Attorney Christopher Brian Wells's Legal Cases

Securities and investment fraud

Gig Harbor Family Trust et al. v. Columbia Valuation Group, Inc. et al; King County Cause No. 13-2-04399-8 SEA:

Oct 29, 2014

OUTCOME: After a trial that lasted more than two weeks, the jury favorably answered the 14-page verdict form in less than two hours, dismissing all claims against our client.

Teamed with partner to take over defense of an appraiser just before trial who had been sued for negligent misrepresentation and violations of the state securities and consumer protection acts. He had ... appraised an office building that served as collateral for a loan. The loan/trust deed was fractionalized and sold to investors by a "hard money lender." The borrower defaulted in 2009 and a receiver took over the failed lender in 2010. In the suit, 18 investors claimed they were led to invest because of an inflated appraisal and lost over $1.5 million after the office building was sold. The investor-plaintiffs were represented by a Fellow in the American College of Trial lawyers with ample recognition by other rating sources.

Securities and investment fraud

Garrison Family LLC v. Wells Fargo Investments LLC

Apr 27, 2012

OUTCOME: Claims Denied in Entirety

FINRA Case No. 10-05313. Won dismissal of $26 million FINRA arbitration case defending major broker-dealer, nationally recognized financial advisor and highly capable sales assistant. Claimants were a ... family LLC and six trusts that held the fortune amassed by the founder of a successful business. With his mental capacity declining, the 90-year old founder replaced himself as LLC manager and trustee with his grandson, who was the primary beneficiary and a registered investment advisor who also held securities sales and principal’s licenses with another firm. For years prior to the change in control, our clients had recommended portfolios of laddered, investment grade bonds. The grandson liquidated the bond portfolios and pursued an unsolicited and highly risky investment strategy, losing the entire $26 million fortune in 2008. The claimants alleged that our clients were obligated to intervene and halt the grandson’s risky trading in view of the amount of commission income being generated by the new strategy, the hazards to the founder’s interest and the implication of “elder abuse” by the grandson. We showed that our clients were faithfully executing unsolicited orders and reasonably believed the claimants’ accountant and attorney were involved, and the accounts were to be supervised by the firm with which the LLC manager/trustee was licensed. The panel denied the claims in their entirety.

Securities and investment fraud

Credit Suisse Securities et al. v. Simmonds

Apr 05, 2012

OUTCOME: Supreme Court confirmed our position and remanded

SCOTUS No. 12-691. Participated in briefing and attended oral argument by lead counsel in U.S. Supreme Court case in which the Court adopted our clients’ argument on the statute of limitations in Secti ... on 16(b) of the Securities Act of 1934, covering “short swing” profits. The primary ground asserted by our underwriter group was that the two-year statute of limitations had started to run on the dates of the alleged short swing profit transactions — between 1998 and 2000. Plaintiff argued that our clients, their key customers and the directors and officers of IPO issuers had acted as a group in each offering, obligating them to file a Section 16(a) 10 percent beneficial ownership report, notwithstanding an exemption for underwriters. Plaintiff relied on a Ninth Circuit opinion holding that the statute of limitations in 16(b) was not triggered until a 10 percent beneficial ownership report had been filed under Section 16(a). No such report had been filed. The Supreme Court reversed, adhering to the district court’s view — in the case described below — that the limitations period could be equitably tolled, but that extensive publicity surrounding multi-district class actions around 2002 would preclude equitable tolling.

Securities and investment fraud

In the Matter of Erez Bahar, et al.

Jun 27, 2011

OUTCOME: More favorable than regulators demand

SEC Administrative Proceeding No. 3-13997. Defended Chartered Accountant in SEC Rule 102(e) administrative proceeding seeking suspension of public accounting practice before the Commission for three ye ... ars or more. The accountant had assumed the role of a “manager” doing field work in the audit of a U.S. public company and was supervised by a U.S. accounting firm subject to the PCAOB. The U.S. firm audit partners agreed to three-year suspensions and other relief. Although we could not procure expert testimony that auditing standards had been met, we were able to limit the suspension to two years.

