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by Mike Caswell

Canaccord Financial Inc. and its former broker, Lawrence Chang, are facing another lawsuit in the Supreme Court of British Columbia from clients who say that Mr. Chang caused excessive losses in their account. The suit, filed by retirees Hassan Kardan and Homa Nebavi, claims that Mr. Chang made unauthorized and unsuitable trades in a number of risky companies. Mr. Kardan and Ms. Nebavi say that as a result of the trades, they lost substantially all the money they invested with Mr. Chang. They are seeking damages of $1.89-million (U.S.) plus $288,404 (Canadian).

The allegations are contained in a notice of claim that the couple filed at the Vancouver courthouse on Nov. 15, 2012. According to the suit, the couple opened accounts with Mr. Chang in November, 2006. They told him they were not sophisticated investors and had minimal knowledge or experience in the stock market. They had total assets of about $3.5-million.

At Mr. Chang's urging, the couple contributed $1.89-million (U.S.) in stocks and cash, plus $288,404 (Canadian) in cash, to their accounts, the suit states. Shortly after, Mr. Chang started buying and selling a number of high-risk stocks using his own discretion, the couple claims. They say he bought the shares on margin most of the time and did so without their knowledge or authorization.

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