Three Morgan Stanley Advisors Clear Records of Back-Office Mistake

Posted on April 11th, 2022 at 1:08 PM
Three Morgan Stanley Advisors Clear Records of Back-Office Mistake

From the Desk of Jim Eccleston at Eccleston Law:

A Financial Industry Regulatory Authority (FINRA) arbitration panel has expunged the records of three advisors who are part of a large Morgan Stanley team. The disclosure had related to their purported liability for a customer complaint pertaining to a back-office mistake over a misvalued stock certificate.


According to the FINRA panel, the advisors were “not responsible” for the mistake that occurred in Morgan Stanley’s back-office. The panel reasoned that the complaint ought to be removed because it was “factually impossible or clearly erroneous”, according to the award. The claim was filed in June 2021, which was six months after Sean’s team departed UBS for Morgan Stanley.


According to the award, customers had initially discovered old paper stock certificates and sought to have them valued and deposited at Morgan Stanley. However, Morgan Stanley’s back-office “mistakenly valued” the certificates at more than $1 million and subsequently sold them. The certificates eventually were deemed “worthless”, which prompted Morgan Stanley to reverse the sale and ensure their customers were “made whole”, according to the award. Nevertheless, the customers filed a lawsuit against Morgan Stanley and the advisors, but the customers later settled with the firm for “a nominal sum” of $20,000 in a settlement that did not involve the advisors, according to BrokerCheck.


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

 
 

Tags: eccleston law, finra, morgan stanley

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

October 3, 2025
SEC Charges Pennsylvania Man in $400 Million Ponzi Scheme

The Securities and Exchange Commission (SEC) has charged Daryl F. Heller of Pennsylvania, along with his companies Prestige Investment Group, LLC, and Paramount Management Group, LLC, for operating a Ponzi scheme that caused investor losses of roughly $400 million.

October 2, 2025
Mercer Advisors Expands Westward with Two RIA Acquisitions

Mercer Advisors has strengthened its presence in the West by acquiring two registered investment advisory firms with offices in Oregon, Idaho, and Southern California.

October 1, 2025
New Jersey Investor Sues Advisor and Insurers Over Premium Financing Losses

A New Jersey resident has filed suit against a financial advisor, his firm, two insurance companies, and other parties over losses tied to a premium financing arrangement for life insurance.