FINRA Panel Awards $4.1 Million to Family Trusts for Losses in CMOs and CDOs

A Newark, New Jersey Financial Industry Regulatory Authority (“FINRA”) Panel has awarded the Graham Jones Family Trust and the Graham Jones Charitable Remainder Trust a total of $4.1 million for losses sustained by the two trusts in bonds consisting largely of collateralized mortgage obligations (“CMOs”) and collateralized debt obligations (“CDOs”).

As typical of FINRA Awards, the Award did not include any rationale for the decision. The Statement of Claim alleged that the Respondents, Prestige Financial Center, Inc. (“Prestige”), Sloan Securities Corp. (“Sloan”), Harry Friedman (“Friedman”) and Carl Samuel Bronstein (“Bronstein”), made unsuitable recommendations, breached their fiduciary duties, and failed to supervise. The Statement of Claim requested damages of at least $1.3 million.

The Panel Awarded compensatory damages of $1.7 million against Sloan, $569,000 against Bronstein, and $1.9, jointly and severally, against Prestige and Friedman. FINRA Awards are payable within thirty days.

The Florida securities lawyers at Rabin Kammerer Johnson represent investors nationwide in FINRA arbitration matters. Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.