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In a case allegedly involving stolen stock, Wachovia Securities LLC was hammered in a recent arbitration loss and ordered to pay clients $5.3 million in damages.

An award of that size is a huge win for investors, attorneys said.

The case, which was decided July 30, centered on allegations that Wachovia of St. Louis “accepted forged requests” to transfer shares that two clients owned in Devin Energy Corp. stock, according to the award

Wachovia Should Have Known

The clients, Ira Mike Patton and Gayle Patton, also alleged that Wachovia “should have known the transfer requests were not authentic” and that Wachovia “has not accounted for all the missing shares.”

A spokeswoman for Wachovia, Teresa Docherty, said the firm declined to comment.

Pattons Requested $9.7 Million in Damages

As part of the award, the three arbitrators on a panel convened by the Financial Industry Regulatory Authority Inc. of New York and Washington ordered Wachovia to pay Ms. Patton $100,000 in punitive damages. In addition, the arbitrators said Wachovia needs to pay 9% interest on the award until it is paid in full.

Guiliano Law Group

Our practice is limited to the representation of investors in claims, for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.