NEW YORK, Feb. 21, 2007 (PRIME NEWSWIRE) -- The New York Securities Arbitration Law Firm of Stuart D. Meissner LLC announced today that this week it has filed an arbitration claim before the National Association of Securities Dealers Inc. ("NASD") on behalf of a retired Staten Island couple aged 60 and 67 seeking over $920,000 in economic damages, in addition to a multiple of punitive damages, against Jesup & Lamont Securities Corp., its President, its Chief Executive Officer and broker Charles Moni.
It is alleged that Mr. Moni, who has a lengthy disciplinary and arbitration history which was unknown to the couple, mishandled the couple's account through unsuitable and excessive discretionary trading on margin causing catastrophic losses in the account. The Claim alleges that the couple lost over $680,000 of their 1.5 million dollar nest egg from April 2004 through November 2006. The Claim alleges, that in late 2005 Moni invested 42% of the couple's entire account, along with margin, all in one stock, Rigel Pharmaceuticals (Nasdaq:RIGL). As a result, the couple suffered a 76% catastrophic loss in their account or $450,000 all on December 1, 2005 when Rigel collapsed.
In addition, to taking unsuitable risks within the retired couple's account, it is alleged that Mr. Moni was permitted to churn their account resulting in almost $200,000 in commissions and margin interest being charged to them. The Claim asserts that when the couple raised concerns about the excessive trading in the account, Mr. Moni asserted "this is how it is done" and that they should rely upon his experience.
According to the Claim, due to the broker's complaint history, both the State of Virginia Division of Securities and the State of Massachusetts required heightened or special supervision to be enforced over Mr. Moni. The Claim asserts that despite this history, the brokerage and its supervisors failed to properly supervise Mr. Moni.
The Meissner law firm, is a nationally recognized law firm with its primary focus being securities arbitration matters, led by former New York Attorney General Eliot Spitzer prosecutor Stuart D. Meissner Esq., The firm is seeking other possible customers of Jesup & Lamont and Mr. Moni who may have similarly been invested in or traded in Rigel Pharmaceuticals (Nasdaq:RIGL) as well as other securities traded in the couple's account including Eresearchtechnology, Iris International Inc., Nastech Pharmaceutical, and Medis Technologies Ltd., so as to further their client's claim and investigate Jesup & Lamont sales practices. If you wish to discuss this announcement or have information relevant to securities arbitration claims please contact: