In the Press

Broker to Pay $1.1 Million on Bond Loss

Government-Bond Scheme Proves Too Good To Be True for Investors
Montgomery Griffin represented a group of nine (9) investors against two brokerage firms (Wedbush Morgan Securities and Long Securities) and one broker who sought to recover investment losses exceeding $1 million in Freddie Mac and Ginnie Mae mortgage-backed securities. The investors’ funds had been leveraged by use of margin borrowing in their accounts; however, the risks inherent with margin purchases had not been disclosed to them. Mr. Griffin’s clients ranged from sophisticated businessmen to retired, elderly couples. Mr. Griffin was opposed by three different law firms (one for each respondent). Following the nearly two-week arbitration hearing, the Panel ordered a return of $1.1 million to Mr. Griffin’s clients. 

Couple Awarded $125,000 in Funds Collapse

Repayment Ordered in Funds’ Collapse
and A retired couple represented by Montgomery Griffin obtained an arbitration award of $125,000 following their loss of $88,000 in an IRA account which had been invested in an oil and gas partnership. The investment had been falsely represented to them as “safe” and “guaranteed to produce income.” The principal owner of the scheme was later sentenced to jail following a criminal trial.

Ex-brokerage Must Pay Widow $122,000

Company Ordered to Pay Woman in Oil Lease Swindle
Montgomery Griffin represented a widow who obtained a $122,000 arbitration award following her loss of retirement savings in an oil and gas partnership which had been represented to her as an alternative to bank CDs. Perhaps most significantly, at Mr. Griffin’s request during his closing argument, the Panel included a specific finding of fraud against the brokerage firm - which precluded the firm and its principals from later discharging the award in bankruptcy.

Seniors, Estate Sue Over Promissory Notes

Several senior citizens eventually obtained a judgment in Superior Court for retirement losses they had suffered by investing in promissory notes that had been misrepresented to them as viable alternatives to bank CDs. Montgomery Griffin served as a consultant and expert witness to the law firm which represented the investors.

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