Daniel R. Solin Announces: Couple Wins 500K in Suit against Merrill Lynch.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--March 18, 2004 Merrill Lynch's Advice Deemed "Unsuitable and Inappropriate" by Tribunal in NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). Award No. 03-01274 An elderly couple from Uruguay who lost their life savings in investments recommended by the Montevideo, Uruguay office of Merrill Lynch was awarded over $500,000 in damages and interest by an NASD arbitration panel arbitration panel A group of individuals charged with resolving a dispute between individuals and/or organizations. Arbitration panels to resolve investment disputes are sponsored by self-regulatory organizations such as NASD. on March 18, 2004. In its Award, the panel awarded Jorge and Ana Karpati, residents of Montevido, Uruguay, $250,836 plus interest as compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. and an additional $250,000 in punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. . The panel noted in its Award (Jorge Karpati and Ana Maria Davies v. Merrill Lynch Pierce Fenner & Smith, Inc., a/k/a Merrill Lynch Montevideo, S.A.) that the punitive damages were justified by the failure of Merrill Lynch to supervise the handling of retirement funds which were invested in "...a non diversified, high risk portfolio of technology and telecommunications stocks, leveraged by margin and inconsistent with Claimants' stated conservative objectives." "This Award will send a clear message to the brokerage industry that it is no longer acceptable to provide investment advice that ignores the investment objectives and risk tolerance Risk Tolerance The degree of uncertainty that an investor can handle in regards to a negative change in the value of their portfolio. Notes: An investor's risk tolerance varies according to age, income requirements, financial goals, etc. of their clients. It is also significant that this Tribunal afforded the same protection to foreign investors that it gives to Americans," said Daniel R. Solin of New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , counsel for the Karpatis and author of Does Your Broker Owe You Money? (Silvercloud, 2004). |
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