Court Ruling Tightens Investors' Safety Net

Thursday, July 24, 2008; Page D02 A recent decision by a federal appellate court goes a long way to protect investors. The U.S. Court of Appeals for the District of Columbia reversed a lower court that had ruled a stockbroker could have a customer's complaint purged from his record. At its core, this case -- Karsner v. Lothian-- is about transparency. With so much emphasis on the need for people to save and invest, the regulatory safety nets designed to protect investors from unethical and unscrupulous brokers and advisers shouldn't be compromised. The appeal arose when Melanie Lubin, the Maryland securities commissioner, sought to oppose a stockbroker's attempt to obliterate an arbitration case from his state licensing record. The case involved a Maryland mutual fund broker who, according to court documents, allegedly put an... [read full story]