Three Morgan Stanley Advisors Clear Records of Back-Office Mistake

Posted on April 11th, 2022 at 1:08 PM
Three Morgan Stanley Advisors Clear Records of Back-Office Mistake

From the Desk of Jim Eccleston at Eccleston Law:

A Financial Industry Regulatory Authority (FINRA) arbitration panel has expunged the records of three advisors who are part of a large Morgan Stanley team. The disclosure had related to their purported liability for a customer complaint pertaining to a back-office mistake over a misvalued stock certificate.


According to the FINRA panel, the advisors were “not responsible” for the mistake that occurred in Morgan Stanley’s back-office. The panel reasoned that the complaint ought to be removed because it was “factually impossible or clearly erroneous”, according to the award. The claim was filed in June 2021, which was six months after Sean’s team departed UBS for Morgan Stanley.


According to the award, customers had initially discovered old paper stock certificates and sought to have them valued and deposited at Morgan Stanley. However, Morgan Stanley’s back-office “mistakenly valued” the certificates at more than $1 million and subsequently sold them. The certificates eventually were deemed “worthless”, which prompted Morgan Stanley to reverse the sale and ensure their customers were “made whole”, according to the award. Nevertheless, the customers filed a lawsuit against Morgan Stanley and the advisors, but the customers later settled with the firm for “a nominal sum” of $20,000 in a settlement that did not involve the advisors, according to BrokerCheck.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston law, finra, morgan stanley

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

December 19, 2024
GPB Capital Investors See Progress as Court Confirms Receivership

In a significant development for investors in GPB Capital Holdings, the private equity firm will move into receivership following a prolonged legal battle.

December 18, 2024
SEC Fines Cantor Fitzgerald $6.75 Million for Misleading SPAC Investors

The Securities and Exchange Commission (SEC) has charged Cantor Fitzgerald, L.P. with causing two special purpose acquisition companies (SPACs) under its control to make misleading statements to investors before their initial public offerings (IPOs). 

December 17, 2024
Former Western Asset Management Co-CIO Charged with Fraud for Cherry-picking Trades

The SEC recently charged Ken Leech, former Co-CIO of Western Asset Management, with fraud.