| April 22
April 22 An Arizona-based investment adviser
must pay a unit of Charles Schwab Corp a total of
slightly over $4.1 million in damages stemming from an options
trading error, according to a securities arbitration panel
A Financial Industry Regulatory Authority arbitration panel
on Friday ordered Scottsdale-based Private Client LLC and its
head, Timothy Moran, to pay the sum to Charles Schwab & Co Inc,
which alleged the two were negligent in placing two options
orders, according to the ruling.
Private Client and Moran did not immediately return a call
requesting comment. A Schwab spokesman declined to comment.
Schwab provides custodial and brokerage services to thousands
of investment advisers who register with the U.S. Securities and
Exchange Commission and state securities regulators.
Schwab alleged it incurred $3.4 million in losses because of
incorrect trading instructions placed by Private Client and
Moran. FINRA arbitrators ruled that Schwab proved its case "by a
preponderance of the evidence."
In addition to awarding Schwab $3.4 million in damages,
arbitrators also ordered Private Client and Moran to pay
$572,000 in interest and $147,000 in legal fees.
The arbitration ruling posted Monday on FINRA's database did
not include an explanation for the decision, although
arbitrators wrote that they provided one to the parties.