Oppenheimer To Pay Boston Market Co-Founder $1.1 Million - Finra Panel
August 30 2011 - 3:13PM
Dow Jones News
Oppenheimer & Co. Inc. must pay more than $1.1 million for
personal losses suffered by a co-founder of Boston Market Corp. who
accused the firm of excessive trading in his account, among other
things.
A Financial Industry Regulatory Authority arbitration panel in
Denver ordered Oppenheimer, an investment firm subsidiary of
Oppenheimer Holdings Inc. (OPY), to pay more than $1.1 million to
investor Steven Kolow, who co-founded Boston Chicken, a restaurant
in Newtown, Mass., in 1985. It would later expand to a restaurant
chain, becoming Boston Market Corp. in 1995.
The ruling was a partial victory for Kolow, who requested more
than $4 million in damages, according to a ruling dated Aug. 26. He
also asked that Oppenheimer be required to repay profits it earned
through "alleged excessive trading" in his account.
Kolow filed the case in July 2010, alleging breach of fiduciary
duty, negligence and other wrongdoing. The claim involved purchases
of certain stocks, including Alcoa Inc. (AA) and General Electric
Co. (GE) and call options for those securities, according to the
ruling.
An Oppenheimer spokesman said the firm "strongly disagrees" with
the outcome. Kolow is an "experienced active investor," he
said.
As is typical of most arbitration rulings, the panel didn't
explain the reasons for its decision.
Lawyers for Kolow declined to comment, and efforts to locate
Kolow weren't successful.
-By Suzanne Barlyn, Dow Jones Newswires; 212-416-2230;
suzanne.barlyn@dowjones.com
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