Client: Farmer
Amount Lost: $85,000
Commissions Charged: $108,000
Cold Spring has been retained by a farmer in Hoyt, Kansas seeking $85,000 in damages against a broker-dealer in Uniondale, New York that repeatedly executed trades for commission. During the 6 months that it was active, the account's cost maintenance was excessively high at 794% and the client lost 98% of his investment within 5 months.
Client: Engineer
Amount Lost: $400,000
Commissions Charged: $210,000
Cold Spring has been retained by a 75-year-old engineer in Northbrook, Illinois seeking $400,000 in damages from a Syosset, New York broker-dealer that made unsuitable investment recommendations and churned the account for commission. The broker executed a high-risk investment strategy that focused on highly speculative positions, including futures and options, without authorization from the client.
Client: Doctor
Amount Lost: $375,000
Commissions Charged: $175,000
Cold Spring has been retained by a 62-year-old doctor from Maine seeking $375,000 in damages against a broker-dealer in Uniondale, New York that excessively traded 3 separate accounts for commissions. These accounts were clearly churned and cost maintenance for each one was incredibly high at 300%.
Client: Builder
Amount Lost: $44,000
Broker Abuse: Suitability
Cold Spring has been retained by a 73-year-old builder in Freeport, Illinois seeking $44,000 in losses against a Garden City, New York broker-dealer that made unsuitable investment recommendations. Against the explicit order of the client, the broker invested in highly speculative positions, and upon learning of the client's dissatisfaction, the broker refused to take his calls. As a result, the client incurred substantial losses in the 2 years the account was open.
Client: Attorney
Amount Lost: $182,000
Commissions Charged: $32,000
Cold Spring has been retained by a 73-year-old attorney from Washington, DC who is seeking $182,000 in damages against a New York City broker-dealer that churned his account and made unsuitable recommendations for his investment. The client's account had a high cost maintenance of 85% and was excessively traded on margin without the client's authorization. He lost 82% of his investment in just six months.
Client: Farmer
Amount Lost: $26,000
Commissions Charged: $20,000
Cold Spring has been retained by a 67-year-old farmer from Comfrey, Minnesota is seeking $26,500 in damages from a New York City broker-dealer that excessively traded his account for commissions. The client lost 48% of his investment within the first two months and his broker used principal riskless mark-up/mark-down transactions to disguise over $20,000 he made in commissions over a 3-month span.
Client: Business Owner
Amount Lost: $42,000
Commissions Charged: $32,000
Cold Spring has been retained by a business owner in Santa Ana, California is seeking $42,000 in damages against a New York City broker-dealer who churned his account and made numerous trades that were unsuitable to the investor's profile. The broker had the account at an extremely high cost maintenance of 124%, had him on excessive margin and excessively traded the account to generate commissions.
Client: Car Dealership Owner
Amount Lost: $152,000
Commissions Charged: $100,000
Cold Spring has been retained by a car dealership owner in Pensacola, Florida seeking $152,000 in damages against a Woodbury, New York broker-dealer who altered his investor portfolio without authorization and severely churned his account. His broker was trading options when the investor had no experience in options and had him on excessive margin without his knowledge. At one point, the broker executed an astonishing 2.5 million transactions in a single month, solely for the purpose of generating commissions.
