The Financial Industry Regulatory Authority (FINRA) recently awarded an elderly investor more than $1 million in an arbitration claim.
According to InvestmentNews, ninety two year old Genevieve Lenehan claimed former Morgan Stanley broker Justin Amaral churned and reverse-churned her accounts. Following the death of her husband five years ago, Ms. Lenehan’s attorney alleged Mr. Amaral devised a strategy of buying and selling closed-end funds and IPOs to generate fees. Furthermore the transactions were allegedly executed without Ms. Lenehan’s knowledge or consent.
InvestmentNews further reports that Ms. Lenehan’s attorneys alleged that in one instance Mr. Amaral forged Ms. Lenehans signature in order to liquidate and acquire annuities.
The FINRA arbitration held Mr. Amaral and Morgan Stanley jointly liable and awarded Ms.Lenahan $1.06 million, which included compensatory damages and attorneys’ fees.
The foregoing information, which is publicly available on Investment New’s website, is being provided by The White Law Group.
Brokerage firms have a responsibility to monitor their brokers and ensure that investments recommendations are in line with the client’s age, risk tolerance and investment objective. When brokers conduct excessive and unnecessary trades on client’s account, as was the case involving Mr. Amaral, the firm they work for can be held liable for failure to supervise and responsible for investment losses.
If you believe you were taken advantage of by your financial advisor and suffered losses, please call The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.