Representing multiple families, the Ponist Law Group alleged that a rogue broker of a securities broker-dealer, charged with managing the accounts of their clients, improperly churned the clients’ accounts, excessively traded the clients’ accounts and placed the clients in unsuitable investments. The Ponist Law Group was able to successfully negotiate a settlement for $2.2 million on behalf of their clients.
Ponist Law Group Defeats $20+ Million California Attorney General Enforcement Case
December 25, 2025
After a three-year investigation, the California Attorney General’s Office filed a sweeping civil enforcement action against a nonprofit organization, its directors, and affiliated companies that supported the charity’s operations. The complaint alleged serious claims, including breach of fiduciary duty, self-dealing, diversion of charitable assets, and misrepresentation. The Attorney General sought more than $20 million in restitution, fines, and penalties, along with over $2 million in purportedly “mandatory” attorney’s fees.
Following five years of hard-fought litigation and a three-month trial, the Ponist Law Group secured a defense verdict on every substantive claim. The only issue on which the Attorney General prevailed involved record-keeping deficiencies.
The outcome was decisive. Instead of the more than $20 million sought, the court awarded just $14,000 in fines and penalties. Instead of over $2 million in attorney’s fees, the court awarded $35,800.
