FINRA Orders Northeast Securities Inc to Pay $1.76 Million to Client

A Financial Industry Regulatory Authority Inc. (FINRA) arbitration panel has awarded a former client (Claimant) of Northeast Securities Inc., $1.76 million in compensatory damages in a case involving bond transactions. The Claimant had sought damages of $3 million.

The Claimant charged the firm and three of its brokers with common law fraud, failure to supervise, churning, breach of fiduciary duty, misrepresentation, negligence, gross negligence, negligent misrepresentation, and violation of FINRA and Securities and Exchange Commission (SEC) rules. According to FINRA’s records, the case involved corporate bonds.

The award states that Northeast Securities Inc., which is based in Uniondale, N.Y., must also pay interest on the award of 9% per year from March 1, 2012 until the award has been paid. Northeast Securities and its brokers also have to pay the Claimant’s expert witness the fees of $33,840.

The FINRA arbitration panel also denied requests from the three Northeast Securities brokers named in the case, Stephen Joseph Perrone, Diane Hawkins and Jonathan Michael Zucker to have their records expunged in FINRA’s Central Registration Depository (CRD).

If you were a client of Northeast Securities and/or brokers, Stephen Joseph Perrone, Diane Hawkins and Jonathan Michael Zucker, and you experienced losses involving bond sales due to their actions or recommendations, call Soreide Law Group for a no-cost consultation for the possible recovery of your losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA and we operate on a contingency fee basis.  Let our years of experience work for you.


2017-07-12T18:57:00+00:00 July 12th, 2017|

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