Breach of Contract and Warranties, Promissory Estoppel. Violation of Securities Statutes, Brach of Fiduciary Duty; Claims under Common Law (intentional and negligent misrepresentation of material fact), Vicarious Liability

$100,000.00

Breach of fiduciary duty, Breach of Written Contract and of the implied covenants of good faith and fair dealing. Unauthorized trading and/or exercise of discretion without written authorization. Failure to supervise and control. Elder financial abuse and violation of state and federal security laws. Control person liability.

$300,000.00

$150,000.00

Unsuitable Investment

$350,000.00

Breach of Fiduciary duty Breach of written contract and of the implied covenant of Good Faith and Fair Dealing. Unauthorized Trading and/or Exercise of discretion without Written authorization Failure to Supervise & Control Elder Financial Abuse Violation of FINRA Rules of Fair Practice Control Person Liability

$400,000.00

$199,000.00

FINRA

Without admitting or denying the findings, Cowden consented to the sanction and to the entry of findings that she recommended unsuitable high risk, speculative investments to three senior customers, including a married couple and one other investor. The findings stated that the first customers' investment objective included a stable, balanced portfolio, as well as income and liquidity, because they were relying on the investment to supplement their income. Cowden recommended purchases for the couple, totaling $231,200 of an illiquid, high risk, non-traded REIT. The investments were not suitable given the couple's investment objective, circumstances, and financial needs. The investment's illiquidity and high risk level also far exceeded the couple's moderate risk tolerance. The third customer's investment objective included slow growth and a reasonable rate of return, and liquidity. Cowden recommended that the customer purchase $250,000 of a speculative, high risk, illiquid, closed-ended mutual fund. The investment was not suitable given the customer's investment objective, circumstances, and financial needs. In addition, the $250,000 investment comprised an unsuitable concentration of over 50% of the customer's net worth. The investment's illiquidity and high risk level also far exceeded the customer's low to moderate risk tolerance. The findings also stated that Cowden provided false testimony to FINRA regarding the customers' assets and income. Specifically, Cowden falsely testified that the three customers' assets and income were far in excess of the actual amounts.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

all capacities

indefinite

10/21/2020

Client alleges negligence, suitability, negligent misrepresentation and omission; intentional misrepresentation and omission; fraud; violation of California securities laws. Control person liability; breach of fiduciary duty; failure to supervise; unsuitability; over concentration, breach of FINRA rules; breach of contract; loss of investment opportunity; and financial elder abuse.

$80,589.00

$57,000.00

MISREPRESENTATION, RECOMMENDATION OF UNSUITABLE INVESTMENT, BREACH OF CONTRACT

$389,000.00

$163,500.00

SERVED PAPERS 9/21/2006, 7 DEFENDANTS NAMED. DECLATORY RELIEF RE-TITLE. CONVERSION, NEGLIGENCE, 5 BREACHES OF FIDUCIARY DUTY, FINANCIAL ELDER ABUSE, TORTIOUS INTERFERENCE WITH RIGHT TO INHERIT, FRAUD AND DECIPT.

$80,000.00