Lincoln Financial Advisors Hammered For $1.76M
A Financial Industry Regulatory Authority (FINRA) arbitration panel in Los Angeles, CA has found Lincoln Financial Advisors Corporation liable and ordered it to pay a family trust $1.76 million in compensatory damages. In the case that was decided on April 27, 2001, the Trustees of the Wright Family Trust had asserted various claims including negligent misrepresentation, fraud, failure to supervise, breach of fiduciary duty and breach of contract, among other things. The claim revolved around investments in various Mount Yale mutual funds, Johnston Asset Management International Equity Fund, Kinetics Advisers Institutional Partners Fund and Rye Select Broad Market Fund, a feeder fund for a fund managed by Bernard L. Madoff Investment Services LLC.
The Claimants requested $1.5 million in compensatory damages. After the conclusion of the evidentiary hearing, the panel took the case under advisement and rendered the following decision: Respondents, John Marshall, Rollance Verkennis and Lincoln Financial, are jointly and severally liable to Claimants for $1,170,500 in compensatory damages; Respondent Lincoln Financial is solely liable to Claimants for $590,000 in compensatory damages and Lincoln Financial is solely liable to Claimants fro $600 for the non-refundable portion of the filing fee. Additionally, the panel assessed the entire $22,800 in forum fees for the arbitration against Lincoln Financial. (FINRA# 10-01192; Andrew and Blenda Wright as Trustees of the Wright Family Trust v. John Marshall, Rollance Verkennis and Lincoln Financial Advisors Corporation).
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