Tr?id=566623520170033&ev=PageView&noscript=1

Morgan Stanley Obtains TRO Against Pennsylvania LPL Advisor Over Inherited Accounts and Misrepresentations

Posted on March 23rd, 2023 at 1:13 PM
Morgan Stanley Obtains TRO Against Pennsylvania LPL Advisor Over Inherited Accounts and  Misrepresentations

From the desk of Jim Eccleston at Eccleston Law

A federal judge has awarded Morgan Stanley a temporary restraining order (TRO) against a Pennsylvania-based advisor who recently departed for LPL Financial. Judge Jennifer Wilson noted that Morgan Stanley was likely to suffer “irreparable harm” unless the advisor, Lonnie Friedman, was restricted from soliciting former clients governed by inherited account agreements.

Judge Wilson additionally ordered Friedman and LPL to return any Morgan Stanley client documentation within 24 hours of her order. The case will proceed to arbitration on an expedited basis with the Financial Industry Regulatory Authority (FINRA). The parties will return to court to argue whether the court should extend the temporary order into a preliminary injunction.

According to Morgan Stanley, Friedman, who managed nearly $450 million in assets, convinced his former clients to transfer their assets by promising a 50 basis point fee discount and “falsely” claiming that Morgan Stanley was “charging hidden fees.” Friedman allegedly pressured his former clients to transfer their assets to LPL by falsely informing the clients that they only had a 10-day window to complete the transfer. Friedman already had transferred nearly 155 clients and $200 million to LPL by the time Morgan Stanley filed its complaint, according to the firm. 


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

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

1784046159 Law
July 14, 2026
Mariner Wealth Advisors Reports Data Breach Affecting Nearly 9,000 Customers

Mariner Wealth Advisors LLC disclosed a data breach that exposed personal information of 8,995 customers, according to AdvisorHub.

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.