Broker-Dealer Waveland Capital Partners, LLC finally pay $361,820 arbitration award

Randall A. Tommerup and Helen E. Tommerup of Dillon, Montana, were childhood sweethearts, marrying in 1969, shortly after finishing high school, and farming a small piece of property that they purchased from Mrs. Tommerup's father. The Tommerups were inseperable, working together from dawn to dusk.

The Tommerups decided to sell the family ranch in 2005. Melvin T. Day II ("Day"), a financial advisor with Waveland Capital Partners, LLC ("Waveland Capital"), recommended that they invest $150,000 in DBSI-Executive Park LLC in January 2005 and $260,000 in DBSI Arrowhead, LLC in September 2005. These investments were part of a Ponzi scheme and the Tommerups lost most of their life savings.

The Tommerups filed an arbitration claim against Waveland Capital and Day in October 2010. In January 2012, Montana Federal Judge Donald W. Molley rejected a challenge by Waveland Capital and Day to the jurisdiction of the arbitration panel. After hearing a week of testimony, a Helena, Montana, arbitration panel issued an arbitration award in February 2012 in favor of the Tommerups. The panel found that these investments were unsuitable for the Tommerups, that Waveland Capital "failed to supervise" Day, and awarded the Tommerups $328,875.00. This award included $25,000 in discovery sanctions against Waveland Capital.

Waveland Capital appealed the award. On March 11, 2013, the arbitration award was affirmed by another Montana Federal Judge. Waveland still dragged its feet and neglected to pay the award. FINRA then informed Waveland that it would suspend the firm by April 17, 2013, unless the award was paid. Waveland finally paid the award in full on April 1, 2013.

Kalju Nekvasil, Esq. of Goodman & Nekvasil, P.A., the Tommerups' Clearwater, Florida, attorney, observed that "it is outrageous that this brokerage firm subjected this retired couple to repeated court challenges and years of litigation before finally making them whole for its negligence."

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