Focus Financial Board Member Sues J.P. Morgan Over $7 Million In Pandemic Losses

Posted on May 17th, 2022 at 1:57 PM
Focus Financial Board Member Sues J.P. Morgan Over $7 Million In Pandemic Losses

From the Desk of Jim Eccleston at Eccleston Law:

A California dermatologist, who also is a Focus Financial Partners board member, has filed a $7 million arbitration claim against J.P. Morgan over pandemic-related losses in a managed account. 

Morganroth Founder Holdings, Inc., which is the holding company for the dermatology business founded by Greg Morganroth, has accused J.P. Morgan of breaching its fiduciary duty and failing to adequately supervise an advisor who utilized an “unapproved stock market timing strategy.” In 2017, Morganroth opened an aggressive growth account with $26 million, according to his statement of claim with the Financial Industry Regulatory Authority (FINRA). The J.P. Morgan advisor allegedly sold a substantial portion of Morganroth’s equity holdings shortly before the March 23, 2020, market bottom and subsequently employed a strategy of keeping the discretionary portfolio mostly in cash or fixed income for the following year. Hence, Morganroth alleges that he missed out of the 2020 and 2021 rebound in the equity markets. 

The allegations from Morganroth, who has served on the board of directors for Focus Financial Partners since September 2020, do not address the 2022 market downturn that has subsequently erased most of the equity market gains that occurred after the pandemic began. However, J.P. Morgan has since filed a complaint in a U.S. District Court to move the case out of arbitration on the grounds that Morganroth’s account was held at the consumer bank, which is not overseen by FINRA. Morganroth’s account agreements had arbitration exclusions and forum selection clauses mandating claims to be filed in court, according to J.P. Morgan’s complaint. J.P Morgan additionally alleges that the company was simply following Morganroth’s instructions to dispose of his equity holdings and convert his account to a fixed income and cash strategy. 

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


Tags: eccleston law, focus financial partners, jp morgan

Return to Archive



Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015. 

June 23, 2022
Eccleston Law LLC Investigates Recovery Options for NRIA Investors

Headquartered in Secaucus, NJ, National Realty Investment Advisors (NRIA) recently declared bankruptcy amid investor redemption requests, federal and state investigations, and unsustainable debt.

June 22, 2022
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors.