Recent Cases | Page 10 | Cold Spring Advisory Group

Recent Cases

Client: Farmer

Amount Lost: $161,000

Commissions Charged: $50,000+

Cold Spring has been retained by a soybean, corn and hog farmer from Adams, Minnesota, who is seeking $161,000 in damages against a Woodstock, Georgia broker-dealer. Cold Spring's analysis found that this client, who invested his wife's inheritance, was put into highly speculative positions that were unsuitable for his investment profile and his account was excessively traded (churned) to the degree that in fewer than four years, he was charged over $50,000 in commissions.

Client: Retired US Veteran

Amount Lost: $200,000+

Broker Abuse: Unsuitability

Cold Spring has been retained by a 66-year-old retired US veteran from Illinois who is seeking $200,000 in damages against a New York City broker-dealer for excessive use of margin, unsuitability and over-concentration. Cold Spring's analysis found that every conservative stock he transferred into his account with this broker-dealer was sold within 1 month and invested entirely in Amarin, a highly speculative stock. He was traded on full margin and lost his complete investment in 1 year. This client's only prior experience in the stock market was the pension account he had invested with Fidelity for 30 years.

Client: Postal Worker

Amount Lost: $31,800

Broker Abuse: Unsuitability

Cold Spring has been retained by a 70-year-old Massachusetts postal worker whose broker at a New York City broker-dealer sold his conservative positions and replaced them with junk bonds. Excessive use of margin and hidden commissions resulted in the loss of $31,800, representing his entire savings for his retirement.

Client: Retired

Amount Lost: $80,000

Commissions Charged: $42,000+

Cold Spring has been retained by a 74-year-old retired man from Deer River, MN who is seeking $80,000 in damages against a Long Island, NY broker-dealer for excessive and unauthorized trading. Cold Spring's analysis found that in a single month, with less than $9,500 of equity in the account, his broker bought $632,000 and sold $618,000 in equities. In the four-month period he had the account, this client was charged over $42,000 in fees and commissions.

Client: Farmer

Amount Lost: $292,000

Commissions Charged: $100,000+

Cold Spring has been retained by a 63-year-old farmer from Nebraska seeking damages against a Woodstock, Georgia broker-dealer of $292,000 resulting from churning, excessive use of margin and unsuitable placements in highly speculative positions. Cold Spring's analysis found this client paid over $100,000 in commissions and lost his entire investment in less than 1 year.

Client: Antique Dealer

Amount Lost: $53,000

Commissions Charged: $30,000+

Cold Spring has been retained by a 74-year-old antique dealer in Wisconsin seeking damages against a New York City broker-dealer for allegations of excessive use of margin and charging excessive commissions camouflaged in markups and markdowns. Cold Spring's analysis found this client lost approximately $53,000 and paid over $30,000 in commissions.

Client: Retired

Amount Lost: $45,000

Commissions Charged: $59,000+

Cold Spring has been retained by a 78-year-old retired sanitation worker living in Lancaster, CA. This client is seeking $45,000 in damages against a Long Island, NY broker-dealer for excessive trading (churning for commissions) and suitability abuse. Cold Spring's analysis found he had been charged over $59,000 in commissions and fees. He had no prior experience in the stock market, yet the three brokers managing his account put him in ETFs and other very sophisticated, highly speculative positions.

Client: Retired

Amount Lost: $160,000

Commissions Charged: $100,000+

Cold Spring has been retained by a 70-year-old investor living in Bullhead City Arizona who is seeking $160,000 in damages against two New York City brokerage firms. Cold Spring's analysis found that this client was charged over $100,000 in commissions and fees. In both cases, the client, who had no prior stock market experience was put into unsuitable positions, such as options and other speculative stocks, and his account was excessively traded (churned).

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