Helen C. Carras and Bill G. Carras, Co-Executors of the Estate of Gus N. Carras, Deceased v. James S. Burns, Jr.

BUTZNER, Circuit Judge:

Bill and Helen Carras, executors of their father’s estate, appeal from a judgment in their favor for $56,000 in a suit they brought against Merrill Lynch, Pierce, Fenner & Smith and two of its employees to recover compensatory and punitive damages for losses to a margined securities account. Their claim has five elements: (1) violation of § 10(b) of the Securities Exchange Act of 1934 and Rule 10b — 5; (2) churning; (3) pendant charges of fraud and breach of fiduciary duty under state law; (4) violations of margin maintenance and “know your customer” rules of the New…