BMO Nesbitt Burns Inc. and one of its brokers, have been hit with a law suit from a client who claims he lost a large portion of his portfolio because of his broker. A statement of claim has been filed in the Supreme Court of B.C. A defense has not yet been filed and nothing has been proven in court.

Baldur Fridrik Bjornson, a client from Duncan B.C., claims his $587,000 portfolio dwindled to a mere $117,000 thanks to the actions of broker Grant Campbell. Bjornson says he followed Campbell to Nesbitt Burns from Midland Walwyn Capital.

According to Stockwatch.com, the suit alleges that Campbell failed to spell out the risks of trading on margin and the implications of a margin call, or to suggest stop loss orders. It alleges that Campbell had full discretion over the accounts, even though he was not authorized for discretionary trading. It also alleges that Nesbitt Burns did not adequately supervise its broker.

The suit seeks unspecified damages, claiming not only his lost original capital, but foregone profits too.