Complaint Accusing Advisor of Churning Retirees' Accounts Dropped
In the case, an RIA had been blamed for costing a couple over $800,000 through excessive and inappropriate trades.
A lawsuit accusing a Connecticut investment advisor of making excessive and inappropriate trades for a retired couple has been withdrawn.
In a complaint filed in November, Terry and Nancy Chabot alleged that Samir Shehu, managing principal at Shehu Asset Management, an RIA in Southbury, Connecticut, cost the couple more than $800,000 over 18 months by churning their holdings and investing in penny stocks.
Terry Chabot died nine days after the suit was filed, Connecticut Superior Court records indicate. The couple’s attorney withdrew the complaint July 26, according to a court filing that didn’t offer an explanation.
In a filing late last year asking the court to compel arbitration, Shehu and his firm called the allegations baseless and said the advisor and firm were never compensated based on trading volume.
Interactive Brokers Group was initially named as a defendant in the case, but the Chabots’ lawyer removed the brokerage from the case in December.
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