A three-member Financial Industry Regulatory Authority (“FINRA”) arbitration panel has issued a $1.6 million Award in favor of customer, John Sisk, against JHS Capital Advisors, Inc., Pointe Capital, Inc. and broker Enver R. Alijaj. The Award stems from a FINRA claim filed by Sisk in New York in February 2011.
Sisk alleged that his broker, Alijaj, excessively traded his account to generate commissions. According to Sisk, during the period from July 2009 to April 2010, the alleged churning of the account was so excessive, Sisk would have had to generate returns of 160% in order to break even.
As is typical with FINRA Awards, the arbitrators provided no rationale for their decision. They ordered JHS Capital Advisors, Inc., its predecessor Pointe Capital, Inc. and the broker Alijaj, jointly and severally, to pay $1,500,000 in compensatory damages, $100,000 in punitive damages and $93,204 in attorney’s fees. The customer had requested more than $3 million in actual damages.
The Florida securities lawyers at McCabe Rabin, P.A. represent investors nationwide in FINRA arbitration matters. Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.