Broker-Dealer Found Grossly Negligent for Employees’ Ponzi Scheme Operated Out of Its Offices

Marshall Dennehey
Contact

A group of investors alleged causes of action, including breach of fiduciary duty and respondeat superior, against the broker-dealer for its failure to supervise four of its employees who operated a Ponzi scheme out of the broker-dealer’s office in Atlanta, Georgia. The panel found the respondent grossly negligent and awarded the claimants approximately $14 million in damages, including $6.9 million in punitive damages. The claimants also successfully petitioned a court of competent jurisdiction for attorney fees and costs.

Written by:

Marshall Dennehey
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Marshall Dennehey on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide