Baltimore Panel Awards Retired Pilot $2.7 Million
altimore, Maryland sided with a retired American Airlines pilot and awarded him $2.7 million in damages against Dunham & Associates Investment Counsel, Inc. and American Investors Company. After a five day evidentiary hearing in Baltimore, the FINRA arbitration panel decided that the former pilot's retirement savings should not have been concentrated in two non-publicly traded mortgage funds, the Dunham & Associates Daily Mortgage Fund and The Dunham & Associates Semi-Annual Mortgage Fund, sponsored and managed by Dunham.
The panel ordered: Dunham to pay $1,367,750 in compensatory damages; ordered American to pay $1,020,050 in compensatory damages; ordered American to pay $300,000 in attorneys' fees and $15,000 in costs. Forum fees of $12, 450 were split equally between the parties. (FINRA# 09-05641; Andrew J. Michalak v. American Investors Company, Dunham & Associates Investment Counsel, Inc., Dunham Trust Company, et al)