Texas Couple Awarded $925,000 Against Raymond James (RJF)
An arbitration panel in Dallas awarded a Celina couple, Rex and Sherese Glendenning, $925,000 resulting from the purchase of auction rate securities (FINRA# 09-00826; Rex Glendenning and Sherese Glendenning v. Raymond James & Associates and Larry C. Milton). They had asked the panel to award them $1.4 million. The broker, Larry Milton, from Ft. Worth had consolidated funds from various certificates of deposit in January 2008 which he invested in auction rate securities consisting of sewer revenue bonds. The couple said that they never talked to Mr. Milton about auction rate securities (ARS) or warned about the liquidity risk involved. They thought the investment was as safe as cash. Unfortunately, the auction rate securities market froze in February 2008 causing investors to be unable to access their cash. The panel found Raymond James and Larry Milton jointly responsible for the losses sustained by them an ordered them to buy back the securities for $925,000. One of the three arbitrators registered a dissent to the award saying “My dissent is in the size of the award. I believe the award to the Glendennings should be $1.4 million instead of $925,000.” Since arbitration awards do not have to be unanimous, the award stands with the noted dissent.