The state of Massachusetts charged Morgan Stanley for unethical behavior. The firm allegedly conducted a sales contest among its financial advisers to encourage clients to borrow money against their brokerage accounts. This is a violation of the financial advisers’ fiduciary duty to their clients by recommending that they take on debt with securities serving as collateral. The contest ran from January 2014 until April 2015, and 30 advisers participated. It allegedly generated $24 million in new loans and advisers could earn $1,000 for 10 loans, $3,000 for 20 loans and $5,000 for 30 loans. The state is seeking a censure, cease and desist and “equitable relief” for customers who took out the loans. The state is also seeking an administrative fine. If you invested money with Morgan Stanley, please call our law offices in Chicago today for a free consultation with one of our attorneys. 312-332-4200.
The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.