Case Results

1. Investor Recovery
2. Elder Financial Fraud Cases
3. Employment Cases
4. Regulatory Investigations, Disciplinary Hearings & Subpoena Attorneys
5. Whistleblowers
6. Commercial Litigation
7. Arbitration & Mediation representations
8. Expert Engagements and Cases that Made Law

About Our Results

Our New York securities fraud law firm has arbitrated and settled cases in the tens of millions of dollars. Given our stellar reputation, many cases are settled amicably between claimant and respondent under confidentiality and non-disclosure agreements. In fact, the best cases tend to end in a settlement. Over the years, Ms. Malecki has recovered tens of millions of dollars for clients, including multi-million-dollar settlements in several categories: securities arbitration and litigations, employment arbitrations, business disputes, and tax shelter fraud cases. Our success further extends to more public proceedings, with arbitrator rulings published within the archives of FINRA’s Arbitration Awards.

Investor Recovery

• $7,200,000 is the amount our New York securities fraud law firm recovered in settlements for a real estate-based Ponzi scheme in the Bronx involving a major brokerage firm
• $3.890 million in Biscayne Capital case, 2020-2021 on behalf of Latin American investors involving US brokerage firms – Biscayne associates indicted in EDNY
• $3.95+ million in settlement in insurance and accountant’s Ponzi Scheme involving several upstate and Long Island investors from major brokerage firm’s activity in a satellite office.
• $3,900,000 recovered for improperly recommended tax shelter fraud investments
• $2,950,000 settlement with a licensed limited purpose crypto brokerage firm in a case for a senior citizen involving the failure to follow Regulation BI in selling private placements relating to cryptocurrency investments, including monetary damages and recission for future capital call requirements
• $2,100,000 against a major financial institution & stock transfer company for failure to sell previous restricted stock for an Italian national
• $2 Million in settlement for a group of high net worth hedge fund investors during a FINRA arbitration
• $1,400,000 for Long Island victims of a Ponzi scheme run out of a satellite office of a brokerage firm
• $1,150,000 awarded in the case of an unsuitable investment for a former professional Baseball player.
• $1,000,000 in settlements for a group of ethnicity fraud Ponzi scheme investor victims
• Settled millions of dollars of claims for investors against former football star turned broker, who engaged in large-scale fraud and theft of client funds using false statements and P.O. Boxes in a FINRA arbitration
• $750,000+ settlement for retired entrepreneurs in FINRA arbitrations relating to an over-concentration case in losses in Puerto Rican bonds against a major financial institution
• $805,110: Duckkyu Chang, Kee Chang, et al. (Claimant) vs. McGinn, Smith & Co., Inc., Timothy M. McGinn, David Smith, et al (Respondents)
• $630,357: Michael Steifman (Claimant) vs. Merrill Lynch Pierce Fenner & Smith Inc. (Respondent)
• $625,000 settlement against a major brokerage firm related to extended hours trading session in an Exchange Traded Note and alleged violations of FINRA Conduct Rule 2265 "Extended Hours Trading Risk Disclosure"
• $600,000 settlement for family in case involving improper sale of illiquid private placements to family members from 27 years old to 90 years old by brokerage firm that also acted as the placement agent for the investments solicited to them
• $500,000 settlement for an investor for breach of fiduciary duty claim against his registered investment advisor alleging failure to follow client's risk tolerance and reckless investments
• $475,375: Joseph and Tomas Sollitto, Claimants vs. Global Capital Securities, Corp., Respondent
• $467,000: Robert Ferrucci (Claimant) vs. McLaughlin, Piven, Vogel Securities, Inc., and Laurence T. Tulenko (Respondents)
• $400,000+ AND arbitration costs and attorney fees: awarded to a Florida couple as damages in a case of breach of fiduciary duty, breach of contract, unsuitability, and negligence, among other things against Morgan Stanley & Co., LLC.
• $400,000 settlement involving using Prepaid Variable Forward Contracts in a trust account for a senior citizen to hedge a concentrated position using loans
• $350,000 settlement in case alleging failure to execute trading instructions, conversion of funds, fraud, failure to supervise, and breach of contract and industry rules
• $350,000 AND over $115,000 in attorney fees: awarded to victim of negligence and breach of fiduciary duty among other things in relation to his investment in unspecified mutual funds
• $200,000+ AND over $65,000 in attorney fees: awarded for misrepresentation and omissions, as well as unsuitable recommendations and lack of supervision by a securities firm toward one of their customers
• $160,000 settlement with an online trading platform and custodian for permitting the alleged theft of a minor's assets through the age of majority from an UTMA account by the custodian
• $152,494: Bart Delgado Sabal (Claimant) vs. Sky Capital, LLC, and Michael Passaro (Respondents)
• Obtained a full net out-of-pocket award of $142,168 on behalf of a senior-aged investor against Garden State Securities, Inc.
• $132,315: David Kast & K.P.M., Inc. (Claimants) vs. Greenway Capital Corporation / Dominick DeLorenzo / Barry Morton Ferrari / Joseph M. Guccione / Fred Luthy (Respondents)

