Morgan Stanley To Pay $2.4M Over Former Employee's Trades
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 Morgan Stanley.
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.