Retiree Recovers Six-Figure Investment Losses From Wall Street Firm

PITTSFIELD, Mass., Jan. 18, 2011 /PRNewswire/ -- A retired woman won a six-figure damages award against Smith Barney to compensate her for investment losses caused by the Wall Street firm. Joanne Bohnke invested her retirement savings with Smith Barney's Whittier, California branch. Her account representative was Vincent Daigneault.

On November 18, 2010, a Financial Industry Regulatory Authority (FINRA) arbitration panel ruled in favor of Bohnke and awarded her $136,000, following a three-day arbitration. The FINRA panel determined that Daigneault's recommendation to purchase General Motors (GM) stock was not suitable. The arbitration panel also directed Smith Barney (now known as Morgan Stanley Smith Barney) to pay Ms. Bohnke's attorney's fees.

Bohnke invested her retirement savings with Smith Barney in 2005. In 2007, Daigneault recommended she buy General Motors (GM) preferred stock. The GM stock represented a significant portion of her total portfolio. The price of the GM stock subsequently plummeted and GM eventually filed for bankruptcy protection. Bohnke lost 76% of her investment in GM. Bohnke, Daigneault and George Yackey, the Manager of the Whittier branch office, all testified at the hearing.

David Valicenti, the lawyer who represented Bohnke stated, "We are very pleased that the panel fully compensated Ms. Bohnke. This was a clear case of over-concentration and failure to properly diversify a portfolio."

David Valicenti is a partner at Cohen Kinne Valicenti & Cook LLP, a Massachusetts-based law firm. Cohen Kinne has significant experience pursuing securities claims on behalf of investors and represents clients throughout the United States.

SOURCE Cohen Kinne Valicenti & Cook LLP