FINRA announced a
$2.4 million arbitration award against Morgan Stanley to resolve customer complaints against one of the firm’s former
brokers, Steven Mark Wyatt. Numerous former customers of Wyatt accused
him of mishandling their investments while he was registered with
The latest accusations came from a group of physicians that accused Wyatt
of unauthorized and excessive trading that resulted in substantial financial
losses during the 2008 financial crisis.
Wyatt was accused of purchasing stocks on behalf of his customers that
he owned, including exchange traded funds, and other risky securities.
The $2.4 million arbitration decision that was announced on July 24 is
not the only claim that Wyatt faced. The former Morgan Stanley broker
has faced four other cases that have since been settled or resolved.
Why does Morgan Stanley have to pay?
Brokerage firms can be responsible for failing in their duties to supervise
their registered brokers and financial advisors. Learn more about
why investors can hold the brokerage firm responsible for broker misconduct.
Why FINRA arbitration?
Most claims involving investment losses and registered brokers/firms are
settled through FINRA arbitration. This is because most contracts between
investors and brokerage firms contain a mandatory arbitration provision.
When you open an account at a registered brokerage firm, usually this
means that you are agreeing to settle any disputes through FINRA arbitration. More on
why FINRA arbitration is often mandatory.
If you trusted a registered broker with your investments and you lost a
substantial amount of money, we invite you to contact a broker misconduct
lawyer at Meyer Wilson today for a
free review of your case to learn your legal rights and options.