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

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As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

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