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Compliance February 16, 2010
Broker Held Accountable for Sister's Investment Losses
A woman who sued her stockbroker brother won $608,000 under the
decision a Financial Industry Regulatory Authority (FINRA) arbitration
panel.
Reported by PLANADVISER Staff
Diana Hojecki and her husband, James, will take home $343,000 in compensatory damages, $15,000 in fees, and $250,000 in punitive damages, according to a report in InvestmentNews.
According to an announcement from Mark Tepper, the couple’s attorney, the couple suffered a nearly 80% investment loss during a three to four month period, while their portfolio was under management of Hojecki’s brother Kenneth Popek and Tampa-based brokerage firm Calton & Associates, Inc. The news report said the portfolio included shares of General Motors Co., Lehman Brothers Holdings Inc., and Washington Mutual Inc—all of which collapsed in the credit crisis.
The panel also awarded punitive damages against the brokerage firm, which, alongside Popek, has filed an appeal, according to the news report.
The panel also denied Popek’s request to expunge the matter from his records, according to the announcement.