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

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