The proceeding arose out of a Financial Industry Regulatory Authority (FINRA) arbitration commenced on November 19, 2021. Our client, Anita Frankel (Petitioner), alleged that her financial adviser, Seymour Cohen (Respondent), convinced her to loan him $200,000 from the funds he managed on the promise that it would be repaid with interest upon the sale of a property he owned.
When she sought repayment more than five years later, she discovered the property was being foreclosed upon. The arbitration also sought relief against Cohen’s employer, Wilmington Capital Securities, and alleged breach of fiduciary duty, negligence, and negligent supervision.
An arbitration award was rendered on August 25, 2022. The arbitrator determined that Respondent was served with the November 19, 2021 Claim Notification Letter by regular mail, a January 11, 2022 Overdue Notice which included the Statement of Claim by regular mail and FedEx, and a February 4, 2022 Notification of Arbitrator by regular mail (id.).
The arbitrator found that Respondent failed to register for the dispute resolution portal and “did not file a properly executed Submission Agreement but is required to submit to arbitration pursuant to the Code of Arbitration Procedure” (id.). The arbitrator found that Respondent was liable to pay Petitioner compensatory damages of $383,158.04 with interest at a rate of 5.43% per annum from January 19, 2010 through June 30, 2022 (id.).
Cohen was barred from the industry on October 31, 2022 for failure to comply with the arbitration award or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
In a special proceeding brought pursuant to CPLR Article 75, Anita Frankel sought confirmation of the arbitration award and an entry of judgment thereon in favor of Petitioner and against Seymour Cohen. The award for our client was confirmed.
Silver Law Group is a law firm that represents victims of securities and investment fraud. Our attorneys represent investors nationwide in class action lawsuits against issuers in state and federal court and in securities arbitration claims in cases of stockbroker misconduct.
Silver Law Group represents investors nationwide in cases of stockbroker misconduct and securities and investment fraud. Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a consultation at no-cost at ssilver@silverlaw.com or call (800) 975-4345.