Court orders Capital Solutions to repay investors
The Court of Appeal has ordered Capital Solutions, an investment adviser and securities dealer, to pay US$647,053 to two persons who placed investments with the company several years ago.
The lawsuit filed by Marietta Rizza and Roberto Rizza 11 years ago had sought damages of US$931,845 in the Supreme Court. Roberto is the son of Marietta Rizza and was authorised to conduct business on her behalf. Over time, the Rizzas had given Capital Solutions around US$1.37 million to invest on their behalf, court documents indicate.
In May 2009, not satisfied with what the judgment said was the continued failure to return their funds to them, the Rizzas took legal action against Capital Solutions and William Massias, who at one stage was the principal owner of the firm with at least 85 per cent shareholding. Before January 2008, he was also a licensed investment adviser as well as president and CEO of Capital Solutions.
There were also a number of reconciliation exercises after the lawsuit was filed, which in one case saw Capital Solutions paying over US$35,002, with interest, to the Rizzas.
The case went to trial in the Supreme Court in May 2014, at which point the judge granted a request that the claim against Massias be struck down. Massias took no further part in the case.
Final judgment was entered in favour of the Rizzas in the sum of US$610,098, with interest at six per cent.
Capital Solutions appealed the Supreme Court ruling and lost. The Court of Appeal panel, comprising Justices Dennis Morrison, Patrick Brooks and Paulette Williams, awarded US$647,053 to the Rizzas at six per cent interest over three years, from February 2024 to June 2017.
Capital Solutions, which was represented by attorney Christopher Dunkley, is said to be considering further appeals. Lord Anthony Gifford, QC, and Glenroy Mellish represented the Rizzas.