Ex-Morgan Stanley Advisers Plead Guilty to Fraud Charges

Posted on February 2nd, 2018 at 3:19 PM
Ex-Morgan Stanley Advisers Plead Guilty to Fraud Charges

From the Desk of Jim Eccleston at Eccleston Law LLC:

Two former Boston-area Morgan Stanley financial advisers, James Polese, 51, and Cornelius Peterson, 28, both have pled guilty to one count of conspiracy, one county of investment adviser fraud and three counts of bank fraud. Polese also has pled guilty to another five counts of bank fraud and one count of aggravated identity theft.

According to federal prosecutors in Massachusetts, between 2014 and 2017, Polese and Peterson transferred approximately $850,000 out of three client accounts, without their consent, to fund their own investments in a wind farm project. Polese also transferred approximately $93,000 out of one of his client’s account to pay for his children’s college tuition.

In a separate action, the SEC filed a civil complaint against Polese and Peterson accusing them of violating the Securities Exchange Act and the Investment Advisers Act. In the civil complaint, the SEC asserted that Polese and Peterson should be forced to disgorge their “ill-gotten gains” and also pay civil penalties.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive



I have the best legal firm in the country to defend me. Awesome job!

Cindy C.


September 29, 2023
Traders Engage in Boom-or-Bust Options in Stock Market

The stock options market is experiencing a surge in activity, as many individual investors are eagerly engaging in trades that expire within hours or days to take advantage of the volatile market swings.

September 28, 2023
Former LPL Affiliate Compliance Chief Suspended by FINRA for Unauthorized $1 Million Transfer

The Financial Industry Regulatory Authority (FINRA) fined and suspended Jeffrey K. Kirkpatrick, a former chief compliance officer at a registered investment advisor previously affiliated with LPL.

September 27, 2023
Former Creative Planning Staff File Lawsuit Challenging Non-Compete Agreements

Four former employees of Creative Planning have filed a lawsuit, alleging that their non-compete agreements with the firm unlawfully restrict their ability to work in the industry.