Securities and investment fraud

Sleight v. Centaurus Financial, Inc.

Jan 07, 2011

OUTCOME: Award was one half of adversay settlement demand

FINRA Case No. 10-00536. Defended securities broker-dealer in case brought by elderly couple represented by premier national “selling away” counsel after securities regulators had permanently suspended ... former representative terminated by firm. Client firm refused to meet settlement demand that was nearly twice what client firm was willing to pay. Award was almost exactly as predicted, and little more than half the claimants’ last settlement demand.

Securities and investment fraud

Sharebuilder Securities Corporation v. NYSE Arca Equities, Inc.

Jul 13, 2010

OUTCOME: Dismissal

Assisted in defending the New York Stock Exchange (“NYSE Arca”) in a case brought in federal district court in Seattle. Served as co-counsel to NYSE Arca’s primary outside counsel, Milbank Tweed. Plain ... tiff alleged damages resulting from payments it made to reimburse customers who claimed to have lost money on trades induced by a stock price that was allegedly — but never actually — reported on the NYSE Arca electronic exchange and was far below the usual trading range for that stock. NYSE Arca filed a motion to dismiss on various grounds, including immunity accorded regulatory organizations. Immediately after our co-counsel’s oral argument on July 13, the court dismissed the complaint against NYSE Arca with prejudice on several grounds.

Litigation

Neves v. Chase Investment Services Corp.

Jul 12, 2010

OUTCOME: Dismissal of all claims, expungement of complaint from representative's record and partial attorney fee recovery of $50,000 from customer.

FINRA Case No. 08-04540. Defended securities brokerage firm in arbitration brought by customer alleging $1.2 million in account losses and $3.5 million in consequential damages. Customer alleged unsuit ... able recommendations of variable annuities and notes issued by financial institutions. Obtained award dismissing all claims, expunging complaint from representative's record and awarding client partial attorney fee recovery of $50,000 against customer.

Securities and investment fraud

In re 16(b) Litigation

Mar 12, 2009

OUTCOME: Cases were dismissed

No. C07-1549JLR (USDC, WDWA). Served as local counsel and participated in strategy and brief writing for ten investment bank-underwriters sued in 54 cases seeking hundreds of millions of dollars to be ... disgorged as short swing profits from issuers and underwriters in IPOs from 1998-2001. Cases were coordinated, omnibus motions to dismiss were filed by underwriters and issuers based on limitations period expiring and other grounds. Cases were dismissed on March 12, 2009 due to expired limitations period and inadequate demand upon issuer defendants.

Discrimination

Johnson v Dean Witter Reynolds

N/A

OUTCOME: All claims dismissed

Defended brokerage firm, local branch manager and chief in-house attorney for Western Region who signed licensing form in $2 million arbitration for constructive discharge, defamation and race discri ... mination. Obtained no liability dismissal and was appointed ouside counsel for northwest region.

Securities and investment fraud

Federal Home Loan Bank of Seattle v. Morgan Stanley & Co., Inc. et al.

N/A

OUTCOME: Ongoing

Co-counsel with a national law firm in defense of underwriter of several collateralized debt obligations of roughly $100 million each in cases brought by the Federal Home Loan bank of Seattle alleging ... securities fraud under Washington State Securities Act.

Christopher Brian Wells's Legal Cases (19)

Gig Harbor Family Trust et al. v. Columbia Valuation Group, Inc. et al; King County Cause No. 13-2-04399-8 SEA:

Garrison Family LLC v. Wells Fargo Investments LLC

Credit Suisse Securities et al. v. Simmonds

In the Matter of Erez Bahar, et al.

Sleight v. Centaurus Financial, Inc.

Sharebuilder Securities Corporation v. NYSE Arca Equities, Inc.

Neves v. Chase Investment Services Corp.

In re 16(b) Litigation

Johnson v Dean Witter Reynolds

Federal Home Loan Bank of Seattle v. Morgan Stanley & Co., Inc. et al.