Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Morgan Stanley Ordered to Pay $782,000 Over Mismanagement of Client’s Estate

Posted on April 4th, 2023 at 1:05 PM
Morgan Stanley Ordered to Pay $782,000 Over Mismanagement of Client’s Estate

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï 

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Morgan Stanley to pay $782,000 to a client’s estate after the firm allegedly ignored court-ordered limits when permitting a conservator to withdraw from the account.

Morgan Stanley will pay $554,834 in damages and $227,438 in interest to the estate. The claimant had alleged that a conservator was allowed to transfer “large sums of money” from the accounts despite Morgan Stanley having “actual knowledge” of the limits, according to the award.

The estate’s arbitration claim accused Morgan Stanley of unauthorized transactions, breach of fiduciary duty, breach of know-your-customer rules and general violations of FINRA rules. The estate had sought more than $3.7 million compensatory and punitive damages while Morgan Stanley denied the allegations and claimed to only be liable for $154,740 in damages, according to the award. The panel did not explain its decision, but the damage total nearly equals the $547,082 that the estate had sought specifically for “disbursements.”

 

ÍøÆØ³Ô¹Ï 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
Quotes Bigger

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.