National Planning Ordered to Pay $6.2M in Arbitration Award

National Planning Corp. (NPC), a leading independent broker-dealer and a subsidiary of National Planning Holdings, Inc., a network of four broker-dealers affiliated with Jackson National Life Insurance Co., was ordered to pay $6.2 million in arbitration award to Minnesota investors Ronnie and Stacy Erickson over a real estate investments trust dispute.

The award issued on November 18, 2013 was rendered by a three-arbitrator Financial Industry Regulatory Authority Inc. (FINRA) dispute resolution panel.

The Ericksons, on behalf of their trusts, filed the complaint on February 2012 and sought $12.5 million in compensation. They claimed that NPC and a former brokerChristopher R. Olson, breached their fiduciary duty, were negligent, made misrepresentations, and violated other industry rules.

The Ericksons alleged that Olson tricked them into assuming significant debt, paying millions of dollars in cash that cannot be recovered, and liquidating, annuitizing and structuring their investment assets saved for retirement to pay the staggering debt obligations related to their broker’s real estate investment recommendations, according to the FINRA award.

The FINRA ruling did not disclose the names of the REITs in which the Erickson’s invested in.

Preferred Resource Group was also mentioned in the complaint but was not held liable for the award, according to the FINRA decision.

The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud or misconduct. They are currently investigating the possibility of assisting the victims with the recovery of their investment. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at (585) 310-5140.

Peiffer Wolf (1248 Posts)


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