Back to top

---

Elder Financial Fraud Cases

• Our securities fraud lawyers in New York are currently representing several elder investors seeking to recover over $4 million in claims relating to a Ponzi scheme targeting seniors
• Successfully represented trust for former “Mad Man” advertising executive that founded a major advertising company and was misleading sold a defective product and had his company stock mismanaged and diminished with millions of dollars of losses
• Successfully represented trust against a major brokerage firm which was not given required trading information relating after-hours trading causing losses in excess of $15 million
• Successfully represented three Argentinian families, including seniors, in case where an introducing and clearing brokerage firms allowed SEC barred individuals on their platform, who they allowed to sell a known Ponzi scheme, as well as allowed to drain the account of liquid stock, bonds and cash as an outright theft of approximately $12 million
• Our securities fraud law firm in New York successfully represented legally blind, elderly investor against US brokerage firm with UK affiliate, who improperly seized securities, to control of cash and refused to return the same to the investor, refused to transfer to another brokerage firm and converted for their own purposes
• Successfully represented estate in case of conversion and continued trading in an elderly woman’s account after her death in FINRA arbitration against major financial institution
• Successfully represented elderly widow with Parkinson’s disease and 24/7 care in a matter against major financial institution
• Successfully represented wheelchair-bound retired businessman and his wife in FINRA arbitration relating to unsuitable investments and misrepresentation in the sale of brokerage firm’s proprietary product
• Successfully represented retired doctor in Ponzi scheme against brokerage firm
• Successfully represented hundreds of retirees in cases involving churning, Ponzi scheme, unsuitable investments and fraud

Back to top

---

Employment Cases

• $3.8+ million recovered in a settlement for a group of financial advisors against a major international brokerage firm related to product failure, employment damages, and expungement
• Secured a $2 Million settlement in municipal securities industry compensation & sexual harassment claim through JAMS mediation
• 28 Expungements for three brokers: in case involving their sell of a defective securities product.
• $2,500,000 settlement in Municipal Securities Industry compensation & Sexual Harassment claim
• Secured a $2 Million settlement in municipal securities industry compensation and sexual harassment claim in Federal Court Southern District New York
• $275,000 in damages for FINRA arbitration involving churning and excessive fees in the account of a senior widow who has dementia against major financial institution
• $125,000: Michael M. Kownacki v. Morgan Stanley DW Inc; 6/04/07.
• $80,600: Janeice Hunt-Schmidt, (Claimant) vs. David Lerner and David Lerner Associates, Inc. (Respondents)
• Counterclaim award, including complete expungement and attorney fees of over $45,000: awarded to broker who was wrongfully terminated and defamed, among other things, by Wachovia Securities LLC. management
• Expungement*: Complete expungement for broker whose employer, Ameriprise Financial, made false claims against him in incident that resulted in both the broker and his client cutting ties with the firm. (*- Hearing successfully conducted via “Zoom”
• Expungement and attorney fees of close to $50,000: awarded to financial advisor wrongly accused of wrongdoing and unfairly tied-up in hearings for over 15 years.
• Expungement: Gregg D. Templeton vs. Morgan Stanley DW, Inc.; Registered Representative Claimant against his former employer alleging defamation by maliciously amending Claimant's U-4 form, breach of contract, constructive discharge, breach of fiduciary duty, interference with economic relations, and breaches of the implied covenant of good faith and fair dealing. Claimant ‘s record was ultimately expunged.
• Complete expungement and attorney fees: awarded for a broker against a major investment bank in FINRA arbitration

