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A.G. Edwards to pay 3 investors for losses
By Times Staff Writer
Published March 31, 2005
Three Pasco County investors who wanted investments that were safe and provided income but got a high-risk portfolio have won arbitration awards against A.G. Edwards & Sons for its handling of their money.
Arbitration panels for the National Association of Securities Dealers awarded $74,661 to Louis Hosek and $25,000 to Louis and Ellen Savoldy, plus costs and attorneys' fees.
Clearwater lawyer Patrick Davis said the three had no investment experience when they opened accounts at A.G. Edwards' Port Richey office in 2000. On broker Richard Velten's advice, they put their money in a technology fund and ended up with substantial losses.
The arbitration panels agreed with the investors' claims of investment unsuitability and securities law violations against Velten and A.G. Edwards. One panel also held branch manager Ronald May responsible, but the other found in his favor.
A.G. Edwards said it disagreed with the decisions but was "pleased to put the matter behind us." May said he disagreed with the finding against him, which he said was the first in 27 years in the business. Velten no longer works as a broker and could not be reached for comment.
[Last modified March 31, 2005, 01:27:20]
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