Client: Engineer
Amount Lost: $155,000
Commissions Charged: $103,000
Cold Spring has been retained by a plumbing engineer in Great Britain seeking $155,000 against two New York-based broker-dealers that traded him on margin despite his limited investment experience. His brokers excessively traded his account to generate commissions and consistently employed high-pressure sales tactics to persuade him to deposit more money in his accounts.
Client: Administrative Manager
Amount Lost: $28,000
Broker Abuse: Suitability
Cold Spring has been retained by a 55-year-old administrative manager in Grantham, Pennsylvania seeking $28,000 in damages against a Woodbury, New York-based broker-dealer that made unsuitable recommendations. Her broker traded her in options and other speculative positions despite the fact that she is not experienced in options and explicitly requested to only trade stocks. Her broker also executed a number of traders without her authorization.
Client: Retired
Amount Lost: $212,000
Broker Abuse: Suitability
Cold Spring has been retained by a 61-year-old retiree in Rock Hill, South Carolina seeking $212,000 in damages against two different broker-dealers based in New York and Florida, respectively. His brokers excessively traded his account to generate commissions and made unsuitable investment recommendations that put his client at extreme financial risk.
Client: Farmer
Amount Lost: $150,000
Commissions Charged: $50.200
Cold Spring has been retained by a farmer in Adams, Minnesota seeking $150,000 in damages against a Woodstock, Georgia broker-dealer that excessively traded his account to generate commissions. His broker made unsuitable investment recommendations and traded him on margin despite the client's lack of investment experience. The broker also employed high-pressure sales tactics to persuade the client to continue to put money in the account.
Client: Optometrist
Amount Lost: $46,575
Commissions Charged: $117,000
Cold Spring has been retained by a 47-year-old optometrist in Fayetteville, North Carolina seeking $46,575 in damages against a Woodstock, Georgia-based broker-dealer that excessively traded his account solely to generate commissions. The client, who explicitly requested a conservative investment strategy, was traded in highly speculative and risky positions. His broker misled the client regarding the status on the account and repeatedly ignored the client’s request to stop the losses.
Client: Car Wash Owner
Amount Lost: $50,000
Broker Abuse: Suitability
Cold Spring has been retained by a 66-year-old car wash owner in Conover, North Carolina seeking $50,000 in damages against a Hoboken, New Jersey-based broker-dealer. His broker traded him in highly speculative and risky positions and used principal riskless markups and markdowns to disguise the true amount of commissions that were generated.
Client: Small Crop Farmer
Amount Lost: $640,000
Commissions Charged: $500,000
Cold Spring has been retained by a small crop farmer in Akron, Iowa seeking $640,000 in damages against a Syosset, Long Island-based broker dealer that excessively churned his account.His broker employed principal riskless markups and markdowns to amass commissions in excess of half a million dollars, despite the fact that the client had no clue what markups/markdowns even were.
Client: Business Owner
Amount Lost: $25,000
Broker Abuse: Suitability
Cold Spring has been retained by the owner of a medical supply company in Paducah, Kentucky seeking $25,000 in damages against a Woodstock, Georgia-based broker-dealer that made unsuitable recommendations. His broker had him invested in highly speculative positions despite his limited risk tolerance and traded his account to generate commissions. The client was traded on margin and lost his entire investment satisfying margin calls.
