Buehler

ORDER CONFIRMING ARBITRATION AWARD AS TO PETITIONERS SERUYA, GANZ AND BEAR STEARNS AND REQUESTING FURTHER BRIEFING REGARDING LIABILITY OF PETITIONERS ACKERMAN AND BSSC

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD:

I. Background

Respondents are individuals who invested their money with Robert Schmidt (“Schmidt”), an investment advisor. Schmidt was an investment advisor who owned and ran a company called International Management Services (“IMS”). While there were a couple of other people who owned stock in IMS, they did not get involved with its operations, leaving Schmidt alone at the helm. Schmidt opened an account in IMS’s name at petitioner Bear, Stearns & Co. (“Bear Stearns”), a brokerage house.

As it turned out, Schmidt was a thief and stole approximately $7 million of the respondents’ money. Schmidt is now in jail serving a ten year sentence for embezzlement. Respondents brought an action against Bear Stearns & Company (“Bear Stearns”), Bear Sterns Security Corporation (“BSSC”), and several individuals who worked at Bear Sterns: Stephen Acker-man (“Ackerman”), Barry Ganz (“Ganz”),. and “Mark Seruya.” All parties agreed to binding arbitration. Thereafter, a lengthy…