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

SAN FRANCISCO FIRM ORDERED TO PAY $750,000
A Madoff-related Case
Nathan Becker
Wall Street Journal
December 15, 2010

A San Francisco financial-services firm has been ordered to pay a family trust $750,000 after recommending it invest in a fund that indirectly funneled money to imprisoned swindler Bernard Madoff.
In 2007, Lenore and Charles Bleadon, owners of a family trust long managed by brokerage firm Stone & Youngberg LLC, were approached by firm advisers who recommended the Bleadons invest in a fund that turned out to have indirectly funneled money to Madoff's company, according to case-related documents submitted to the Financial Industry Regulatory Authority by the Bleadons' lawyer, Cary Lapidus.
According to the document, Stone & Youngberg ''did not engage in any meaningful due diligence in complete disregard to its fiduciary duty to its clients. Stone & Youngberg conducted no investigation of the ultimate destination of its clients' funds--Madoff Securities.''
A message left with a Stone & Youngberg representative wasn't immediately returned.
The San Francisco FINRA arbitration panel ruled in favor of the Bleadons, who own the Kay Family Revocable Trust.
Other rulings have been made in similar cases, with arbitration panels awarding money directly from feeder funds to investors--but Lapidus said he thinks this is the first situation in which a brokerage firm, rather than the feeder fund itself, has been ordered to pay investors.
Lapidus said he expects ''there will be a tsunami of lawsuits against brokerage firms that recommended Madoff feeder funds to their clients as a result of this award.''
Madoff pleaded guilty to running a huge Ponzi scheme in March 2009. He is serving a 150-year sentence in a North Carolina federal prison.

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. 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. 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. 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. 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. 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. 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". 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. 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. 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 SAN FRANCISCO FIRM ORDERED TO PAY $750,000 A Madoff-related Case Nathan Becker Wall Street Journal December 15, 2010 A San Francisco financial-services firm has been ordered to pay a family trust $750,000 after recommending it invest in a fund that indirectly funneled money to imprisoned swindler Bernard Madoff. In 2007, Lenore and Charles Bleadon, owners of a family trust long managed by brokerage firm Stone & Youngberg LLC, were approached by firm advisers who recommended the Bleadons invest in a fund that turned out to have indirectly funneled money to Madoff's company, according to case-related documents submitted to the Financial Industry Regulatory Authority by the Bleadons' lawyer, Cary Lapidus. According to the document, Stone & Youngberg ''did not engage in any meaningful due diligence in complete disregard to its fiduciary duty to its clients. Stone & Youngberg conducted no investigation of the ultimate destination of its clients' funds--Madoff Securities.'' A message left with a Stone & Youngberg representative wasn't immediately returned. The San Francisco FINRA arbitration panel ruled in favor of the Bleadons, who own the Kay Family Revocable Trust. Other rulings have been made in similar cases, with arbitration panels awarding money directly from feeder funds to investors--but Lapidus said he thinks this is the first situation in which a brokerage firm, rather than the feeder fund itself, has been ordered to pay investors. Lapidus said he expects ''there will be a tsunami of lawsuits against brokerage firms that recommended Madoff feeder funds to their clients as a result of this award.'' Madoff pleaded guilty to running a huge Ponzi scheme in March 2009. He is serving a 150-year sentence in a North Carolina federal prison. Please contact us for assistance with securities arbitration law, securities litigation, broker misconduct, investment advisor misconduct and investment losses.
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