Morgan Stanley Agrees to Pay the New Hampshire Bureau of Securities Regulation $1 Million to Settle Churning Allegations by an Ex-Broker

Posted on December 21st, 2018 at 9:44 AM
Morgan Stanley Agrees to Pay the New Hampshire Bureau of Securities Regulation $1 Million to Settle Churning Allegations by an Ex-Broker

From the Desk of Jim Eccleston at Eccleston Law LLC:

Morgan Stanley and the New Hampshire Bureau of Securities Regulation have reached a $983,000 settlement agreement stemming from allegations of the firm's failure to supervise ex-broker, Justin Amaral for excessive trading and other unauthorized activities in three client accounts.

According to the complaint filed by the state of New Hampshire, Mr. Amaral, who has six disclosures on his Brokercheck and was barred by FINRA in 2015, resigned from Morgan Stanley in 2014 after being investigated for being both an executor and beneficiary of a client’s estate. In addition, according to New Hampshire, Mr. Amaral churned and made excessive trades in three client accounts in order to collect substantial commission payments.   

According to the terms of the settlement, Morgan Stanley will pay the state of New Hampshire a fine of $450,000 and costs of $50,000. In addition, Morgan Stanley agreed to pay $483,000 to three New Hampshire clients who had incurred losses as a result of Mr. Amaral’s excessive trading in their accounts.

Eccleston Law is investigating the fraudulent activities of Justin Amaral. Those with information should contact our law firm.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, morgan stanley, new hampshire bureau of securities regulation, settlement

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