LOS ANGELES, CALIFORNIA. An NASD arbitration panel awarded more than $300,000 to a Palm Springs, California couple, Larry and Penny Seick, as a result of wrongdoing in their brokerage account at Financial Goal Securities, Inc.
In 1986 the couple was involved in a serious automobile accident, according to their attorney, Philip M. Aidikoff of the Beverly Hills and Palm Springs law firm of Aidikoff & Uhl. Mr. Seick lost a leg and both he and his wife were injured and unable to work. More than a year later they received a settlement that they knew would have to last them for the rest of their lives. In January of 1993 they opened an account at Financial Goal Securities, Inc. telling their broker that their investment objectives were conservation of principal and income. Prior to the accident Mr. Seick had been an actor and Mrs. Seick was employed as a hairdresser, this was the couple’s first brokerage account.
Despite their clear instructions that safety was their primary goal, a portion of their portfolio was invested into Private Placements, for which the brokerage firm received large commissions. Private Placements often involve a great deal of risk and were unsuitable for the Seicks. Several of the Private Placement investments soured resulting in losses of $152,952. The arbitration panel awarded the Seick’s losses plus lost opportunity, attorneys fees and costs for a total award of $311,954. The brokerage firm at first denied all liability for the losses according to Mr. Aidikoff, who added “This case demonstrates how people who are willing to fight for what is right can receive justice”. Aidikoff & Uhl limits its practice to the representation of individuals in claims against brokerage firms.