NASD arbitration case settles for $400,000

Anapol, Schwartz attys Joel Feldman and Adam Green settled an NASD arbitration case for $400,000 for the estate of a 75 year old woman with losses in her account through inaction and negligence of her stockbroker. The portfolio was not suitable for a widowed, retired woman needing income for living expenses . Feldman and Green established that the widow was very conservative while the investments were aggressive. Family members and friends were prepared to testify that the widow refused to accept any debt or risk . On cross-examination the stockbroker admitted he never analyzed the risk in the account, failed to employ industry accepted practices in recommending investments to his clients, repeatedly recommending risky stocks in the technology and pharmaceuticals sectors so at times more that 90% of her holdings were concentrated in those areas. Further the broker used margin debt to purchase small cap stocks that generated excessive fees and commissions with large monthly interest charges accruing each month. The settlement was reached after the stockbroker was cross-examined for the better part of 2 days.