Our client was employed as a bus mechanic with the City of Los Angeles. He went to the defendant stock brokerage house and was induced by a broker to invest his life savings of $30,000 in three highly speculative limited partnerships involving a cosmetic store chain. The client lost all of his money. This action was brought before the NASD to compel the defendants to pay our client the monies he lost.
The broker’s liability was predicated on negligence and the firm’s liability was predicated on a failure to supervise the broker. After an arbitration hearing, the three member NASD panel awarded our client the sum of $40,000. A petition has been filed with the Los Angeles Superior Court to have the arbitration award entered as a judgment against the defendants.