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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

October 30, 2025
SEC Sues Former Franchise Group CEO Over $350 Million Hedge Fund Fraud

The Securities and Exchange Commission (SEC) filed a lawsuit against Brian Kahn, former CEO of Franchise Group Inc., alleging he defrauded investors of more than $350 million in a multi-year investment adviser fraud tied to the collapse of Prophecy Asset Management (Prophecy).

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.