A Bloomington veterinarian is entitled to $5.6 million in damages and interest from RBC Financial for investing her inheritance a decade ago in since-bankrupt WorldCom and Level 3 Communications—two high-flying companies that crashed when the technology bubble burst in 2001-2002.
The amount represents one of the larger arbitration awards on behalf of a Minnesotan ever made by the Financial Industry Regulatory Authority and is also interesting for another reason: The woman’s broker was her husband.
According to documents and people familiar with the case, Dr. Katherine Knutson received more than $5 million from her father in 1999-2000. About 90 percent of the funds were invested in WorldCom and Level 3, then selling at astronomical prices thanks to the euphoria over the Internet and telecommunications.
Dan Knutson, the former broker, supervised his wife’s account. The couple since has divorced.
For more, see
http://www.startribune.com/business/41184427.html?elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aUU
