DETROIT (6/11/09)--CASE CU, based in Lansing, Mich., was awarded an arbitration award totaling more than $1 million in a case that alleged Prudential Equity Group misrepresented and omitted facts related to two mortgage-related types of investments. Prudential Equity Group was known as Prudential Securities before it merged with Wachovia Securities LLC. The investments were collateralized mortgage obligations (CMOs) and CMO Interest-Only strips (I/Os). A panel of three Detroit-area arbitrators from the Financial Industry Regulatory Authority, formerly the National Association of Securities Dealers, rendered the award, which included $900,000 in compensatory damages, $78,443 in interest and costs, and another $50,000 in legal fees. The case centered around Prudential's Credit Union Strategy Group, headed by Mark Wickard, a registered representative of Prudential and Wachovia (PRNewswire June 9). The $171.8 million asset credit union alleged that the complicated CMOs and I/Os, which are sensitive to interest-rate changes, were represented as safe and suitable, when in fact they were not. CASE suffered unexpected losses. Announcement of the decision was made by Shepherd, Smith, Edwards & Kantas LLP, a national firm specializing in litigation and arbitration of cases involving securities fraud and brokerage firm misconduct.