A three-member arbitration panel of the National Association of Securities Dealers has ruled IFG Network Securities, an Atlanta-based subsidiary of Dutch-owned ING Group, must pay Rau L. King, a Brevard County widow, $59,000 after one of the company's brokers sold King and her late husband, Rex King, an unregistered US government, mortgage-backed securities.
The Kings had invested a total $45,800 in the alleged fraudulent fund, according to filed court documents. The Oct. 14 NASD ruling includes $13,200 in interest on the $45,800. IFG was also ordered to pay $6,200 in court costs. A bankruptcy court judge will rule later whether IFG has to pay an additional $100,000 in legal fees
IFG has 30 days to pay the customer or appeal the NASD ruling. IFG officials couldn't be reached by GlobeSt.com's publication deadline.
According to court documents, the Kings had invested their money with Anthony V. Micciche, a registered represented of IFG. Micciche, 74, was convicted in US District Court in Orlando last year of selling unregistered securities and is serving a 15-month prison term.
Cuthill, the bankruptcy court's trustee, is trying to recover the first $10 million of the estimated $175 million in claims filed by former Evergreen customers. When he finds part of the money, Cuthill plans to ask the court for permission to distribute the funds to some of Evergreen's former 2,203 global investors, he says in court filings. Cuthill, who represents the investors, is suing 76 brokers and 15 companies.
So far, according to court filings, 12 individuals have been convicted and eight companies have settled charges against them in the case that broke on Jan. 3, 2001 after Evergreen filed for voluntary protection under Chapter 11 of the US Bankruptcy Code.
The Boston-based Evergreen Investments family of mutual funds, owned by Wachovia Corp. of Winston-Salem, NC, is not associated or related to Evergreen Security Ltd.
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