LV investors allege mismanagement

Tuesday, Jan. 23, 2001 | 10:39 a.m.

Two lawsuits alleging investment mismanagement have been filed against Painewebber Inc. and three of its financial advisors in Clark County District Court.

A Las Vegas man sued the brokerage and a consultant, John Ebanietti, alleging he lost potential profits because they failed to follow his instructions to buy a certain stock.

John Ferraro, who said he instructed Ebanietti on Oct. 26, 1999, to sell his stocks of Munder Netnet Fund and to buy shares of IMDS, alleged Ebanietti sold the Munder Fund shares but failed to buy the IMDS stock.

Separately, a Las Vegas couple sued Painewebber, its accountant, Patrick Carabine and a retirement counsellor, Walter Keating, alleging they were penalized by the Internal Revenue Service because the defendants repeatedly failed to follow their instructions to timely pay $70,000 in fourth-quarter 1999 tax deposits.

Jennings R. and Rebecca Arnce, who said they opened a retirement account in 1996 with their life savings and claimed the defendants said they would "go the extra mile to resolve every inquiry and complaint quickly and efficiently," said they feared the IRS may impose tax liens on their property.

The defendants could not be reached for comment.