Wednesday, December 30, 2020

$12.7 Million Estate Planning Equity Indexed Annuity Order

This month the King County Superior Court, State of Washington ordered CLA to pay $6.2 million in restitution and $6.5 million in civil penalties and issued injunctive relief in a case arising out of fraudulent free “estate planning” seminars used in part to gather information from unsophisticated seniors in Washington. The Order can be read here. Dr. McCann testified on behalf of the Washington Attorney General. The Court’s discussion of Mr. McCann’s testimony begins at page 29.

Friday, December 11, 2020

11th Circuit Affirms District Court Order Confirming $3.4 Million Puerto Rico Award

In December 2020, the US Court of Appeals for the 11th Circuit affirmed the April 2020 US District Court for the Southern District of Florida Order confirming an arbitration award against Morgan Stanley over Puerto Rico municipal bonds. You can read the Appeals Court decision here. You can read the District Court’s Order here. Previously in July 2019, a FINRA panel in Miami, FL ordered Morgan Stanley to pay $3,231,421 including $3 million in monetary sanctions for discovery abuse. You can read the award here. Dr. McCann testified on liability and damages over Puerto Rico closed end funds and municipal bonds.