FINRA Orders Wealth Management Firm to Pay 19 Exxon Retirees $3.8 Million

A Financial Industry Regulatory Authority (“FINRA”) arbitration panel has reportedly ordered a Houston-based wealth management company to pay 19 retirees a total of $3.8 million for mismanaging their investment accounts.  In the case, a group of former Exxon-Mobil Corporation employees claimed that USCA Capital Advisors LLC mislead them about the company’s investment strategy and performance.  The retirees also accused the wealth management firm of breaching its fiduciary duty, omitting important facts, committing breach of contract, failing to supervise company employees, and negligence.  In sum, the investors sought more than $12 million in damages.

Following a hearing before the FINRA panel, the retirees received an award for the amount of damages they stood to gain if the USCA Capital Advisors had performed as promised as well as $853,000 in punitive damages.  Interestingly, punitive damages are rarely awarded in following a FINRA arbitration.  The panel declined to explain its punitive damages award.

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