[ by Melanie Gretchen ] A FINRA arbitration panel issued an award to former Red Sox catcher Doug Mirabelli who, with his wife, filed a suitability claim against one of the "thundering herd" advisers at Bank of America - Merrill Lynch.  The 3-member panel awarded Mr. Mirabelli, 41, and wife, Kristin, more than $1.2 million in damages and fees. The Broker. Phil Scott is a 27-year veteran of the Street who was ranked last year by Barron's as the 33rd top broker in the country.  He manages some $1.1 billion in assets. Allegedly Unsuitable Investments. Mr. Mirabelli, now a real estate agent in Michigan, and his wife invested $880,000 in March 2008 with the adviser.  Mr. Scott put the money into the Merrill Lynch Phil Scott Team Income Portfolios, a collection of 33 dividend-paying growth stocks.  The couple took out loans enabling them to invest some $1.8 million in the equities portfolio, but did so on the condition that the account not dip below $1 million.  By November 2008 - 8 months later, during the financial crisis - the account value had fallen below the $1mn threshold, forcing the couple to sell the portfolio to cover the loans. In the arbitration case, lawyers for the claimants, Mr. and Mrs. Mirabelli, argued that Mr. Scott had put his clients’ money into unsuitable investments, specifically an all-growth-stock portfolio.  They also argued he had failed to properly brief the Mirabellis on the loans and their requirements. Panel's Decision. The panel awarded the Mirabellis their original investment, and made Scott, the respondent, pay all of the claimant's legal fees and arbitration costs.  A spokesperson for Merrill disagreed with the ruling, saying, "This account was handled properly during a very difficult time, when there was extreme market volatility." Latest defeat for Phil Scott. The Mirabellis' case marks adviser Phil Scott's second defeat in the past 12 months.  John, Natalie, and Harriet Baker were awarded in arbitration $880,000 in damages last June - which has not yet been paid because Merrill is appealing and filed a motion to vacate the award.  They contend that the arbitration panel did not take into account recommendations by Mr. Scott that the Bakers not sell their holdings near the bottom of the post-crisis markets. Merrill has not decided whether to appeal the Mirabelli decision. In 2 other arbitration cases involving this advisor, Mr. Scott won an August ruling, while the other one - filed in April 2011 - is pending. For more details, go to [Dealbook, 1/22/12].