Recent Cases | Page 11 | Cold Spring Advisory Group

Recent Cases

Client: Used Car Dealer

Amount Lost: $152,000

Commissions Charged: $100,000+

Cold Spring has been retained by the owner of a used car and truck dealership in Tallahassee, Florida who is seeking damages of approximately $152,000 against a broker-dealer in New York City. Cold Spring's analysis found that over the course of 1 year, the client was charged over $100,000 in commissions and was excessively traded on margin such that his broker bought $1.2 million of equities and sold $1.3 million of equities within 1 month.

Client: Retired Judge

Amount Lost: $105,000+

Commissions Charged: $33,000+

Cold Spring has been retained by an 80-year-old retired judge living in Maryland, who is seeking damages against a New York City broker-dealer. Cold Spring's analysis found evidence of excessive trading (churning for commissions) and suitability abuse that resulted in over $105,000 of lost capital and commission charges in excess of $33,000. Although this client had no prior experience in the stock market, he was put primarily into highly speculative and extremely sophisticated ETFs.

Client: Software Developer

Amount Lost: $535,000

Commissions Charged: $200,000+

Cold Spring has been retained by a 51-year-old software developer living in Palo Alto, CA who is seeking $535,000 in damages against a Seattle, Washington broker-dealer for churning for commissions, unsuitability and excessive use of margin. Cold Spring's analysis found this client was charged over $200,000 in commissions over a two-year period.

Client: Seafood Dealer

Amount Lost: $33,000

Commissions Charged: $33,000+

Cold Spring has been retained by a 65-year-old seafood dealer in Ocean Springs, Mississippi, who is seeking damages from a New York City broker-dealer. Cold Spring’s analysis revealed the broker charged him $33,000 in commissions and he lost $33,000 of his invested capital. Despite his explicit instructions to adhere to a conservative investment strategy, he was excessively traded (churned), extensively traded on full margin and charged high commissions camouflaged in markups and markdowns.

Client: Property Asset Mgr.

Amount Lost: $130,000

Commissions Charged: $80,000+

Cold Spring has been retained by a 63-year-old property asset manager in Virginia who is seeking damages against a Woodstock, GA broker-dealer for excessive trading (churning for commissions) that resulted in a $130,000 investment loss. Cold Spring's analysis found this client paid approximately $80,000 in commissions and his broker purchased $497,000 of equities and sold $575,000 of equities over the course of 15 months.

Client: Construction Worker

Amount Lost: $99,875

Commissions Charged: $71,000+

Cold Spring has been retained by a 52-year-old construction company owner living in el Cajon, CA. Our client is seeking $99,875 in damages against a Long Island, NY broker-dealer for charging excessive commissions (churning), excessive use of margin and failure to abide by FINRA suitability rules. This investor's broker told him he was not charging any commissions, yet Cold Spring's analysis found that markups and markdowns camouflaged the actual $72,157 in commissions he was charged over 14 months. Our client had no prior trading experience, but was put into options that at one point reached $83,000.

Client: Retired Dairy Farmer

Amount Lost: $550,000

Commissions Charged: $540,000+

Cold Spring has been retained by an 82-year-old retired dairy farmer in Michigan who is seeking $550,000 in damages against a New York City broker-dealer. Cold Spring's analysis found that this client was charged approximately $540,000 in commissions over the course of 11 months. Markups and markdowns disguised excessive commissions that, in one instance totaled $46,000 to execute only three trades.

Client: Building Contractor

Amount Lost: $20,000

Commissions Charged: $70,000+

Cold Spring has been retained by a 67-year-old building contractor from Edgecomb, ME, who is seeking damages against a Long Island, NY broker-dealer for unauthorized trading and excessive trading (churning). Cold Spring's analysis found he lost over $20,000 and was charged approximately $70,000 in commissions and fees. In the single month he had the account, the broker bought $1.9 million and sold $1.7 million in equities. This client's only prior stock market experience was with mutual funds in an IRA account. The broker liquidated the two blue chip stocks and all of the conservative positions the client transferred from the IRA into the new account.

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