Former Morgan Stanley Advisor Sentenced To 7.25 Years For Fraud

Posted on June 2nd, 2023 at 1:26 PM
Former Morgan Stanley Advisor Sentenced To 7.25 Years For Fraud

From the desk of Jim Eccleston at Eccleston Law 

Shawn E. Good pleaded guilty in September to wire fraud and money laundering charges based on allegations that he had operated a decade-long Ponzi scheme from 2012 to 2022. 

Good raised money by encouraging clients to take out loans against their portfolio to invest in tax-free municipal bonds but instead had them wire the money to their personal bank and then to his bank accounts. Additionally, Good used new investor funds to pay old investors.

Good has been sentenced to seven years and three months in prison for stealing almost $7.25 million from around a dozen former customers, according to an announcement from the U.S. Attorney's Office for the Eastern District of North Carolina. Good also was ordered to pay $3.6 million in restitution as part of his guilty plea.

According to AdvisorHub, Good was discharged in February 2022 for declining to cooperate with Morgan Stanley’s review following client complaints. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have barred Good from the securities industry.

 

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

 

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

January 8, 2026
Georgia Investment Advisor Pleads Guilty to Ponzi Scheme

A former Georgia investment adviser has pleaded guilty to wire fraud after federal prosecutors accused his firm of operating a multiyear Ponzi scheme that cost investors millions of dollars, as reported by Financial Advisor News.

January 7, 2026
FINRA Releases 2026 Regulatory Oversight Report, Spotlighting Private Placement Compliance Risks

The Financial Industry Regulatory Authority (FINRA) released its 2026 Annual Regulatory Oversight Report, responding directly to member feedback and reinforcing its stated mission to protect investors and promote market integrity.

January 6, 2026
SEC Halts Review of Ultra-Leveraged ETFs, Citing Risk Limits

The U.S. Securities and Exchange Commission (SEC) has stepped in to curb the expansion of ultra-leveraged exchange-traded funds, issuing a series of warning letters that effectively block proposed products designed to deliver three- and five-times the daily returns of stocks, commodities, and cryptocurrencies.