Investor Sues Monex Over Claimed Losses

A Florida investor who says he lost $130,000 through Newport Beach-based Monex Deposit Corp. filed a lawsuit against the company, which sells gold, silver and other precious metals, his attorney said Monday.

The suit, filed by Paul Weber in U.S. District Court in Santa Ana, alleges that Monex manipulated prices, interest rates and margin calls in its dealings with investors who had margin accounts at the firm since March 1996. Under a margin account, customers can borrow from the company to make additional investments. Such practices can yield substantial returns, but also are highly risky.

Officials at Monex could not be reached for comment.

The suit also names Louis E. Carabini and his son, Michael A. Carabini, who are identified as Monex principals. Both Monex and Louis Carabini have been the target of previous lawsuits and regulatory actions involving investor losses.

Reno attorney Kevin McInerney, who is representing Weber, said he would seek several million dollars in damages.