he Mediators
Former Detroiter Karne Klausmeyer
recovered money she lost because
of a stockbroker's risky investments.
Now she is an arbitrator.
KIMBERLY LIFTON STAFF WRITER
A dental hygienist with a
mind for business,
Karen Klausmeyer never
envisioned a career in
financial securities with
Marc Baldinger.
aren Klaus-
meyer never
will forget the
gamble of her
lifetime.
It was Noirember
1991, and she was
looking for a secure
way to invest her
$30,000 savings —
half to be ear-
marked for her
son's college
education.
Ms. Klaus-
meyer asked
for safe funds;
her broker selected risky
stocks. Within five
months, she lost $15,000.
"He did the opposite of
what he had conveyed,"
said 31-year-old Ms.
Klausmeyer, formerly of
Southfield, now of Palm
City, Fla. "He bought and
sold without my consent.
He just kept saying,
`Trust us.'
"And he really thought
he could do it," she said.
She told the story to
her Palm City, Fla.,
neighbor, Charlotte
Baldinger, who sent her
to speak with her hus-
band, Marc Baldinger. He
was working for a nation-
al financial arbitration
service. He took her case
and settled it without a
hearing.
Today, Ms. Klausmey-
er, 31, a dental hygienist
who previously managed
the dental office of her
husband, Dr. William
Klausmeyer, is using her
personal experience to
help others.
She has joined Mr.
Baldinger as vice presi-
dent of the firm he
launched seven months
ago, Securities Arbitra-
tion Services (SAS).
Arbitration saves inves-
tors and brokerages time
and money by allowing
them to avoid long and
costly legal proceedings.
SAS takes cases that fit
into three categories:
People who have invested
in limited partnerships
that they believed would
be secure; those who suf-
fered losses from "churn-
ing," when a broker
makes excessive transac-
tions; and inappropriate
investments like those
made by Ms. Klaus-
meyer's broker.
"The era of greed
apparently has taken its
toll on a large number of
unfortunate risk adverse
investors," Mr. Baldinger
said. "Our job is to help
the client. And the way to
do it is to get all or part of
the client's money back."
Mr. Baldinger believes
most brokers are rep-
utable. He estimates that
just 2 percent of investors
have suffered from bro-
kers using inappropriate
means to make money.
SAS has an impressive
success rate at 90 per-
cent. But, Mr. Baldinger
added, the firm turns
away 65 percent of the
cases pitched to him. "If
we don't think we can
win, we don't take it."
During the past few
months, SAS, which has
about 75 clients in 15
states, began marketing
itself in the metropolitan
Detroit area.
"The turmoil has
turned into a very gratify-
ing experience," said Ms.
Klausmeyer, who suggest-
ed the firm advertise in
Michigan, her home state.
Response was so over-
whelming, she said, that
the company has hired a 0,
Michigan representative. 0,
To date, 10-15 Michi- cr,
gan securities victims are
pending on the SAS case cc
roster. None of the cases a_
has been settled, and
clients have been advised