Nibler

FACTS

In June 2008, looking for an investment opportunity for the approximately $270,000 remaining from an inheritance he received several years earlier, Nibler contacted Monex.1 According to Nibler, he spoke with Antonio Moss, a Monex representative, and explained that he was unemployed and had been for some time. Nibler told Moss he wanted a steady, low-risk investment strategy, and he needed a financial advisor because he had no previous investment experience. Moss encouraged Nibler to open an Atlas Account, under which he could trade precious metals on margin and store the metals at Monex. Instead, Nibler initially purchased $150,000 of gold and silver which he had delivered to him, as he felt this was the safer option.

1As of October 2011, Nibler was 34 years old. Accordingly, he would have been 30 or 31 when he first contacted Monex.

2 Thereafter, Moss “aggressively pursued” Nibler and encouraged him to open an Atlas Account. Nibler later stated that Moss repeatedly told him that large profits would be “virtually guaranteed,” and risk was never discussed. Nibler eventually agreed and opened the Atlas Account. At the time Nibler opened the Atlas Account, he signed two…