Jury Must Hear Brookstreet Brokers Fraud Suit: Judge

Law360, New York (September 19, 2011, 4:13 PM EDT) -- A Florida federal judge on Monday said a jury should determine the liability of two former Brookstreet Securities Corp. brokers in an alleged fraud that cost investors — mainly, retirees — millions of dollars.

In two separate denials of summary judgment motions lodged by the U.S. Securities and Exchange Commission, U.S. District Judge Kenneth Marra said the commission failed to show that Troy L. Gagliardi and Steven I. Shrago had demonstrated “severe recklessness” when they sold risky collateralized mortgage obligations, or CMOs, to investors between 2004...
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