FINRA Arbitrators Order Former Morgan Stanley Rep to Pay $545K in Promissory Note Payments

Posted on January 9th, 2018 at 10:08 AM
FINRA Arbitrators Order Former Morgan Stanley Rep to Pay $545K in Promissory Note Payments

From the Desk of Jim Eccleston at Eccleston Law LLC:

A FINRA arbitration panel has ordered former Morgan Stanley representative, Sean D. Daly of Albertville, Minnesota to pay $545,000 to cover three promissory notes that came due when he transitioned to an RIA. Mr. Daly also was ordered to pay interest, legal fees, and arbitration costs, according to the award.

Moreover, according to BrokerCheck, Mr. Daly had been registered with Morgan Stanley for 3 years before leaving in July 2016 to become an RIA at Great Valley Advisor, which clears through LP Financial.

In addition, Mr. Daly filed a counterclaim against Morgan Stanley for defamation. According to his counterclaim, Mr. Daly alleged that former colleagues and the firm defamed him to others in the industry and to his clients. In his counterclaim, Mr. Daly sought damages of approximately $179,000. However, the arbitration panel ultimately denied Mr. Daly’s counterclaim, finding that he failed to support his claim during the hearing. 

Reps are reminded to retain qualified legal counsel in connection with their counterclaims as well as any defenses they may have against collection of a prom note balance.

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



Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.


September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.