Wedbush To Pay Former Broker $4.3M Over Sour MBS

Law360, New York (September 26, 2013, 5:48 PM EDT) -- Wedbush Securities Inc. has to pay one of its former brokers nearly $4.3 million in lost income and attorneys' fees after an arbitration panel ruled Wednesday that the broker had lost clients due to the California firm's misrepresentation of certain mortgage-backed securities.

Ex-Wedbush broker Michael Farah won a lengthy battle on Wednesday against his former employer over risky collateralized mortgage obligations, which the firm allegedly touted as safe investments and encouraged him to sell but eventually tanked, according to arbitration filings.

A Financial Industry Regulatory Authority...
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