By Robert H. Rex, Esq.
A FINRA arbitration panel in Orlando, Florida, just ordered NSM Securities and two of its brokers to pay damages in excess of $187,000 to resolve the claims of an investor who brought an action for unauthorized and unsuitable transactions of speculative trading of stocks on margin. The stocks included Drexion ETF, SOHU.com, Amazon and Netflix.
The arbitration panel found that NSM Securities and their brokers Niyukt Raghu Bhasin and Arun Raghuveer Kapse were jointly and severally liable for common law breach of contract, negligence and recklessness. The panel awarded interest at the rate of 4.75% from October 27. 2011, but denied the claimant’s request for punitive damages and attorney fees. Vishnu Yelamanchi v NSM Securities, Inc. et al, FINRA Case #12-3702.
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