Ryon McCabe Wins FINRA Arbitration Against FMSBonds, Inc.
McCabe Rabin, P.A. is proud to announce that firm partner Ryon McCabe recently prevailed after a four-day FINRA arbitration hearing against FMSBonds, Inc., a broker-dealer that specializes in recommending municipal bond investments to clients.
Over-Concentration of Puerto Rico Bonds
McCabe represented Dr. Jacob Zabara, a retired inventor of medical devices, in a claim that involved over-concentration of Puerto Rico bonds. The Commonwealth of Puerto Rico is a U.S. territory that issues municipal bonds much like other U.S. states and municipalities. Puerto Rico has been much in the news lately due to the catastrophic default of many of its general obligation municipal bonds. McCabe and Dr. Zabara alleged that FMSBonds had violated the old adage of “placing too many eggs in one basket” by recommending that Dr. Zabara purchase too many of these Puerto Rico bonds in relation to the rest of his overall portfolio. This is commonly referred to as an “over-concentration” claim.
The Findings by FINRA
The arbitration, FINRA Case Number 15-00304, took place in Boca Raton, Florida before a three-person arbitration panel. The panel found FMSBonds liable for negligent supervision, breach of fiduciary duty and breach of contract and ordered the firm to pay Dr. Zabara compensatory damages in the amount of $218,600.
McCabe congratulates Dr. Zabara on this victory and also thanks firm paralegal Kelly Shivery for her excellent and outstanding work throughout the case and arbitration hearing.