FINRA Panel Finds Independent Broker Dealer Liable For Sale Of DBSI Private Placements In North Carolina
A Raleigh, North Carolina Financial Industry Regulatory Authority (FINRA) arbitration panel struck a decisive blow to independent broker-dealer G.A. Repple & Company, finding them liable and ordering them to pay an individual investor $132,000 in compensatory damages. The Claimant asserted various causes of action including breach of duty of care and violations of the North Carolina Securities Act, among others as they related to the Claimant’s investment in DBSI 2008 private placement offerings. In addition to the compensatory damages, the panel assessed Repple with $4,500 of the forum fees of the arbitration. (FINRA# 10-02460; Harry M. Leete v. G.A. Repple & Company).
After the conclusion of the evidentiary hearing, the panel retired into an executive session to decide the case. It concluded that Repple was liable to the Claimant and ordered to pay him $132,000 in compensatory damages, in addition to $4,500 for their share of the forum fees of the arbitration. The Claimant had asked for $198,000, so the arbitrator’s award was 67% of the losses claimed.