Morgan Stanley to Pay Adviser $2.5M in a Defamation Claim
From the Desk of Jim Eccleston at Eccleston Law LLC:
An independent adviser named Dale Cerbert of The Villages, Florida was awarded $2.5 million by FINRA relating to a defamation claim he made against Morgan Stanley after his dismissal from the firm.
Mr. Cebert joined Morgan Stanley in July 2012 after a long career as an independent adviser. However, Mr. Cebert was terminated from Morgan Stanley in 2014 because it alleged that he had received numerous customer complaints, was the subject of regulatory actions and that he had been engaging in improper outside business activities. Mr. Cebert denied those allegations entirely.
After his termination, Morgan Stanley sued Mr. Cebert in an attempt to force him to repay the balance on his promissory notes that had been offered to him when he joined the firm. Mr. Cebert counter-sued for damages and sought to expunge false and defamatory language from his Form U5.
In its decision, FINRA awarded Mr. Cebert roughly $2.5 million in damages, forgave the balance remaining on his promissory notes, granted expungment, and modified his termination language to read, "Terminated without cause."
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