An arbitration panel has ordered Merrill Lynch to pay an investor $1.4 million in a case that called into question the value of the collateralized loan obligation investments the firm sold.

Bobby L. Hayes, a 68-year-old Incline Village, Nev., resident and retired chemical engineer, invested $883,000 in series E tranche investments in collateralized loan obligations that had already lost its value when he bought them in August 2007, his lawyer Thomas Bradley, who is based in Reno, Nev., said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.