Securities America Hit With $1.2 Million Award On New Year's Eve
What a way to celebrate the New Year!
A Los Angeles FINRA arbitration panel sent a message to Securities America, Inc. on New Year’s Eve, ordering the firm to pay nearly $1.2 million to investors who lost money in Medical Capital promissory notes. According to the award, the Claimant alleged breach of fiduciary duty; fraud and deceit; intentional misrepresentation of fact; negligence; negligent supervision and financial elder abuse. The award against Securities America and its broker, Randall Ray Talbott, was based on what was actually known by them and not based upon what they could have known or discovered.
The huge award for the Claimant, Josephine Wayman, was awarded $734,118 in compensatory damages, $250,000 in punitive damages, $111,465 for attorney’s fees, in addition to $59,883 for litigation costs and expert witness fees. The Respondent, Securities America was also assessed the entire amount of $16,800 for forum fees of the arbitration.
Further comment in the award by the panel stated that if the Claimant should “receive payments from other sources trying to recover money for her investments directly from the company offering the investment”, then “she is entitled to keep the same as additional punitive damages.” (FINRA# 10-00012; Josephine Wayman v. Securities America, Inc. and Randall Ray Talbott)