Retired Rochester, NY Teacher Awarded Over $450,000
Retired Rochester (NY) Teacher Awarded Over $450,000
American Portfolios Financial Services, Inc. of Holbrook (NY) Found Liable
ROCHESTER, NY (November 6, 2017) — On November 2, 2017, a Financial Industry Regulatory Authority (“FINRA”) Arbitration Panel awarded Elizabeth Jachles (“Libby”), a retired Brighton teacher, $461,377.15 to be paid by American Portfolios Financial Services, Inc. The award is the result of the investment advice Libby received from Frank and Jeremy Monte, the principals of Harbor Capital Advisory Services at 10 East Church Street, Fairport, NY.
This case illustrates the disastrous consequences of combining a very sweet, but unsophisticated client (Libby); greedy brokers who could take advantage of that client (Frank and Jeremy Monte of Harbor Capital Advisory Services); and a broker-dealer who utterly failed to supervise its brokers (American Portfolios).
In 2015, Elizabeth Jachles hired attorney Jason Kane of Peiffer, Rosca, Wolf, Abdullah, Carr & Kane, APLC to represent her claim against American Portfolios. While the stock market saw substantial growth, Libby earned relatively nothing on her investment portfolio. In fact, in some years, her investment expense was greater than her annual salary as a Brighton schoolteacher. The brokers and security issuers made close to $300,000 off of Libby. Basically, the investment strategy benefited everyone except Libby, the investor taking the risks.
Unfortunately, Kane is all too familiar with this type of misconduct. “Commission and fee grabbing advisors, failed brokerage firm supervision, and an unsophisticated investor who was taken advantage of is a situation I see too often,” he stated.
The testimony of American Portfolios’ Supervisor, Tom Wirtshafter, explicitly displays the shocking misconduct by the brokers at Harbor Capital and indifference of American Portfolios:
“Would it bother you to learn that Jeremy and Frank Monte earned more income managing Libby’s accounts than Libby made investing in her accounts?”
Tom Wirtshafter: “Yes, it would sadden me. But, it doesn’t mean anything.”
The award was pursuant to the following claims by Jachles against American Portfolios: breach of fiduciary duty, violation of FINRA rules, negligence, breach of contract, aiding and abetting, unjust enrichment, and respondeat superior.
To reach the $461,377.15 award, the FINRA Dispute Arbitration Panel determined that American Portfolios was liable for and shall pay Jachles the following:
- Compensatory Damages: $338,450
- Interest: $106,612
- Costs: $15,950.15
- Filing Fees: $350
“We are thrilled that Libby and her family were able to recover some of the money Harbor Capital’s bad advice [and American Portfolios lack of oversight] cost her,” Kane added.
What to Do if You Think You Were a Victim of Investment Fraud or Broker Misconduct
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About Peiffer Rosca Wolf Abdullah Carr & Kane, APLC
Peiffer Rosca Wolf is a nationwide litigation law firm that represents individuals and entities that have been the victims of negligence, fraud or the misconduct of powerful interests. We are smart, experienced, and dedicated professionals who work tirelessly for our clients and take pride in the pursuit of justice on their behalf. Too often the powerful interests in our society run over the rights of ordinary people. We do our best to restore that balance.
- Peiffer Rosca Wolf Abdullah Carr & Kane, APLC
- Jason Kane, Shareholder