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Ex-stockbroker to pay $165K in damages

He enriched himself by making poor investments with a client's money, a 2000 lawsuit charged.

By JAMAL THALJI
Published July 22, 2006

NEW PORT RICHEY - The ex-stockbroker defending himself in court this week from charges he wiped out $78,000 of a teacher's investments told jurors Thursday what he wants from them.

"Here's my goal: I'm going to walk out of here without a scratch," Edward Caplinger said. "That's what I want."

That's not what the jury wanted.

They found for the plaintiff late Thursday, and now the 62-year-old Caplinger is on the hook for $165,000 in damages. That could be tripled, too, since punitive damages were also awarded.

Jurors decided that the ex-broker breached his fiduciary duty and mismanaged Land O'Lakes High School teacher Karen Renberg's six-figure investment.

At the height of the dot-com boom, Caplinger deliberately made poor investments, the 2000 lawsuit says, that enriched himself but left Renberg, 58, losing money and paying taxes and penalties.

The defendant struggled to defend himself. He argued that he spelled out the risks to his client and doesn't have to follow the rules of the industry regulator, the National Association of Securities Dealers, because he's not a member.

Caplinger, who has no law degree, told jurors he trusted no one else to represent him.

"I'm the only one who knows what happened," he said, "and I'm definitely the only one who understands what happened."

Caplinger isn't a member of the NASD because in 1991 the state revoked his securities licenses for "false representations" and fined him $10,000. At the start of the trial Caplinger disputed that, but during his closing Thursday let it slip that, yes, they were revoked.

He could not be reached for comment afterward.

For attorney Robert Persante it was the end of a six-year legal battle to try and recoup Renberg's losses. He said Caplinger thwarted and delayed the lawsuit at every turn. It became personal, the lawyer admitted.

"I was angry at the way he was operating and at his arrogance," Persante said, "and I was going to see it through no matter what."

His job's not done yet, though. Caplinger may also have to pay Persante's six-figure fee - but the lawyer isn't sure what, if any, they can collect.

"He advised the court that he is not in good financial shape," Persante said of Caplinger.

Does he expect another battle?

"Yes I do," the lawyer said.

[Last modified July 21, 2006, 22:33:32]