Client: Dentist
Amount Lost: $138,000
Commissions Charged: $101,000
Cold Spring has been retained by a 67-year-old dentist in Taylorville, Illinois seeking $138,000 in damages against three different New York-based broker-dealers that excessively traded his account to generate commissions. His broker made unsuitable investment recommendations despite the client’s limited experience and invested him in highly speculative positions despite his request for investments that yield long-term growth.
Client: Livestock Farmer
Amount Lost: $1.1 million
Commissions Charged: $550,000
Cold Spring has been retained by a livestock farmer in Ord, Nebraska seeking $1.1 million in damages against a Uniondale, New York-based broker dealer that allowed excessive and objectionable commissions to be generated. His account was over-concentrated in highly speculative positions and he lost his entire investment within a year and a half.
Client: Farmer
Amount Lost: $19,000
Broker Abuse: Suitability
Cold Spring has been retained by a 56 year-old farmer in Denton, Kansas seeking $19,000 in losses against a Fayetteville, North Carolina-based broker dealer that made unsuitable investment recommendations. His broker traded his account solely to generate commissions and over-concentrated his account in highly speculative positions. The cost maintenance to equity ratio for the account was 60.44%, meaning the client would need returns of 60.44% just to break even.
Client: Business Owner
Amount Lost: $193,000
Commissions Charged: $118,000
Cold Spring has been retained by the owner of a janitorial company in Glenmoore, Pennsylvania seeking $193,000 in losses against two separate broker-dealers. The client transferred his money from a conservative bank to these firms and quickly incurred substantial losses. His brokers churned his account, excessively traded him on margin and invested him in highly speculative and risky positions.
Client: Retired
Amount Lost: $41,000
Broker Abuse: Suitability
Cold Spring has been retained by a 77 year-old retiree from Maine seeking $41,000 in damages against a New York City-based broker-dealer that traded his account on margin without authorization. His broker traded him in highly speculative positions and used principal riskless markup/markdown transactions to disguise the true amount of commissions being generated.
Client: Retired Professor
Amount Lost: $47,000
Commissions Charged: $62,000
Cold Spring has been retained by an 84-year-old retired professor in Lincoln, Nebraska seeking $47,000 in damages against a New York-based broker-dealer. His broker churned his account for commissions and traded the account on margin in highly speculative positions despite his age and limited risk tolerance.
Client: Marketing Executive
Amount Lost: $535,400
Commissions Charged: $200,000
Cold Spring has been retained by a 51-year-old marketing executive in Palo Alto, California seeking $535,000 in damages against a Seattle, Washington-based broker-dealer. His broker churned his account to generate commissions and traded the account on margin in highly speculative positions despite the client’s limited investment experience.
Client: Retired
Amount Lost: $115,460
Broker Abuse: Suitability
Cold Spring has been retained by a retiree in Burns, Texas seeking $115,460 in losses against a Syosset, New York-based broker-dealer who put the client at extreme financial risk as a result of unsuitable investment recommendations. His broker traded his account in highly speculative positions despite the client’s limited risk tolerance and used principal riskless markup/markdown transactions to disguise the true amount of commissions being generated.
