A three-member panel of Financial Industry Regulatory Authority (“FINRA”) arbitrators has rendered a $1,475,000 arbitration Award against ThinkEquity Partners, LLC. The Award was related to investments in auction rate securities.
According to the Award, the claimant, Brigette Roberts, M.D. alleged that ThinkEquity and broker Pascal Besman made fraudulent and/or or negligent misrepresentations concerning auction rate securities, recommended unsuitable investments, breached their fiduciary duties, and failed to supervise. Dr. Roberts sought rescission or, in the alternative, compensatory damages of $4,750,000, punitive damages, costs and attorneys’ fees.
After six days of hearings, the arbitrators issued an Award granting Dr. Robert’s request for rescission and awarding monetary damages of $1,475,000. The arbitrators denied the remainder of Dr. Robert’s requests. As is typical with FINRA Awards, no rationale or basis was given for the decision.