Securities Arbitration and Financial Fraud Litigation

Rich, Intelisano & Katz (“RIK”) represents retail and institutional investors worldwide in securities arbitration and litigation against financial firms. Our clients have included ultra-high net worth and high net worth individuals, public and private companies, family offices, hedge funds, funds of funds, endowments, non-profits and other institutions in claims against brokerage firms, investment and private banks, investment advisors, hedge funds and other financial companies. Our partners have won two of the largest customer arbitration awards ever rendered against Wall Street firms. The Firm has combined experience of almost 100 years in large and complex securities, commodities and derivatives fraud cases on behalf of investors. We provide aggressive representation and creative advice often across the table from the world's largest law firms.

Highlights of our partners’ past financial fraud victories include Bayou v. Goldman Sachs Execution & Clearing: a $20.6 million FINRA arbitration award rendered against Goldman Sachs related to the Bayou hedge fund fraud. The 18-day hearing generated a 100% recovery of compensatory damages requested. It is the largest arbitration award ever rendered against Goldman. The award is also the first win in any court or arbitration forum by investors against a clearing or prime broker related to a hedge fund Ponzi scheme based upon fraudulent transfer theories. The award was confirmed by Judge Rakoff of the SDNY and the Second Circuit.

Mr. Rich and Mr. Intelisano were co-trial counsel in Engel, et al. v. Refco, a commodities Ponzi scheme case at the National Futures Association. The 100-day arbitration on behalf of a group of 13 individuals and family run businesses generated a $43 million award in 2001, which at the time was the largest collected arbitration award ever rendered on behalf of public customers against a brokerage firm.

In September 2022, the Firm won a $5.2 million FINRA award on behalf of a Florida couple against UBS regarding the YES options strategy. The result represented a 95% recovery and was the largest award to date of the approximate 35 arbitrations tried by investors against UBS related to YES.

In 2016, RIK won $10 million in damages for an upstate New York family and defeated a $6 million counterclaim related to a customer debit in a FINRA arbitration award against a clearing firm for its actions related to an RIA. The Montfort v. CL King award, after 44 days of arbitration hearings, was confirmed in court and paid in full.

In December 2009, we won a $3.4 million arbitration award against Bear Stearns related to the High Grade Structured Credit Strategies hedge funds which blew up in July 2007. It was the first and only reported victory by any High Grade investor and the award was rendered after the criminal acquittals of portfolio managers Ralph Cioffi and Matthew Tannin.

The Firm handled a $15 million dispute on behalf of a fuel and heating oil company against an international broker dealer related to the purchase of OTC derivatives, including swaps and options, pursuant to an ISDA agreement. The case was litigated in court in New York as well as in two FINRA arbitrations.

Mr. Rich and Mr. Intelisano pioneered the practice of representing individuals and institutions in group arbitrations related to hedge fund fraud. We represented 13 investors from around the world who had lost over $40 million in a group arbitration related to the Bear Stearns High Grade Funds. We successfully represented numerous investors in group claims against investment advisors and banks for failing to do proper due diligence in their recommendation of Bernard Madoff-related feeder funds. We also represented investors who lost over $25 million in the $250 million Bayou hedge fund Ponzi scheme run by convicted fraudster Sam Israel and resolved a multi-million dollar group arbitration against an advisor for failing to do proper due diligence on Bayou.