David W. Couch, Leslie L. Briley, Jr., et al. v. Wedbush Morgan Securities, et al. (NASD Arbitration No. 00-00737)
Following a seven-day arbitration, a Los Angeles-based NASD securities arbitration panel voted unanimously to award a group of 11 investors represented by Montgomery G. Griffin a total of $1,086,000, which included 100% of their losses resulting from a leveraged-bond strategy that used borrowed funds to acquire bonds on margin. The investors had been charged undisclosed “markup” commissions on many of the bonds acquired. The group of investors represented by Montgomery Griffin—all of whom dealt with the same broker, who was a part-owner of the holding company for Wedbush Morgan Securities—included a retired school teacher (and his wife), a retired airplane mechanic (and his wife), two successful businessmen (and their wives), and a longtime Venice Beach-based attorney. News accounts of this important victory were covered by the Wall Street Journal, the Los Angeles Times, and the Orange County Register.