An arbitration panel has ruled that brokerages Carlin Equities and affiliate Generic Trading of Philadelphia must pay $3.7 million to investors who were defrauded by a former stockbroker who worked for the firms. According to The New York Post, the broker, Frank Marone, who at another time worked at Merrill Lynch, allegedly defrauded fellow members of a Windham Mountain ski rescue team in a Ponzi scheme, in which he scooped up some $4.7 million and spent personally. The firms say they are going to appeal the ruling since the actions involved only Marone and not the firms, but the panel appeared to agree with the argument that the brokerages were aware of his checkered “checkered past,” according to a member of the patrol, and failed to supervise him properly.
