Credit Suisse Ordered to Pay Back $1.2 Million on "Unsuitable Risky" Investment Deal

Via Reuters:

NASD orders Credit Suisse to pay couple $1.2 mln

February 13, 2006
Reuters

An NASD arbitration panel has ordered a unit of Credit Suisse Group to pay $1.2 million to a retired couple for putting their assets in unsuitably risky stock investments, the couple's law firm said on Monday.

The law firm, Carlson & Lewittes, said in a statement that the panel found Donaldson, Lufkin & Jenrette, now a unit of Credit Suisse, liable for negligence, making unsuitable investments, and failing to adequately supervise employees.

DLJ liquidated Rafael and Corina Montalvo's bond portfolio in 1999 and put the proceeds in aggressive proprietary managed accounts, a discretionary account managed by the branch manager for a DLJ office in Miami, and hedge funds, the law firm said.

The $1.2 million represents compensatory damages, Carlson & Lewittes said.
A spokesman for Credit Suisse was not immediately available.

The original article appears here.

-- MDT