Following an internal agreement between the two brokers to divide commissions, Mr. In October 2008 the client's family sought out the assistance of their broker, David Dworsky, who was based in the New York city branch and was referred by him to a fellow broker, Martin Askowitz, who was known as the branch's options expert. The client was suffering from Dementia in 2007 and all trading in the account ceased and remained dormant from 2007 up until October 2008, when the client's wife and daughter sought assistance, as the account collapsed without anyone managing the account, and as the brokerage firm failed to contact the family to recommend any hedging strategies, such as a European or OTC Collar, which would have protected the account. The employment was the originating source of the stock at issue in the Claim. As asserted in the Claim, the Meissner firm's 85 year old client was formerly a highly sophisticated investor, having been a Regional Director in the former Shearson Lehman/American Express up until his retirement in the 1980s. The focus of the claim was the failure of Morgan Stanley Smith Barney (NYSE:MS) and its predecessor firm Smith Barney to properly protect a large over-concentrated position in American Express stock, which account contained a substantial margin balance, the failure to recommend proper hedging strategies, unsuitability and the inept implementation of options transactions, as well as unauthorized trading commencing in October 2008, coinciding with the financial collapse of 2008.
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