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Recent Cases: Retiree recovers $700,000 from MSDW |
In August 2007, an NYSE Panel awarded $700,000 to Claimant Ernie Goetzman, representing a full recovery of the losses in his IRA. Mr. Goetzman, a 65-year-old retired factory worker who did not finish high school, rolled his IRA over to Morgan Stanley Dean Witter in April 2000. Mr. Goetzman’s IRA was essentially all he had to live on for the rest of his life. Since he was retired, these funds were irreplaceable. However, contrary to his investment objectives, MSDW's Augusta, Georgia branch office invested more than 60% of the account in high risk technology stocks such as Network Appliance, Advanced Micro Devices and Exodus Communications, as well as one proprietary technology mutual fund. As a result, Mr. Goetzman’s account lost over $700,000 in less than a year. Unbeknownst to Mr. Goetzman, his broker at MSDW was battling alcohol addiction during the time he was handling Mr. Goetzman’s account, and the branch manager was subsequently banned from the industry for defrauding several customers. The case was handled by Ed Dovin and Sandra Malkin. |
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