Former Morgan Stanley Advisor Sentenced to 5 Years for Fraud

Posted on April 1st, 2021 at 9:34 AM

From the Desk of Jim Eccleston at Eccleston Law LLC:

Michael Barry Carter is going to prison after stealing at least $6.15 million from clients to fund his lifestyle. Carter pled guilty to advisor fraud, making approximately 53 unauthorized transfers from customer accounts to his own. Carter also admitted to using customer funds to pay his mortgage, credit card fees, and country club membership fees. Carter's action affected at least five customers. 

Morgan Stanley fired Carter in July 2019 after allegations that he had misappropriated customer funds, according to his BrokerCheck. A Morgan Stanley spokesperson stated, "the firm notified law enforcement and regulators immediately after Merrill discovered Carter's actions." 

From 2007 to at least 2009, Carter stole close to $5 million from his customers by forging signatures on bank authorization forms and making unauthorized wire transactions from their account to his own. Carter also admitted to embezzling more than $50,000 from a non-profit sports organization, according to the U.S. Attorney's Office. 

Carter's fraud was exposed when a customer and her daughter attempted to obtain a bridge loan to cover relocation expenses. In doing so, the customer learned that someone had already taken out an $800,000 loan in her name. It quickly was determined that the loan proceeds went to Carter's bank account. 

Eccleston Law LLC represents financial advisors nationwide. Please contact us to discuss any issues that you may have.

Tags: eccleston, eccleston law, morgan stanley, fraud

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