Morgan Stanley to Pay Adviser $2.5M in a Defamation Claim

Posted on August 25th, 2016 at 8:42 AM
Morgan Stanley to Pay Adviser $2.5M in a Defamation Claim

From the Desk of Jim Eccleston at Eccleston Law LLC:

An independent adviser named Dale Cerbert of The Villages, Florida was awarded $2.5 million by FINRA relating to a defamation claim he made against Morgan Stanley after his dismissal from the firm.

Mr. Cebert joined Morgan Stanley in July 2012 after a long career as an independent adviser. However, Mr. Cebert was terminated from Morgan Stanley in 2014 because it alleged that he had received numerous customer complaints, was the subject of regulatory actions and that he had been engaging in improper outside business activities. Mr. Cebert denied those allegations entirely.

After his termination, Morgan Stanley sued Mr. Cebert in an attempt to force him to repay the balance on his promissory notes that had been offered to him when he joined the firm. Mr. Cebert counter-sued for damages and sought to expunge false and defamatory language from his Form U5.

In its decision, FINRA awarded Mr. Cebert roughly $2.5 million in damages, forgave the balance remaining on his promissory notes, granted expungment, and modified his termination language to read, "Terminated without cause."

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. 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: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive



Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.


August 15, 2022
FINRA Proposal Would Permit Private Homes to Serve as Non-Branch Offices

The Financial Industry Regulatory Authority (FINRA) has filed proposed changes to FINRA Rule 3110 with the Securities and Exchange Commission (SEC).

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.