What Did Your Brokerage Firm or Investment Adviser Do Wrong With GWG
Published On: March 21, 2022

Stoltmann Law Offices, P.C. is a Chicago-based investor-rights and consumer protection law firm offering representation nationwide on a contingency fee basis to defrauded investors and consumers alike. If you are a victim of the alleged Ponzi scheme perpetrated by former Morgan Stanley financial advisor Shawn Good, you likely have sustainable legal claims against Morgan Stanley.  It is critical to your chances to recover what was taken from you to consider all legal options and to not depend on the Securities and Exchange Commission or criminal prosecutors to make you whole.

The attorneys at Stoltmann Law Offices have over fifty years of combined experience representing victims of Ponzi schemes. According to published reports, Shawn Good is alleged to have stolen millions of dollars from victims of a scam he ran while he was a financial advisor at Morgan Stanley.  The SEC has filed a civil complaint against Good, and Morgan Stanely fired him in February for failing to cooperate with an internal investigation in connection with his scheme.

Morgan Stanley can be held liable for Shawn Good’s scheme for two primary reasons.  First, as an agent of Morgan Stanley, the company is responsible for Good’s conduct in the course and scope of that employment. Sure, running a criminal scheme is not necessarily what his employment with Morgan Stanley was about, but offering investment advice and financial services was.  You are not seeking to hold Morgan Stanley liable because Good broke into a jewelry store, the agency liability stems from Good’s solicitation to invest in securities and products in furtherance of providing investment advice. That falls squarely inside the agency relationship with Morgan Stanley.

The second road to recovery for investors is through a negligent or failure to supervise claims. In basically every case like this, there are red-flags that the financial advisor was up to no good that went ignored by compliance. Did Good have a lifestyle that did not comport with his legitimate income? Court records indicate that almost a million dollars of the money he stole went to pay credit card bills, so it seems like the answer there is “yes.”  It is also likely his credit was wrecked, another huge red flag that is monitored by brokerage firms like Morgan Stanley. The worst red flag is the fact that Good stole from his Morgan Stanely clients who were always only a compliance phone call away from exposing the scam.  Morgan Stanley can be held liable for failing to adequate supervise Good.

Victims of Good’s scheme should file their claims in FINRA arbitration. Do not waste time filing a claim in court – you will be compelled to arbitration after months pass. Our attorneys have represented defrauded investors in more than 2,500 FINRA arbitrations since 1999 and we have recovered tens of millions of dollars for victims of investment fraud.  If you are a victim of Shawn Good’s scheme, please contact Stoltmann Law Offices at 312-332-4200 for a free, no obligation consultation with a securities attorney.


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.


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