Back to top

---

Regulatory Investigations, Disciplinary Hearings & Subpoena Attorneys

• No Action in a potential insider trading case involving several tip-ees and tip-ors
• No Action after a FINRA 8210 request around a termination for alleged alteration of company documents.
• No Action in investigation into alleged structuring complaint around deposits under $10,000 adding up to $10,000 in a close in time
• No Action in a potential action involving Outside Business Activities (“OBA”s) and alleged issues with an SEC Rule 506(C) offering general solicitation and advertising
• No Action by SEC in insider trading case involving options and company insiders in trading contemporaneous with a merger between a US and Chinese company
• No Action taken in FINRA investigation into alleged fundraising outside business activity and working on a transaction after their license being terminated in violation of FINRA Rules
• No Action in a potential action by NYS Department of Financial Services (DFS) involving insurance salesperson relating to late forwarding of payments of policy premiums by a customer
• No Action by Financial Regulatory ("FINRA") in a potential action involving a licensed professional's insurance business practices done over Zoom and by telephone during COVID
• No Action by SEC for 2 individuals after full investigation and OTR regarding alleged spoofing and layering transactions by trader and assistant
• Obtained No Action Letter from FINRA Regulation Enforcement Department for Series 24 Supervisor under investigation for allegedly accepting client funds from an insurance annuity policy
• Obtained No Action letter from FINRA for investment professional alleged to have altered Bloomberg screens sent to clients
• Obtained No Action letter for financial professionals in matters involving allegations of embezzlement of client funds with sales assistant
• Obtained No Action in case involving alleged private securities transaction and outside business activity for a securities broker involving Countrywide and life bonded settlements
• Obtained No Action letter for investment professional for allegations relating to outside business activities
• Successfully obtained No Action after Wells submission to FINRA regarding allegedly mismarking order tickets
• Successfully represented NYSE floor broker in fully contested enforcement hearing on front running
• Successfully negotiated favorable AWC settlement with the SEC regarding alleged violations related to intentional altering of an analytical model through sets of assumptions reflected in the Offering Memorandum of the Regional Aircraft Securitization Program Offerings (“RASPRO”) transaction
• Settlement of Favorable AWC with FINRA relating to cherry-picking and front running by a fund manager
• Negotiated favorable AWC settlement with SEC for group of traders for allegedly operating an unregistered broker-dealer
• Obtained No Prosecution agreement from SEC for professional trader of US Inflation Trading desk related to alleged misreporting of losses on complex derivatives desk
• Obtained No Prosecution for two brothers in an SEC insider trading case
• Represented subpoenaed party in an SEC investing into EB-5 funding
• Represented subpoenaed individuals in SEC investigations involving Variable Annuity Sales Practices at a major brokerage firm
• Numerous ongoing representations of financial practitioners in negotiation disputes relating to Form U4 and U5
• Numerous ongoing representations of financial professionals in OTRs before SEC and FINRA for alleged rule violations
• Successfully represented Series 7 licensed broker in FINRA investigation relating to failure to report tax liens
• Successfully represented Series 7 investment professionals in issues of FINRA investigation relating to issues of failure to report regulatory settlement with CFP Board and several states

Back to top

---

Whistleblowers

• Awards:
  • Maximum 30% SEC whistleblower award for whistleblower in gaming-related securities fraud case
  • $2 Million for a Whistleblowing trader against former employer in FINRA arbitration
  • $2,000,000 recovered for a Whistleblowing trader against former employer
  • $500,000 settlement for under Sarbanes Oxley for an Analyst Whistleblower Employee
  • $500,000 for well-known financial analyst in CDO market at Department of Labor under Sarbanes Oxley for refusal to certify analyst report as edited by brokerage firm issuer and receives
• Representations:
  • Rating agency whistleblower under Sarbanes Oxley relating to the 2008 financial crisis pay-to-play ratings in Federal court case in Southern District NY
  • Institutional broker relating to currency trading manipulation involving major international inter-dealer broker-dealer under Dodd Frank
  • Credit Union whistleblower in blowing the whistle on fraudulent use of credit union assets under federal credit union act and federal deposit Insurance Corporation
  • Whistleblower in 10(b)- 5 fraud case against major international brokerage firm relating to PR Close-End bond funds
  • Whistleblower in claim under Dodd-Frank relating to issuer fraud involving complex structure easing product
  • Whistleblower in SEC asset collection acting agent previously sanctioned individual under Dodd-Frank
  • Whistleblower in Dodd-Frank international Ponzi scheme case

