A dispute against Omaha-based independent BD Securities America Inc., registered rep Randall Ray Talbott and the now-defunct Medical Capital Holdings has been resolved with an award of more than $1 million to a claimant who accused the parties of breach of fiduciary duty and financial elder abuse.
On Dec. 31 in Los Angeles, an arbitration panel for the Financial Industry Regulatory Authority (FINRA) signed off on the dispute resolution that said Securities America and Talbott are liable to the claimant, Josephine Wayman, for compensatory damages of $734,118. In addition, Securities America must pay the claimant punitive damages of $250,000.
According to the panel's case summary, Wayman charged the respondents with seven actions, including breach of fiduciary duty, violation of industry rules, fraud and deceit, negligence and financial elder abuse. The causes of action related to her investments in the promissory notes of Medical Capital, a former California lender.
Executives at Securities America, an Ameriprise Financial subsidiary, were not pleased with the decision.
"The award was based on the specific facts of this investor's case, and we disagree with the outcome. Securities America does not believe it acted inappropriately in the sale of these investments," said company spokesperson Janine Wertheim.
In August 2010, Montana's Securities Commissioner filed a legal action against IBD Securities America for allegedly withholding "material information regarding heightened risks" of the sale of private placement promissory notes of Medical Capital Holdings, which are now in default, to investors in Montana. Corporate officers and executives as well as three salespersons were named in the August 4 complaint.
