LAS VEGAS (CN) – Attorney Sandeep Baweja blew nearly $2 million of his clients’ class-action settlement by trading on margin through an online trading firm, his former clients say in a second class action, in Clark County Court.
Baweja represented about 1,300 former ZipRealty sales agents in Los Angeles Federal Court in May 2007, seeking income docked from their paychecks. The case was settled for $3.5 million, and the class was owed $2.5 million after costs and fees.
Plaintiffs say in their latest class action that Baweja took their $2 million between April and June 2008 to trade on the margin. By December, he had lost all but just over $50,000, the complaint states.
Plaintiffs say about 200 former sales agents never got their share of the settlement money.
They are represented by Sharon Nelson.