FINRA Arbitration for CMO Losses Filed against Penson Financial Services, Inc. and Samco Financial Services, Inc.
Boca Raton, FL (PRWEB) August 28, 2007 -- The Securities Law Firms of Dickenson Murphy Rex & Sloan and The Law Offices of Gregory Tendrich, P.A., announce the filing of an arbitration before the Financial Industry Regulatory Authority (?FINRA?), Case No. 07-2269, on behalf of over 80 individuals seeking damages which exceed $15 million, resulting from investments in Collateralized Mortgage Obligations (?CMO?s?) which were allegedly purchased utilizing extraordinarily high margin balances. During 2006, the accounts of these clients were liquidated, in many cases without authority and at prices not reflective of fair market value.
One member of the group is a couple who are both in their eighties who lost their life savings of over one million dollars. Half of the group of individuals is over 60 years of age and six are in their eighties. Many within the group are retired and the damage to their retirement nest egg is devastating.
According to The Office of Financial Regulation for the Financial Services Commission of the State of Florida, the Samco Financial Services, Inc. Boca Raton, FL, office where the accounts were handled was not registered to conduct securities business in Florida until February 24, 2006. The office actually opened in the summer of 2004 and most of the trading complained of in the suit took place during the time period while the Samco office was not registered in Florida to conduct securities business.
The claim seeks punitive and compensatory damages as well as rescission under Florida?s Investor Protection Statute (Fla. Stat. 517) from Penson Financial Services, Inc., now known as Penson Worldwide and their related company, officers and employees, including:
? Samco Financial Services, Inc.
? Roger J. Engemoen, Chairman of Penson
? William D. Gross, Samco control person
? Phillip A. Pendergraft, CEO of Penson
? Daniel P. Son, President of Penson
? Albert Yee, Samco control person
? Stanley J. Allen, Jr., former Chief Compliance officer of Samco
According to the attorneys for the Claimants, Robert Rex and Gregory Tendrich, the claims raised in this action include:
? Penson and the other defendants breached their fiduciary duties to customers by failing to act in good faith and within the securities industry?s ?just and equitable principles of trade;?
? Penson and the other defendants negligently failed to supervise the operations of the Boca Raton Samco Financial office;
? Penson and the other defendants liquidated the subject CMO accounts at prices that were not consistent with and significantly below fair market value;
? Penson and the other defendants operated the Boca Raton Samco Financial office for nearly two years in an unlicensed capacity in violation of Florida Statute 517.12 that requires that branch offices to be registered with the Florida Office of Financial Regulation
The law offices of Dickenson Murphy Rex & Sloan are located at 980 N Federal Highway, Boca Raton, FL, 33432. Phone: 561-391-1900. Mr. Rex has concentrated his practice on the representation of investors seeking recovery of investment losses for more than 15 years. www.securitiesalert.com
Gregory Tendrich, 4651 N Federal Hwy, Boca Raton, FL. Phone 561-417-8777, has spent the last fifteen years concentrating his practice on securities regulation, litigation and arbitration. Mr. Tendrich is a Florida Supreme Court Certified County Court mediator and a certified arbitrator with Financial Industry Regulatory Authority (?FINRA?). www.yourstocklawyer.com
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