Blum & Silver, LLP and Sallah & Cox, LLC Announce FINRA Arbitration Panel Hits Broker for $7 Million in Fraud Case

Boca Raton, Florida, UNITED STATES

BOCA RATON, Fla., Sept. 3, 2009 (GLOBE NEWSWIRE) -- The securities law firms Blum & Silver, LLP ( and Sallah & Cox, LLC ( announced today that they have won one of the largest arbitration awards ever against an individual broker. A FINRA panel awarded a group of investors over $7 million, including more than $4 million in punitive damages, against Gary J. Gross based upon what the panel found to be Gross' "willful and wanton" conduct in "flagrant disregard" of the investors rights. The lengthy 61-page award details Gross' misconduct in connection with dozens of victims -- many of whom were elderly -- saying Gross created false and misleading statements while engaging in churning, unauthorized trading, unauthorized use of margin, and a host of other sales practice violations. Many of the victims lost their life savings.

Gross' misconduct was first featured in a 2008 front-page Miami Herald article, which also detailed the State of Florida's failure to act on complaints for years against the Boca Raton broker. The case gained national attention as the April 2008 cover story of Registered Rep magazine entitled: "Failure Chain: Consider the Curious and Rather Grotesque Case of Gary J. Gross."

In September 2008, the U.S. Securities and Exchange Commission's enforcement division sued Gross for fraud in federal court for his conduct relating to many of the victims named in the award-winning arbitration. In a major speech before a national senior citizens' group that same month, then SEC Chairman Christopher Cox singled out the Gary Gross case in a speech entitled "Protecting Senior Investors in Today's Market." Gross consented to the entry of a permanent injunction in the SEC case, which included a bar preventing Gross from ever working in the securities industry until he satisfies any and all FINRA arbitration awards against him.

This case highlights the ongoing problem of trusted financial advisors selling investments not approved by their brokerage firms through gross misrepresentations and lack of supervision. Blum & Silver, LLP and Sallah & Cox, LLC urge victims of financial misconduct to contact them to learn more about their legal rights.

For additional information or to further discuss these matters, investors should contact either:

 Scott L. Silver, Esq.               James D. Sallah, Esq.
 Blum & Silver, LLP                  Sallah & Cox, LLC
 1-877-STOCK LAW (1-877-786-2552)    1-888-SEC- ATTY (1-888-732-2889)    

Blum & Silver, LLP is a nationally-recognized securities law firm headquartered in South Florida, with a satellite office in New York, representing investors worldwide with their claims for losses due to stockbroker misconduct and brokerage firm negligence in securities litigation and arbitration matters. The firm has successfully recovered multi-million dollar awards for its clients against many of the country's top brokerage houses.

Sallah & Cox, LLC is located in Boca Raton, Florida. The firm consists of former Senior SEC Enforcement attorneys who represent clients throughout the United States and Latin America in stockbroker misconduct and investment fraud cases. This firm has represented investors against most major Wall Street brokerage firms in claims involving stocks, options, auction rate securities, hedge funds, mutual funds, and bonds.

Blum & Silver, LLP's and Sallah & Cox, LLC's attorneys frequently work together on a co-counsel basis. Our lawyers speak English and Spanish, and they are licensed to practice law in Florida, California, Colorado, New York and New Jersey.


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