Finra panel awards $815,000 to National Asset Management client over fiduciary breach

Finra panel awards $815,000 to National Asset Management client over fiduciary breach
But arbitrators said 30% of the fault lies with the 'negligent' claimants.
APR 22, 2019

A Finra arbitration panel has ordered National Asset Management to pay more than $815,000 in compensatory damages in a case going back to 2015 involving charges of unsuitable trading practices. While claimants in the case, two trusts of William M. Butler Jr., asked for damages in the amount of $1.87 million, the Financial Industry Regulatory Authority Inc. panel determined that while National Asset Management breached its fiduciary duties, the claimants were also negligent. More: Finra panel awards schoolteachers $2.38 million in fraud case As a result, the Finra panel apportioned 30% of the fault to them and denied all claims other than breach of fiduciary duty. The claimants charged that National Asset Management and its registered representative engaged in fraud, breached Illinois blue sky laws, violated the state's Financial Exploitation of an Elderly Person statute, and engaged in unsuitable trading strategies that involved writing call options and buying penny stocks, Chinese stocks and a leveraged exchange-traded fund. In total, the claimants will receive $815,335.71 in compensatory damages, plus interest, $326,134.29 in attorneys' fees and $3,766.81 in costs. More: Better screening by Finra could curb expungements The panel also decided to deny an expungement request by the registered representative involved.

Latest News

Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface
Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface

Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.

MetLife poll finds high-value home sales are becoming tax-planning events
MetLife poll finds high-value home sales are becoming tax-planning events

A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.