According to the complaint, most of the couple’s money lost by Schoner — a First Republic senior managing director and wealth manager — was held in a fund that provided scholarships and support for underserved transfer students to attend the University of California, Berkeley.
Claims of Non-Disclosure and Risk Management
Miller and McKinley also claimed that the defendants never disclosed the risks of the investments, including those that ultimately led to First Republic’s failure. They argued that Schoner’s mismanagement directly contributed to their substantial financial losses.
First Republic $7M Settlement : Arbitration and Further Actions
Last August, the couple alerted the court that they were voluntarily dismissing their claims against Schoner to refile and have them addressed in arbitration before the Financial Industry Regulatory Authority (FINRA). This strategic move aimed to resolve their grievances more effectively through arbitration.
The $7 million settlement highlights the significant impact of First Republic Bank’s failure and the fiduciary responsibilities financial managers hold towards their clients.
