Tuesday, March 24, 2009

FINRA Arbitration Panel Finds Associated Securities and Jeffrey Forrest Liable and Awards More Than $8.8 Million to Investors

A FINRA arbitration panel awarded damages of $8,858,596 against Associated Securities and it’s broker Jeffrey Forrest in connection with the sale of the Apex Hedge fund to 16 households, who lived primarily in San Luis Obispo county in California.

The investors were represented by Philip M. Aidikoff and Robert A. Uhl of Aidikoff, Uhl & Bakhtiari, a Beverly Hills, California law firm (www.securitiesarbitration.com) that represents investors in disputes with the securities industry.

In 2005 and 2006 Associated Securities broker Jeffrey Forrest solicited his customers to purchase the Apex Hedge fund. The customers were told that Apex was an investment that provided safety, security and liquidity of investor principal. In truth, Apex was a highly speculative hedge fund that engaged in risky options trading and was wiped out in 2007.

The FINRA arbitration panel found that Forrest’s representations to his clients, including the Claimants, about the “safety and liquidity of their investments in Apex, in light of what Forrest knew and understood from the written offering documents constitutes fraud or deceit within the meaning of California law,” stated Mr. Aidikoff.

According to Mr. Uhl, “The panel found Associated Securities jointly and severally liable for Forrest’s fraudulent conduct in connection with the sale of APEX to the Claimants.” Mr. Uhl added, “The panel found Associated Securities independently liable for the APEX losses Claimants suffered because of its failure to diligently and properly supervise Forrest’s activities.”

“The award represents 100% of the money our clients invested in the APEX hedge fund,” according to Mr. Aidikoff.

If you have any questions concerning this notice, please contact:

Philip M. Aidikoff, paidi@aol.com
Robert A. Uhl, robertauhl@aol.com

Aidikoff, Uhl & Bakhtiari
9454 Wilshire Boulevard, Suite 303
Beverly Hills, California 90212
(310) 274-0666 or Toll Free (800) 382-7969 (national)

www.securitiesarbitration.com

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