Stock Broker Held Accountable for Sister's Investment Losses

2010/02/16

FORT LAUDERDALE, Fla.,  -- A former school teacher and her husband, who were victimized by her stockbroker brother, have been awarded full recovery of all losses plus interest, attorney fees, forum fees and costs by a FINRA arbitration panel.

Read coverage on this story at Investment News magazine 

The arbitration Award follows a claim filed by the law firm of securities fraud attorney Mark A. Tepper.

The couple suffered a nearly 80 percent investment loss, during a 3-4 month period, while their portfolio was under management of the claimant's brother, broker Kenneth Popek and Tampa based brokerage firm Calton & Associates, Inc.

The panel also awarded punitive damages against the brokerage firm. "Calton's failure to detect Respondent Popek's wrongful conduct and failure to supervise the investments in Claimants' accounts rose to the level of gross negligence pursuant to Florida Statute 768.72," the arbitration panel noted.

"Brokerage firms are the last line of defense against stock broker misconduct and when that protection fails, investors can be the victimized. We're very pleased with the finding by FINRA's arbitration panel in favor of our clients," Tepper said.

The Panel also denied Popek's request for expungement of the matter from his records.

"Investors who believe they've been defrauded should investigate their legal rights to determine the merits of potential claims," Tepper added.

FINRA arbitrators last year upheld claims filed by the Mark Tepper law firm against a number of large financial services companies, recovering investor losses from Merrill Lynch for high risk investments in Fannie Mae Preferred Stock, and against AmTrust.

About Mark A. Tepper, P.A. (www.MarkTepper.com)

A former Chief Trial Counsel at the Bureau of Investor Protection and Securities, Attorney Mark Tepper has earned the reputation of "Investor Advocate" while practicing law for over 30 years and representing the small investor. A member of the Florida, New York and California Bars, Mr. Tepper is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory. As a member of the Speaker's Bureau of the Florida Bar, he addresses professional associations, local clubs and financial organizations in a continuing effort to educate the public on securities fraud.
 

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