A Port Arthur man has filed suit against several investment companies and a broker, alleging they did not properly invest his money.
Through a broker, plaintiff Lee G. Chandler opened an investment account with A.G. Edwards & Sons, Wachovia and Wells Fargo, on April 26, 2007. His principal investment was $800,000.
When he invested his money, Chandler wanted it to be entered into conservative, safe investments so he could earn interest, according to the complaint filed April 14 in Jefferson County District Court.
He was hoping to use the invested funds to earn more money without risking his principal.
According to the complaint, the defendants and their broker, Susan Ramsdell, were "sophisticated" investors, while Chandler had very limited investment experience and was dependent on Ramsdell to make investment decisions for him.
"When he opened his account with Defendants, he put his complete faith and trust with those he believed were responsible, trained professionals," the suit states.
But Ramsdell and the companies misrepresented their capabilities and intentions with the assets Chandler entrusted to them and the risks involved in the investments, according to the complaint.
Although Chandler does not specify how much money he lost, he is suing for breach of contract. He claims the defendant companies and Ramsdell violated provisions of Texas securities statutes and a section of the Texas Business and Commerce Code.
Chandler is seeking all sums lost in the account, all lost opportunities, recession of any transactions, plus unspecified statutory and punitive damages, pre-judgment interest at the highest rate allowed by law, costs and other relief to which he may be entitled.
He is represented by Gibert T. Adams of the Law Offices of Gilbert T. Adams in Beaumont.
The case has been assigned to Judge Bob Wortham, 58th District Court.
Jefferson County District Court case number: A183-773.