Littleton Retiree Awarded $600,000 From Local Brokerage Firm
Reporter- Denver Business Journal
Oct 14, 2015, 4:03pm MDT
A 79-year old Littleton man who said he lost most of his life savings when he trusted Presidential Brokerage Inc. was awarded more than half a million dollars by a Colorado arbitration panel.
Carl Jensen took his case to a Denver Financial Industry Regulatory Authority (FINRA) arbitration panel against Presidential Brokerage, Inc. His attorney, Kalju Nekvasil from the Florida-based firm Goodman & Nekvasil, said the hearing was held in September and the award of $653,795 was announced this week.
Jensen said he had been victimized by the Greenwood Village-based Presidential Brokerage Inc., a broker-dealer and registered investment adviser. He said that in June 2008, his PBI investment adviser, Jason S. McBride, recommended that he invest $475,000 in Washington Park Office Center in Dayton Ohio.
The adviser split a $33,032 commission with PBI. But the investment ultimately went into foreclosure, and Jensen lost a significant portion of his retirement savings.
The FINRA arbitration panel agreed with the retiree's claim that he had been victimized by PBI and wrote that the "respondent is liable for and shall pay the claimant the amount of $653,795.79 in compensatory damages," according to the FINRA resolution documents.
According to Nekvasil, PBI did not conduct independent due diligence on this investment; PBI did not have any procedures covering the marketing of this investment; and the firm allowed the adviser to offer this investment to the claimant before it was approved by the firm and before a selling agreement was executed.
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