Meyer Wilson Clients Awarded Full Recovery at FINRA Arbitration
A Cleveland-based FINRA arbitration panel unanimously decided to award two Meyer Wilson clients a full recovery for Ponzi scheme losses.
COLUMBUS, Ohio, Sept. 18, 2015 /PRNewswire/ -- A Cleveland-based FINRA arbitration panel unanimously ordered Primesolutions Securities, Inc. and owner/president Victor L. Bull to pay damages amounting to more than $100,000 to two Meyer Wilson clients (FINRA Case ID 14-01186: Charles David Winter and Jennifer Winter vs. Primesolutions Securities, Inc. and Victor Lawrence Bull).
According to the investors, their broker Jerry Cicolani, with Primesolutions Securities at the time, recommended they invest in KGTA Petroleum (KGTA). Meyer Wilson alleged that Cicolani did so without disclosing or getting approval from his managing firm.
According to the U.S. Securities and Exchange Commission, KGTA is a "sham oil trading business" and solicited investments by claiming that the company earned money through the purchasing and reselling of both crude and refined fuel (Release No. 23097).
At the evidentiary hearing, Primesolutions argued that it had adequate supervisory systems in place, but the FINRA arbitration panel's decision supported Meyer Wilson's claim that both Primesolutions and its owner Mr. Bull had a duty to implement a supervisory system that would both detect and prevent misconduct, which did not happen in Cicolani's case.
Attorney Chad Kohler, one of the Meyer Wilson attorneys who represented the investors at this arbitration hearing, commented, "Through the testimony of our expert, we established that the standard of care in the industry is that firms must follow up and do reasonable investigation of all red flags."
Meyer Wilson believes that arbitration decisions such as this one send a clear message to officers and directors of brokerage firms in particular, that they too can be held liable for the failures of their brokerage firms under the Ohio Securities Act.
Attorney Courtney Werning, also with Meyer Wilson and represented the investors at this hearing, noted, "This is an important win for investors in Ohio and across the country."
Meyer Wilson represents individual and institutional investors throughout the United States who have been victimized by the negligence, fraud, and misconduct of their advisors and brokerage firms. If you have question about this case or any investment loss-related issue, visit http://www.investorclaims.com/ for more information.
SOURCE Meyer Wilson
Share this article