Morgan Stanley Advisor Barred for Allegedly Embezzling $58,000 from Clients
From the desk of Jim Eccleston at Eccleston Law
Chingyuan "Gary" Chang, a former broker and investment adviser at Morgan Stanley, has been permanently barred from the securities industry by the Securities and Exchange Commission (SEC) for purportedly stealing over $58,000 from four customer accounts.
The SEC administrative proceeding revealed that between September 2021 and June 2022, Chang conducted 40 unauthorized ACH withdrawals, exploiting a loophole in Morgan Stanley's system which did not require separate client authorization for withdrawals initiated through third-party apps. Chang misappropriated funds from multiple clients, sometimes concealing his misconduct by selling securities in their accounts.
As reported by Financial Advisor, Morgan Stanley initiated an investigation in June 2022, leading to Chang's dismissal and repayment of the misappropriated assets. As part of the settlement, Chang agreed to a permanent bar from the securities industry and a civil penalty of $58,560.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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