Thursday, 4:30 PM
Former Swampscott selectman faces split verdict in securities case
By Kay Lazar, Globe Staff
Stockbroker Daniel Santanello, a former Swampscott selectman accused of investing his client's money in high-risk technology stocks against her wishes, breached his fiduciary duty and the client's contract, a jury ruled this afternoon in Lawrence Superior Court.
But the jury decided Santanello, 49, did not commit securities fraud or negligent misrepresentation when he invested $70,000 for Shirley Bachini, 44, a Beverly mom and second-grade teacher. The jury awarded Bachini $18,636 in damages, but then reduced it to $1,500, roughly the amount Bachini had lost before complaining to Santanello's bosses at A.G. Edwards.
Bachini's suit accused Santanello of losing $52,000, from June 2000 through August 2002, and sought damages of up to $69,000, plus 12 percent yearly interest. The case was unusual because few customer complaints ever make it to trial. The vast majority of brokerage houses require investors to sign a form agreeing to settle complaints through a private, industry-regulated arbitration process, instead of court.
Santanello, a former vice president of investments at A.G. Edwards in Peabody, left the company in January for a position at Raymond James & Associates in Springfield. He also decided this year not to seek reelection after 18 years on Swampscott's Board of Selectmen.