Back to top

---

Commercial Litigation

• Won a complete dismissal relating to walking away from over $50 million in a financing dispute between a hedge fund and a Chinese inventor
• Recovered substantial settlement for a brokerage firm against an energy company in contractual disputes over the terms of a Private Placement Engagement Letter involving $9 million in alleged breach over financing an oil and gas deal in Federal Court Southern District NY
• $1.9 million settlement for an Italian national against major financial institution for failing to remove restrictive legend on stock in Federal Southern District NY Court.
• $400,000 recovered from a major international brokerage firm for contract breaches and supervisory failures
• Won a highly contested, high profile contract dispute in the biotech investing arena against a major international law firm cooperating with the government
• Securities industry raiding case for firm sued, resolved with a handshake
• Won a complete dismissal for a brokerage firm in a case brought by consultants for alleged breach of contract and related claims in NY Supreme Court
• Successfully defended a Serbian entity in a jurisdictional dispute in New York
• Unwound a technology firm organized by three individuals who tried to squeeze out a minority partner
• Issuer defendants in dispute over a secured convertible debenture purchase agreement in a private offering in Federal Court Southern District NY
• Representation of several credit card processing companies in commercial disputes brought by former business associates involving allegations of fraud, conversion and related claims in NYS Supreme Court
• Consultant in JAMS arbitration involving issues of authorization of consulting agreement and aiding and abetting breach of fiduciary duty by a board of directors of a public company
• Technology patent holder in dispute over an online bidding system and conversion of securities in NYS Supreme court
• Inventor in alleged breach of licensing agreement and non-disclosure agreement with joint venture partner
• Residential cooperative apartment corporation against a mortgage agent for fraud and embezzlement in NYS Supreme Court
• Represented Comic Book Company in conversion of stolen artwork and recovered stolen artwork in question in NYS Supreme Court
• Represented international dating website in technology-related dispute with service provider for platform in Federal Court Southern District NY.

Back to top

---

Arbitration & Mediation Representations

• Successfully represented trust in case where an introducing and clearing brokerage firms allowed SEC barred individuals on their platform, who they allowed to sell a known Ponzi scheme, as well as allowed to drain the account of liquid stock, bonds and cash as an outright theft of millions of dollars
• FINRA arbitration representation for a retired entrepreneur in an over-concentration case of over $4 Million in losses in municipal bonds against a major financial institution
• Successfully represented retired Irish national and partner of major insurance company against brokerage firm in a FINRA arbitration relating to cold-calling and fraudulent misrepresentation around investing in a health care start-up on margin
• Successfully represented retired engineer in FINRA arbitration against brokerage firm relating to short-selling, margin and churning relating to positions in an energy company stock acquired after years of working in that company
• Represented lottery winners in a FINRA arbitration who lost their winnings because of churning, unsuitability, and fraud by a broker at a major financial institution
• Represented brain-injured accident victim in a FINRA arbitration who lost personal injury settlement because of fraud, misrepresentation, and unsuitability against a major financial firm

Back to top

---

Expert Engagements and Cases That Made Law

• Consulting expert on Ontonimo (OMO) Limited vs. BNP Paribas Securities Corp. – ($16.6 million FINRA award in 2015)
• Qualified by a FINRA Arbitration Panel as a testifying expert on FINRA Rules in successful arbitration involving a broker’s wrongful termination in Frechter v. Wells Fargo Advisors LLC
• Successfully arbitrated dismissal of claim against industry professional maliciously prosecuted and wrongfully named in a case, including obtaining attorneys’ fees awarded to the wrongfully named person through several state and federal appeals, obtaining additional fees along the way for numerous improper filings in Salvatore Del Priore v. Sabo
• In Lek v. Elek, successfully appealed a lower court decision, NY Appellate Division compelled arbitration between a foreign client trading US securities through a US broker-dealer with foreign office
• In McLaughlin, Piven, Vogel Sec., Inc. v Ferrucci, the appellant petitioned to have Ms. Malecki’s client’s award of attorney’s fees as damages overturned on the basis that it was not supported by NY law, but her client’s award stood and fees were collected based upon wide discretion given to arbitrators in interpretation of law.

Back to top

---

Attorney Advertisement. Prior results do not guarantee a similar outcome.

---