DENVER, Oct. 14, 2015 (GLOBE NEWSWIRE) -- Goodman & Nekvasil, P.A., announces that it has won a FINRA arbitration award on behalf of a 79 year old retiree from Littleton, Colorado, against Presidential Brokerage, Inc. The claimant sought legal representation after he learned he had been victimized by Presidential Brokerage, Inc. ("PBI"), a broker-dealer and registered investment advisor to whom the claimant had entrusted his life savings for many years.
In June 2008, the claimant's PBI investment advisor, Jason S. McBride, recommended that claimant invest $475,000 in Washington Park Office Center, LLC, Tenant in Common, an office building in Dayton, Ohio. McBride, who admitted never reading the complete risk disclosure documents, split a $33,032.91 commission with PBI. The markup on this equity investment was 47.59 percent, and the vacancy rate in Dayton, Ohio, in June 2008 was approximately 20.4 percent. This investment ultimately went into foreclosure, and the claimant lost a significant portion of his retirement savings.
A Denver, Colorado, arbitration panel agreed with the retiree's claim that he had been victimized by PBI. Although the claimant’s out-of-pocket losses were only $413,866.57, the panel issued an award of $653,795.79.
"PBI's conduct shocks the conscience," said Kalju Nekvasil, Esq., of Goodman & Nekvasil, P.A. According to Nekvasil, the claimant's Clearwater, Florida, attorney, the evidence showed that PBI did not conduct any independent due diligence on this investment, that PBI did not have any procedures covering the marketing of this investment, and that the firm allowed McBride to offer this investment to the claimant before it was approved by the firm and before a selling agreement was executed.
