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Securities Arbitration

Rich, Intelisano & Katz has an internationally recognized securities arbitration practice which represents retail and institutional investors worldwide against financial firms. Our clients have included ultra high net worth and high net worth individuals, family offices, hedge funds, funds of funds, endowments, non-profits and other institutions in claims against brokerage firms, investment and private banks, investment advisors, hedge funds and other financial companies. Partners John Rich and Ross Intelisano have won two of the nine largest customer arbitration awards ever rendered against Wall Street firms. The Firm has combined experience of almost 100 years in large and complex securities, commodities and derivatives fraud cases on behalf of investors.

Highlights of our partners’ past securities arbitration victories include Bayou v. Goldman Sachs Execution & Clearing: a $20.6 million FINRA arbitration award rendered in June 2010 against Goldman Sachs related to the Bayou hedge fund fraud. The 18-day hearing generated a 100% recovery of compensatory damages requested. It is the largest arbitration award ever rendered against Goldman and the ninth largest customer arbitration award against any Wall Street firm. The award is also the first win in any court or arbitration forum by investors against a clearing or prime broker related to a hedge fund Ponzi scheme based upon fraudulent transfer theories. The award was confirmed by Judge Rakoff of the SDNY in November 2010 and is currently on appeal to the Second Circuit.

In December 2009, we won a $3.4 million arbitration award against Bear Stearns related to the High Grade Structured Credit Strategies hedge funds which blew up in July 2007. It is the first and only reported victory by any High Grade investor and the award was rendered after the criminal acquittals of portfolio managers Ralph Cioffi and Matthew Tannin.

The Firm presently represents a family office in a $383 million FINRA arbitration claim in New York against Citigroup Global Markets Inc. related to Citigroup’s misconduct with respect to the structuring, monitoring and handling of hedge fund and private equity portfolios, and the improper recommendation and implementation of a leveraged option swap transaction and a lender protected unit trust.

The Firm handled a $15 million dispute on behalf of a fuel and heating oil company against an international broker dealer related to the purchase of OTC derivatives, including swaps and options, pursuant to an ISDA agreement. The case was litigated in court in New York as well as in two FINRA arbitrations.

Mr. Rich and Mr. Intelisano pioneered the practice of representing individuals and institutions in group arbitrations related to hedge fund fraud. In 2011, we represented 13 investors from around the world who had lost over $40 million in a group arbitration related to the Bear Stearns High Grade Funds. We successfully represented numerous investors in group claims against investment advisors and banks for failing to do proper due diligence in their recommendation of Bernard Madoff-related feeder funds. Mr. Rich and Mr. Intelisano represented investors who lost over $25 million in the $250 million Bayou hedge fund Ponzi scheme run by convicted fraudster Sam Israel and resolved a multi-million dollar group arbitration against an advisor for failing to do proper due diligence on Bayou.

Mr. Rich and Mr. Intelisano were co-trial counsel in Engel, et al. v. Refco, a commodities Ponzi scheme case at the National Futures Association. The 100-day arbitration on behalf of a group of 13 individuals and family run businesses generated a $43 million award in 2001, which remains the third largest collected arbitration award ever rendered on behalf of public investors against a brokerage firm.

Securities Fraud Attorney Blog - Securities Arbitration
New York Commercial and Construction Lawyer Blog - Arbitration
  • In American International Specialty Lines Insurance Company v. Allied Capital Corporation the New York Court of Appeals wrestles with a simple yet…
Client Reviews
Daniel Katz and his firm are exceptionally knowledgeable about the constantly changing construction business and they have given my company insightful legal advice throughout the years. They have assisted with numerous construction negotiations, claims, and business matters with many satisfactory resolutions. Michael B.
Daniel Katz and his team have always been exemplary, always prepared, always responsive and extremely knowledgeable about construction issues. I cannot imagine better representation. Jim F.
RIK fought hard for me in my FINRA arbitration which resulted in an outstanding result. I will forever be grateful to them. Jeff B.
Ross and his team did a wonderful job representing me in my employment dispute. They were honest, intelligent and hard working. I recommend RIK to all of my colleagues in the financial industry. Steven F.
The theft of pension fund assets by a money manager prompted the Board of Trustee’s investigation into “how did this happen?” John Rich and the Rich, Intelisano & Katz team managed this complex securities litigation matter to fruitful results for our pension fund. Cecelia C., Executive Director