Conflict of Interest in Stockbroker's Suit

A stockbroker and her employer were accused of churning an account (buying and selling a client’s stocks too frequently in order to generate more commission, rather than reasonably buying and selling in the best interest of the client). This resulted in a loss to the client’s portfolio of $375,000. In-house counsel represented both the individual broker and her employer in the ensuing arbitration proceeding. The arbitration panel ruled against the stockbroker but not the employer, and the stockbroker was subsequently fired. The stockbroker then brought suit against staff counsel who had been assigned to represent her, alleging conflict of interest and negligence. Total Cost: $425,000

InsuranceSwingle Collins