Morgan Stanley Recovers Million Dollar Prom Note Balance from Advisor Who Represented Himself

Posted on February 5th, 2021 at 2:06 PM
Morgan Stanley Recovers Million Dollar Prom Note Balance from Advisor Who Represented Himself

From the Desk of Jim Eccleston at Eccleston Law LLC:

A sole arbitrator held a Florida advisor liable for the full amount of a $984,000 promissory note. The award also orders the advisor to pay $23,000 in legal and filing costs.

Morgan Stanley and other firms pay advisors “signing bonuses”, but they actually are structured as forgivable loans. Morgan Stanley and most firms require advisors to stay at the firm for between nine and twelve years for annual loan forgiveness. This veteran advisor joined Morgan Stanley in 2017, thereby leaving several years left on his note – and a hefty balance owed.

The advisor left after three years to focus on his international clients in Brazil. Regrettably, the advisor has been working from Brazil and did not challenge the Morgan Stanley case in person. Worse, the advisor chose to represent himself in the arbitration.

Some lessons are learned the hard way….Eccleston Law LLC represents financial advisors nationwide. Please contact us to discuss any issues that you may have.

Tags: eccleston, eccleston law, morgan stanley, self-representation

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