Representative Results in High-Stakes Financial Litigation

Our recoveries reflect a long-standing record of success in complex financial litigation, securities arbitration, and investor protection matters. We have represented investors, institutions, and trusts in cases involving Ponzi schemes, broker misconduct, negligent supervision, unsuitable recommendations, securities fraud, and other sophisticated financial wrongdoing.

Selected recoveries and verdicts are listed below.

Results Snapshot

  • $70 Million settlement in a Medical Capital Ponzi scheme matter
  • $50 Million judgment against Ponzi scheme operators
  • $16 Million verdict against the FDIC
  • $11.1 Million verdict against Smith Barney for selling away
  • $4.5 Million recovery in a negligence and negligent supervision claim
  • $2.545 Million recovery involving UBS Puerto Rico fund losses
  • $2.2 Million verdict in a securities negligence action
  • $1.376 Million recovery against Merrill Lynch
  • $1.1 Million verdict against Morgan Keegan for securities fraud

$70 Million Settlement in Medical Capital Ponzi Scheme

In re: Medical Capital Holdings

Our firm served on the national steering committee representing the interests of more than 1,000 investors and helped negotiate a $70 million settlement with the broker-dealer that sold promissory notes in Medical Capital. The company, which claimed to purchase medical receivables at a discount using investor funds, was later revealed to be a Ponzi scheme that caused hundreds of millions of dollars in investor losses.

$50 Million Judgment Against Ponzi Scheme Operators

Katz v. MRT Holdings, LLC, et al. | Case No. 07-cv-61438 (S.D. Fla.)

In a Ponzi scheme action in which Sonn | Erez was appointed class counsel, the Court recognized the firm’s substantial qualifications and experience in handling similar matters. The firm ultimately obtained a $50 million judgment against the scheme operators and was later appointed counsel to the Receiver.

$16 Million Verdict Against the FDIC

The firm obtained a $16 million verdict in a contract and securities dispute against the Federal Deposit Insurance Corporation in federal appellate court.

$11.1 Million Verdict Against Smith Barney Broker for Selling Away

The firm obtained a verdict of more than $11.1 million, which included the recovery of all principal losses and an order requiring the bank to indemnify the claimants for a $10 million state court judgment entered against them.

The matter involved investors who suffered losses in a failed real estate development recommended by their Smith Barney broker, who engaged in unauthorized “selling away” in violation of FINRA and industry rules. The recovery represented 100% of the investors’ losses and is especially notable because the arbitrators held Smith Barney liable for the amount the investors owed under a separate final judgment.

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$4.5 Million Recovery for Negligence and Negligent Supervision

Banco Nacional de México, S.A., Institution de Banca Multiple, Fiduciary Division, as Trustee of the Trust Agreement Numbered 15437-5 v. Morgan Stanley & Co., Inc. | Case No. 12-01019

Our firm represented Banamex, as trustee of a trust beneficially owned by a Mexican family, in a FINRA arbitration against Morgan Stanley and recovered $4,500,000. The arbitration panel found negligence and negligent supervision.

The claim arose after an unauthorized cross-pledge was recorded on the trust’s accounts with a Morgan Stanley affiliate, effectively creating a guaranty for loans made to a third party. When the third party’s investments declined significantly during the 2008–2009 financial crisis, approximately $5.2 million was seized from the Banamex accounts based on the unauthorized cross-pledge.

The award is significant because it recovered nearly all of the funds taken from Banamex after an eight-day trial against a team from Greenberg Traurig.

$2.545 Million Recovery for Over-Concentrated UBS Puerto Rico Fund Losses

Rodriguez Gonzalez v. UBS Financial Services of Puerto Rico and UBS Financial Services

Our firm represented a retired couple that sustained significant losses in UBS proprietary closed-end funds invested predominantly in Puerto Rico bonds. The claim alleged that UBS broker Jose “Whopper” Ramirez recommended an over-concentrated position in the UBS Puerto Rico funds and improperly recommended the use of a non-purpose loan to invest in securities.

The FINRA panel awarded the claimants $2,545,000.

$2.2 Million Verdict for Negligence in a Securities Action

The firm obtained a $2.2 million verdict against PaineWebber in a securities action based on negligence.

$1.376 Million Recovery Against Merrill Lynch

Robert Billings and Michele Billings v. Merrill Lynch, Pierce, Fenner & Smith, Inc. | Case No. 11-01948

The firm recovered $1,376,463 for investors who purchased Fannie Mae preferred shares after a Merrill Lynch broker recommended the investment in late July 2008. Within 45 days, Fannie Mae entered conservatorship and the investment was nearly wiped out.

The award is believed to be the largest recovery for public investors in Fannie Mae preferred shares and reflects the panel’s finding that Merrill Lynch breached its fiduciary duties to its clients.

$1.1 Million Verdict Against Morgan Keegan for Securities Fraud

Cobb v. Morgan Keegan & Co. (FINRA)

The firm obtained a $1.1 million verdict against Morgan Keegan in a matter involving alleged securities fraud in the sale of Morgan Keegan closed-end and open-end mutual funds, including the RMK Multi-Sector High Income Fund, RMK Advantage Income Fund, RMK Select High Income Fund, RMK High Income Fund, and RMK Strategic Income Fund.

The verdict and subsequent recovery represented approximately 80% of the investor’s net losses.

Why These Results Matter

These recoveries reflect more than large dollar figures. They demonstrate the firm’s ability to handle complex disputes involving institutional defendants, sophisticated financial products, and high-stakes investor claims. In each matter, the focus remained the same: hold wrongdoers accountable, pursue meaningful recovery, and deliver disciplined advocacy for clients who suffered significant losses.

If You Suffered Investment Losses

If you lost money because of broker misconduct, unsuitable investment recommendations, Ponzi scheme activity, or securities fraud, our firm can evaluate your claim and advise you on available recovery options.

Significant investment losses deserve serious legal analysis.
Our firm represents clients in securities arbitration, financial fraud matters, and investor recovery cases.