Hobbs v. Bateman Eichler, Hill Richards, Inc

In Hobbs v. Bateman Eichler, Hill Richards, Inc. (1985) 164 Cal. App. 3d 174, the broker was churning the plaintiff's account, making unsuitable investments and unauthorized transactions. The officer manager had actual knowledge of the excessive level of transactions and the huge commissions the account was generating. Although he denied that he actually had known of the broker's actions, he testified that had he known he would have approved. (Id. at p. 188.)