A National Association of Securities Dealers arbitration panel has awarded two petitioners an aggregate $269,537 from Citigroup Global Markets, Salomon Smith Barney, and Kevin Durkin Purcell.
The petitioners claimed breach of fiduciary duty and contract, material misrepresentation, and failure to supervise, among other charges. The arbitrators found for them on Aug. 4.
Douglas Motzer complained about investments in noninvestment-grade bonds and in shares of the Managed High-Yield Fund, Smith Barney High-Yield Fund, Kmart preferred stock, and Enterasys/Cabletron and Silicon Graphics stock. Cletus Morgan complained about investments in no-load mutual funds, growth equities, and mortgage-backed securities.
Mr. Morgan demanded about $206,000 in compensatory damages and interest and got $120,900. Mr. Motzer demanded about $275,000 in compensatory damages and interest and got $148,637.
The Citi respondents asserted that NASD lacked jurisdiction over the claims and asked that they be rejected.
