A Financial Industry Regulatory Authority (FINRA) arbitration panel in New York has awarded $880,000 to elderly clients of Phil Scott of Bank of America Merrill Lynch’s Bellevue, Washington, office, who were unsuitably 100% invested in stocks, according to Dan Jamieson’s InvestmentNews article entitled “Merrill hit for $880K arbitration award.” The arbitrators also assessed 100% of the hearing session fees against Merrill Lynch. A claim for punitive damages was denied.
Scott was a big producer. He was reportedly ranked No. 30 on the Barron’s list of top advisers, with $1.8 billion under management, and ranks No. 1 on the list for the state of Washington.
Scott managed more than $1 billion of client money in a dividend growth strategy, called the Phil Scott Income Portfolio, according to the article. All Scott’s clients allegedly were invested 100% in stocks.
The clients acknowledged that they sold at or near bottom, despite Scott’s recommendation to hold. The award was about half of the $1.7 million in compensatory damages they had requested in their statement of claim.
Scott has three other pending arbitrations alleging misrepresentations and unsuitable stock investments from 2007 through 2009, according to the article.
The case is John J. Baker, Natalie N. Baker, and Harriet B. Baker vs. Merrill Lynch, Pierce Fenner & Smith, Inc., FINRA Dispute Resolution Arbitration Number 09-06762.
Page Perry has over 125 years collective experience representing institutional and individual investors in securities-related litigation and arbitration all over the country. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 45 occasions.