Former Morgan Stanley Advisor Barred by SEC for Misappropriating Client Funds
From the desk of Jim Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) issued an order barring Ronald E. Filoramo, a former Morgan Stanley advisor.
Between 2017 and 2021, Filoramo persuaded two longtime clients to redirect funds to a bank account supposedly owned by a third party, whom he claimed to be a Morgan Stanley client. However, this third-party account belonged to Filoramo's friend, who transferred the funds back to Filoramo, unbeknownst to the clients. Filoramo subsequently used the money for gambling and related expenses, and he concealed his actions with fraudulent account statements, as stated by the SEC.
According to AdvisorHub, Filoramo received a bar from the Financial Industry Regulatory Authority (FINRA) due to his failure to cooperate in an investigation related to the alleged misappropriation of funds. Filoramo entered into a partial settlement with the SEC in a separate proceeding.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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