The estate of deceased Home Shopping Network co-founder Roy M Speer has picked up $34 million after a Financial Industry Regulatory Authority (Finra) panel ruled against his advisors for excessive and unauthorized trading.
According to the Wall Street Journal
, Lynnda Speer, the widow of Mr. Speer, brought the case against Morgan Stanley alleging that one of its advisors, Ami Forte, and Terry McCoy, branch manager in Palm Harbor, had breached their fiduciary duty.
Speer’s attorney outlined that the duo engaged in “very aggressive, rapid bond trading” that was only marginally profitable Speer but earned significant revenue for the company itself.
However, according to the publication, the amount awarded to Speer fell significantly short of what she had been seeking. The estate was looking for $118.7 million in damages as well as $356 million in punitive damages and other amounts but was ultimately awarded $32.8 million plus interest, as well as $1.5 million for attorney’s fees and additional costs.
Speaking to Bloomberg
, Christine Jockle, a spokeswoman for Morgan Stanley, commented that even the lower pay-out was unjustifiable as the accounts of the client were profitable.
However, Speer’s attorney stated that the bank enjoyed commissions which were actually higher than the profits for Speer, while alleging that Forte was also Mr Speer’s mistress and that the estate would go after a condo she owns in the Cayman Islands.