FINRA Arbitrators Hit Losing Customers With Five-Figure Sanctions

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Jul 14, 2010 9:30 am

FINRA Arbitration Panel Hits Losing Customer Claimants With Sanctions

In a FINRA Arbitration Statement of Claim filed in March 2009, Claimants Kenneth J. and Penelope Iwanicki alleged that Respondents Richard and Robert Lewin (the "Lewins") made misrepresentations and purposeful omissions of material facts concerning high risk stocks in Claimants’ accounts at Respondent Basic Investors, Inc.  Claimants alleged that the Respondents Lewins enaged in hundreds of unauthorized tranasactions for the sole purpose of generating commissions and advised Claimants to purchase unsuitable securities given their stated risk tolerance and financial goals.  Further, Claimants alleged that Respondent Penson served as Respondent Basic’s clearing house and, as such, had an oversight responsibility for all the cited trading.   Claimants sougth $1,300,000 in compensatory damages; $4,000,000 in punitive damages, $3,900,000 in treble damages, $750,000 in other relief, and unspecified attorneys’ fee, costs, etc. In the Matter of the Arbitration Between Kenneth J. Iwanicki and Penelope Iwanicki, Claimants, versus Richard Lewin, Robert Lewin, Basic Investors, Inc., and Penson Financial Services, Inc., Respondents. (FINRA Arbitration 09-01494, June 29, 2010)

READ BILL SINGER'S COMPREHENSIVE ANALYSIS OF THIS CASE AND LEARN WHY THE FINRA ARBITRATORS IMPOSED A FIVE-DIGIT SANCTION ON THE LOSING PUBLIC CUSTOMERS:

http://www.brokeandbroker.com/index.php?a=blog&id=482

Jul 14, 2010 1:19 pm

Maybe I missed something, but at the link, I don't see any of your "comprehensive analysis" of why the claimant was denied, and had to pay hearing costs.