Award FINRA Dispute Resolution

Transcription

1 Award FINRA Dispute Resolution In the Matter of the Arbitration Between: Claimants Estate of Stanley Stein Laura Weiss Trust Tracy Stein IRA Tracy Stein, PACE Trust u/w Bonnie R. Stein Case Number: vs. Respondent UBS Financial Services Inc. Hearing Site: New York, New York Nature of the Dispute: Customers vs. Member This case was decided by an all-public panel. REPRESENTATION OF PARTIES For Claimants Estate of Stanley Stein, Laura Weiss Trust, Tracy Stein IRA, Tracy Stein, PACE, and Trust u/w Bonnie R. Stein: Michael Hill, Esq., Menzer & Hill, P.A., Boca Raton, Florida. For Respondent UBS Financial Services Inc.: Sean J. Coughlin, Esq., Brassier, Amery & Ross. P.C., New York, New York. CASE INFORMATION Statement of Claim filed on or about: February 12, Estate of Stanley Stein signed the Submission Agreement: February 25, Laura Weiss Trust signed the Submission Agreement: February 25, Tracy Stein IRA signed the Submission Agreement: February 25, Tracy Stein, PACE signed the Submission Agreement: February 25, Trust u/w Bonnie R. Stein signed the Submission Agreement: February 25, Statement of Answer filed by Respondent on or about: June 27, Respondent signed the Submission Agreement: June 26, CASE SUMMARY Claimants asserted the following causes of action: negligent supervision, negligence, breach of contract, breach of fiduciary duty, misrepresentations, and omissions. The causes of action relate to unspecified securities.

2 Award Page 2 of 5 Unless specifically admitted in its Answer, Respondent denied the allegations made in the Statement of Claim and asserted various affinnative defenses. RELIEF REQUESTED In the Statement of Claim, Claimants requested unspecified compensatory damages plus interest, statutory damages, recessionary damages, lost opportunity damages, punitive damages, attorneys' fees, costs, sanctions, and other remedies as deemed proper and appropriate. At the close of the hearing. Claimants withdrew the request for attorneys' fees. Respondent requested that Claimants' claim be dismissed, expungement of this matter from the CRD record of unnamed party Paul Wexler, costs, and such other and further relief as deemed just and proper. OTHER ISSUES CONSIDERED AND DECIDED The Arbitrators acknowledge that they have each read the pleadings and other materials filed by the parties. At the conclusion of Claimants' case-in-chief. Respondent made a Motion for Directed Verdict. Claimants opposed the Motion. After due deliberation, the Panel denied the Motion. The Panel reviewed the BrokerCheck Report for unnamed party Paul Wexler. In recommending expungement, the Panel relied upon the following documentary and other evidence: monthly statements provided to Claimants, expert testimony, Paul Wexler's notes and testimony, and documents entered into evidence at the hearing. The parties have agreed that the Award in this matter may be executed in counterpart copies or that a handwritten, signed Award may be entered. AWARD After considering the pleadings, the testimony and evidence presented at the recorded hearing, the Panel has decided in full and final resolution of the issues submitted for determination as follows: 1. Claimant's claim is denied in its entirety. 2. The Panel recommends the expungement of all references to the above-captioned arbitration from unnamed party Paul Wexler's (CRD # ) registration records maintained by the Central Registration Depository ("CRD"), with the understanding that, pursuant to Notice to Members 04-16, unnamed party Paul Wexler must obtain confirmation from a court of competent jurisdiction before the CRD will execute the expungement directive.

3 Award Page 3 of 5 Unless specifically waived in writing by FINRA, parties seeking judicial confirmation of an arbitration award containing expungement relief must name FINRA as an additional party and serve FINRA with all appropriate documents. Pursuant to Rule of the Code, the arbitration Panel has made the following Rule 2080 affirmative finding of fact: The claim, allegation, or information is false. The arbitration Panel has made the above Rule 2080 finding based on the following reasons: Based upon the testimony and documents entered into the record, the investment recommendations by Paul Wexler were not unsuitable. Claimants' accounts during the time period were divided with approximately 60% equities and 40% bonds. A margin was paid off and the account made a profit despite having deductions from principal for repayment of margin and estate taxes. Mr. Wexler provided balance sheets, met with Tracy Stein and explained the investments in Claimants' portfolio. 3. Any and all relief not specifically addressed herein, including punitive damages and sanctions, is denied. FEES Pursuant to the Code, the following fees are assessed: Filing Fees FINRA Dispute Resolution assessed a filing fee* for each claim: Initial Claim Filing Fee =$ 1, *The filing fee is made up of a non-refundable and a refundable portion. Member Fees Member fees are assessed to each member firm that is a party in these proceedings or to the member firm that employed the associated person at the time of the events giving rise to the dispute. Accordingly, as a party, UBS Financial Services Inc. is assessed the following: Member Surcharge =$ 1, Pre-Hearing Processing Fee =$ Hearing Processing Fee =$ 2,200.00

4 Award Page 4 of 5 Hearing Session Fees and Assessments The Panel has assessed hearing session fees for each session conducted. A session is any meeting between the parties and the arbitrators, including a pre-hearing conference with the arbitrators, that lasts four (4) hours or less. Fees associated with these proceedings are: One (1) Pre-hearing session with a single $ =$ Pre-hearing conference: April 27, session One (1) Pre-hearing session with the $1, = $1, Pre-hearing conference: September 9, session Four (4) Hearing $1, = $4, Hearing Dates: November 16, sessions November sessions Total Hearing Session Fees = $5, The Panel has assessed $2, of the hearing session fees to Claimants. 2. The Panel has assessed $2, of the hearing session fees to Respondent. All balances are payable to FINRA Dispute Resolution and are due upon receipt.

5 Award Page 5 of 5 ARBITRATION PANEL Lawrence H. Telch, Presiding Chairperson I, the undersigned Arbitrator, do hereby affirm, pursuant to Article 7507 of the Civil Practice Law and Rules, that I am the Individual described herein and who executed this instrument which is my award. Concurring Arbitrators' Signatures Linda J. Beer, PreslQtfig Chairperson December 11, 2015 Date of Service (For FINRA Dispute Resolution office use only)

6 Arbitr^ition No Award Page 5 of 5 ARBITRATION PANEL Linda J, Baer, Presiding Chairperson I, the undersigned Arbitrator, do hereby affirm, pursuant to Article 7507 of the Civil Practice Law and Rules, that I am the individual described herein and who executed this instrument which is my award. Concurring Arbitrators' Signatures, Presiding Chairperson /3 December 11, 2015 Date of Service (For FINRA Dispute Resolution office use only)

7 FINRA Dispute l^esolutton ArbHration No Award Page 5 of 5 ARBITI PANEL, Presiding Chafrperson Public Arbih-ator \, the undersigned Arbitrator, do hereby affimi, pursuant to Article 7507 of the Civil Practice Law and Rules, that I am the individual described herein and who executed this instrument which is my award. Concurring Arbitrators' Signatures, Presiding Chairperson fence H. Teich SignSureOate December 11, 2015 Date of Service (For FINRA Dispute Resolution office use only)