Former Morgan Stanley Advisor Pleads Guilty to $7 Million Ponzi Scheme

Posted on October 4th, 2022 at 1:06 PM
Former Morgan Stanley Advisor Pleads Guilty to $7 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law.

A former North Carolina-based Morgan Stanley advisor has pleaded guilty to two felony counts in connection with a Ponzi scheme he operated.

The former Morgan Stanley advisor, Shawn Good, misappropriated nearly $7.24 million from nearly a dozen clients between 2012 and 2022, according to prosecutors. Good raised the funds by convincing some clients to take out loans against their portfolios and subsequently wire funds to their personal bank accounts and then to Good’s own accounts. Good falsely informed clients that their funds would be invested in real estate or municipal bonds that guaranteed returns of 6% to 10% each year, according to the DOJ. However, Good instead used the funds to purchase a Florida condominium, luxury vehicles, and vacations to Europe.

Further, Good was able to conceal the scheme in typical Ponzi scheme fashion by using new investor funds to pay earlier investors, according to prosecutors. Good was terminated from Morgan Stanley in February after he failed to cooperate with an internal firm review based on client allegations, according to the firm’s filing with state regulators. Good, who is schedule for sentencing on December 19, pleaded guilty to one count of fraudulent wire transfers and another for money laundering.

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

Tags: eccleston, eccleston law, advisors, law

Return to Archive

TESTIMONIALS

Previous
Next

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.

LATEST NEWS AND ARTICLES

July 1, 2025
State Regulators Fine Five Major Broker-Dealers Nearly $10 Million for Excessive Commission Charges

A coalition of state securities regulators has ordered five broker-dealers — including Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade — to pay almost $9.9 million in penalties for overcharging customers on small-value trades.

June 30, 2025
SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

The Securities and Exchange Commission (“SEC”) has charged David A. Nagler and his firm, New Line Capital LLC, with defrauding clients through deceptive fee disclosures and undisclosed conflicts of interest.

 

June 27, 2025
FINRA Sanctions Advisor for Accepting $1 Million Inheritance from Client Without Firm Approval

FINRA has fined and suspended veteran advisor Kenneth J. Malm for accepting a $1 million inheritance from a client without receiving the necessary firm approval.