Former Advisor Awarded $147,000 in Morgan Stanley Dispute Over Congressional Run
From the desk of Jim Eccleston at Eccleston Law
In a recent arbitration decision, FINRA ordered Morgan Stanley to pay $147,000 in damages to Deborah Adeimy, a former advisor from Florida. Adeimy accused the
wirehouse of improperly denying her permission to run for a congressional seat in 2022. Adeimy nonetheless ran for office but ultimately lost the Republican primary for the House seat in Florida's 22nd District.
As reported by AdvisorHub, Adeimy argued that Morgan Stanley had violated its employment contracts and had engaged in tortious interference, constructive discharge, and inequitable treatment. She even sought approval for her campaign as an outside business activity. In response, she alleged that the firm effectively forced her out by reassigning her clients instead of granting her a temporary leave under its policies.
According to AdvisorHub, firms have broad discretion in approving advisors' outside businesses, and political roles like running for office are closely scrutinized due to potential conflicts of interest and to ensure that candidates' views do not reflect adversely on the firm.
The award, nonetheless, is a small victory for Adeimy.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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