



	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. 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. 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. 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". 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. 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. 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. 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. 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.
site navigation Attorney Profile Practice Areas 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 FROM THE MAILBAG: HOW TO COMPLAIN ABOUT YOUR BROKER Herb Greenberg San Francisco Chronicle April 22, 1994 Stephen S., of Santa Rosa, writes: 'Yesterday I found out that my 77- year-old mother entrusted the greater part of her life savings -- all of $23,000 -- to a broker in late 1992 with instructions to purchase securities that would provide monthly dividend payments without great risk to principal. She knows nothing about investing. Her broker told her that she would gain or lose no more than $2,000 on her principal, and that she would receive monthly dividend checks that would fluctuate. 'As it turns out, her investment has declined by more than 30 percent, or $7,000. My mother claims that she contacted the broker on a few occasions over the past year with concerns about her declining principal, and was told that she was overlooking the good yield she was getting -- and was advised to hold the investment. 'Is there any legitimate complaint against the broker? If so, who should the complaint be addressed to, and what remedy, if any, should she seek?' If you can prove your broker didn't follow your instructions -- and made unrealistic promises, such as what your losses or gains would be limited to -- you may have a case. 'If somebody tells a broker they don't want their principal at risk, and interest rates are low, then a fixed-income investment wouldn't be suitable for that customer,' says San Francisco securities attorney Cary Lapidus. The best way to file a complaint would be to start by contacting the firm's branch manager. If he gives you the runaround, then write a formal complaint to the firm's compliance department. If that doesn't help, you'll probably have to arbitrate the complaint, which you can do yourself. (With a loss of just $7,000, it probably wouldn't pay to hire an attorney. But there are a number of services designed to help small investors.) What remedy should your mother seek? It never hurts to start by asking for everything. Some firms will pay the entire amount to shut you up and make you happy. Others will reach a compromise -- somewhere in the middle. Still others may feel your complaint isn't justified, and will offer nothing. Most of your mother's investments were in bond mutual funds. Like many unsophisticated investors, it sounds like she made the mistake of buying them just as interest rates hit bottom. The lower interest rates are, the greater the risk because (I might sound like a broken record, but this is important) as interest rates rise, your principal -- the amount you invested -- falls. That's the trouble with bond funds. Unlike individual bonds, they never mature, so you're never guaranteed of getting all of your money back when interest rates rise. Please contact us for assistance with securities arbitration law, securities litigation, broker misconduct, investment advisor misconduct and investment losses.
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