Harrison v. Dean Whitter Reynolds, Inc., 79 F.3d 609 (1996)

Harrison v. Dean Whitter Reynolds, Inc.


Kenning and Carpenter worked for Dean Witter Reynolds. They told over 100 clients (including Plaintiff Henderson) that, as Dean Witter employees, they had access to discounted municipal bonds and would buy them on behalf of "special customers." The "special customers" would pay Kenning or Carpenter directly, who would issue promissory notes in return. In fact, Kenning was using the money to fund his own trading. Kenning's manager and Dean Witter's compliance department apparently turned a blind eye to the suspicious account activity in Kenning and Carpenter's personal accounts because it was generating substantial commissions for the company. Harrison was awarded a judgment against Dean Whitter. Dean Witter appealed, claiming because they had compliance rules and procedures, and neither directly nor indirectly induced the acts, they should not be liable for Henderson's losses.

Full case and case summary are also available at: http://www.mlmlegal.com/legal-cases/Harrison_v_DeanWhitterReynoldsInc.php

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:Federal, 7th Circuit, Indiana | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Written by:


Babener & Associates on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.