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TEDESCHI v. SMITH BARNEY, HARRIS UPHAM & CO., INC.

No. 81 Civ. 6938.

579 F.Supp. 657 (1984)

Anthony W. TEDESCHI and Lois Tedeschi, Plaintiffs, v. SMITH BARNEY, HARRIS UPHAM & CO., INC., Martin S. Berglas and John Maine, Defendants.

United States District Court, S.D. New York.

January 17, 1984.

Attorney(s) appearing for the Case

Merrill J. Chapman, New York City, for plaintiffs.

Kramer, Coleman & Rhine, New York City, for defendants; Howard I. Rhine, New York City, of counsel.

OPINION

EDWARD WEINFELD, District Judge.

This action was the aftermath of an arbitration proceeding, the parties to which were Anthony W. Tedeschi ("Tedeschi"), a registered broker, and his former employer, Smith Barney, Harris Upham & Co., Inc., an investment broker. The basic issue submitted to the arbitrators was whether Tedeschi, as the account executive servicing the account of a customer knew or should have known, and failed to report,

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