Singer Deutsch LLP Victory Upheld In Case Involving Client Brokerage Account Mishandled and Improperly Invested

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New York Supreme Court confirms New York City FINRA Arbitration Panel award to client for substantial compensatory and punitive damages against Southridge Investment Group.

...securities firms cannot willfully or negligently abdicate their supervisory responsibilities over their employees.

Singer Deutsch LLP, a national securities and employment law firm with offices in New York City, Los Angeles, and San Francisco, announced today that the New York Supreme Court has confirmed a New York City Financial Industry Regulatory Authority (FINRA) Arbitration Panel award to its client. The 2012 award included substantial compensatory and punitive damages in a case involving a client whose brokerage account was mishandled and improperly invested by his financial advisor.

The arbitration award (FINRA Case No. 09-06667) rendered against FINRA Member Firm Southridge Investment Group and certain of its principals is just the latest in a long line of cases that Singer Deutsch LLP has successfully brought on behalf of investors whose accounts have been mishandled by their financial and investment advisors.

On April 4, 2012, a New York City FINRA Arbitration Panel comprised of three arbitrators awarded a claimant represented by Singer Deutsch $259,087.97 in compensatory damages, as well as $520,766.82 in punitive damages.

On May 4, 2012, the respondents filed individual motions to vacate the arbitration award. The motions were each denied in their entirety by the New York Supreme Court on March 20, 2013 and April 24, 2013, respectively, with the arbitration award instead confirmed.

The claimant's claims emanated from investment losses sustained over a short period of time. The claimants alleged churning, over-concentration, negligence and a failure to supervise. The compensatory damages portion of the arbitration award represented a 92% recovery of the claimant's net out-of-pocket investment losses.

The claimants were represented by Michael C. Deutsch and John D. Singer of Singer Deutsch LLP. The respondents were represented by Gersten Savage LLP.

"Once again, a FINRA Arbitration Panel has determined that securities firms cannot willfully or negligently abdicate their supervisory responsibilities over their employees," said Michael Deutsch. "This case demonstrates that FINRA Arbitration Panels will not allow securities firms to ignore a customer's clearly articulated investment objectives or to engage in activities that violate securities regulations."

Singer Deutsch LLP has recovered tens of millions of dollars for its "customer/investor" clients via settlements or FINRA arbitration awards.

Founded in 2003 by Georgetown Law School alumni John D. Singer, Esq. and Michael C. Deutsch, Esq., Singer Deutsch handles diverse, complex matters for individual investors against investment banks, brokerage firms, hedge funds, financial planners and investment advisors emanating from investment-related losses. These matters typically involve unsuitable investing, breaches of fiduciary duties, negligence, churning, material misrepresentations, unauthorized trading, material omissions, failures to supervise, blue-sky violations, and fraud.    

In addition, the firm also represents securities industry employees such as Wall Street traders, brokers, investment bankers, financial planners, wholesalers, compliance personnel, operations personnel, hedge fund executives, private equity fund executives, hedge fund marketers, and research analysts in both arbitrations and litigations against their former employers wherein the claims typically involve bonus disputes, wrongful terminations, U-5 defamation, failures to pay compensation (oftentimes involving stock options), whistle-blowing, gender discrimination, race discrimination, age discrimination, disability discrimination, harassment, and slander. The firm also represents individuals who are the subject of investigations or enforcement proceedings conducted by the Securities and Commodities regulators, wherein the issues range from market-timing, late-day trading, front-running and unauthorized, outside business activities to sales-practices issues (unsuitability and churning), forgery, and insider trading. For more information about the firm, visit or contact Michael Deutsch at (212) 682-3939. Michael C. Deutsch Singer Deutsch LLP, 555 Fifth Avenue, 17th Floor New York, NY 10017 T: 212.682.3939 F: 212.682.2006

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