SEC Accuses Former Morgan Stanley Advisor of Conducting a Ponzi Scheme

Posted on April 27th, 2022 at 1:05 PM
SEC Accuses Former Morgan Stanley Advisor of Conducting a Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has accused a former Morgan Stanley advisor of using client funds to cover personal expenses including a Tesla vehicle, credit card bills and cash transfers. 

The former Morgan Stanley advisor, Shawn Good, permitted clients to send funds to his personal bank account to purportedly make low-risk investments in real-estate development projects, according to the SEC’s complaint. The SEC alleges that Good defrauded investors, including several retirees, out of nearly $4.8 million. Good has been terminated by Morgan Stanley as a spokesperson classified the former advisor’s conduct as “plainly unacceptable.” 

According to the SEC, Good’s scheme lasted around a decade as he used client funds to cover bills, repay earlier investors and transfer cash on Venmo. Good informed clients that the purported investments would pay returns between 6% and 10% over the next three to six months. However, Good never tendered a written agreement to his clients, according to the SEC. 

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

 
 

Tags: eccleston law, sec, morgan stanley

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