FINRA Panel Rules Against Wells Fargo / Wachovia -- but was it a victory or loss?

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Jul 28, 2010 8:13 am

FINRA Panel Rules Against Wells Fargo / Wachovia -- but was it a victory or loss?

http://www.brokeandbroker.com/index.php?a=blog&id=499

In a Statement of Claim filed June 9, 2009, Alexander Moskvin and Claire Moskvin (the "Moskvins" or "Claimants") alleged that Respondent Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC,  engaged in fraud, omissions and misstatements, common law fraud, fraudulent inducement, unsuitable investments, breach of fiduciary duty, negligence, failure to supervise, breach of contract, breach of the covenants of good faith and fair dealing, respondeat superior, and violations of New York Business Law Article 22-A. Frankly, a fairly comprehensive list of alleged no-no's.  Unfortunately, while the legal allegations are presented to us with exacting detail, the FINRA decision doesn't exactly provide us with more meaningful explanations beyond the legalese. In the Matter of the Arbitration Between Alexcander Moskvin and Claire Moskvin, Claimants, vs. Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC, Respondent (FINRA Arbitration 09=03489, July 12, 2010).

About the only substantive explanation of the underlying claims set forth in the decison is that they "relate to unspecified equity and mutual fund investments."  Umm . . . okay . . . like that's a big help.  Unspecified investments. Gee, thanks for narrowing the case down for us.

And just what damages did the Moskvins seek for their unspecified investments?  Well, the Claimants sought $226,865.86 in compensatory damages plus 4% interest from May 8, 2008 until payment, punitive damages, costs, and attorneys' fees.

Question: How come the Panel awarded only $90,000 to Claimants?

Question: What did the New Account Form (prepared in advance by the Respondent) have to do with the award?

READ BILL SINGER'S COMPREHENSIVE ANALYSIS OF THIS CASE AT:

http://www.brokeandbroker.com/index.php?a=blog&id=499