Couple suing investment advisor for losing hundreds of thousands of dollars for them

Stephen David and his wife Linda sold a business and had $1 million from the sale to carry them through retirement and pay for college for their youngest child. They put their $1 million plus $500,000 of savings to work with investment broker Charles Moni, hoping to get about $150,000 a year out of their account. That would have meant they needed a 10% a year return on their money, yet they wanted to be conservative in their investments.

The investment account started losing money right away, and the Davises complained to the broker, who told them they'd regain their value. They took $625,000 out of their account and put it in a savings account for safekeeping. The broker put the remaining money in one stock: Rigel Pharmaceuticals.

In one day, the couple lost $450,000 in this stock. The couple has sued the broker, claiming that he put them in bad investments and traded excessively to net himself almost $200,000 in fees. Their losses total $680,000 plus the money they would have made on that balance if they had it to invest.