FINRA Expels Allen Hershberg

Soreide Law Group is investigating possible investor claims against securities broker Allen Hershberg (CRD: 1112312, Beverly Hills, California). Notably, FINRA sanctioned the securities broker, who worked for Morgan Stanley. Allegedly, Hershberg failed to provide information and documents to FINRA when it investigated potential FINRA rule violations governing outside business activities. Here is a brief summary of FINRA’s allegations against Hershberg.

Hershberg Barred By FINRA For Failure To Provide Information

Supposedly, on November 11, 2022, FINRA issued Acceptance, Waiver, and Consent No. 2022075757801 sanctioning Allen Hershberg for infractions. Specifically, Hershberg was barred as a securities broker. Notably, FINRA alleged that Hershberg failed to provide information and documents to FINRA when it investigated potential FINRA rule violations regarding outside business activities.

On July 27, 2022, Morgan Stanley filed a Form U5, disclosing that Hershberg was allowed to resign due to concerns regarding his unauthorized outside real estate investments. Additionally, there were concerns about Hershberg recommending these same investments to firm clients and others, including through limited liability companies he created.

This investigation began as a result of the Form U5 filed by Morgan Stanley for Hershberg on July 27, 2022.

As part of the investigation, on September 30, 2022, FINRA staff sent a letter to Hershberg in accordance with FINRA Rule 8210. The letter requested that he provide information and documents related to the allegations mentioned in his Form U5 filed by Morgan Stanley by October 14, 2022. Hershberg acknowledged receipt of the request in an email to FINRA on October 13, 2022. However, he failed to provide any of the requested information or documents by the specified deadline.

On October 17, 2022, FINRA staff sent a second letter to Hershberg, again in accordance with FINRA Rule 8210. The letter requested that he provide the previously requested information and documents by October 25, 2022. To date, Hershberg has not provided any of the information or documents requested by FINRA.

Allen Hershberg Terminated For Outside Business Activities

Evidently, Morgan Stanley Smith Barney disaffiliated with Hershberg on July 1, 2022. Allegedly, Hershberg engaged in an undisclosed outside business activity.

Morgan Stanley Investor Accuses Hershberg Of Unsuitable Trading

Supposedly, on March 8, 2011, a Morgan Stanley client filed a complaint about Allen Hershberg. Namely, the client alleged that Hershberg engaged in unsuitable trading. Because of this, the client allegedly sustained damages on auction rate securities. Therefore, the client requested compensation from Morgan Stanley or Hershberg. However, the securities firm denied this complaint.

Hershberg Employment Information

Hershberg worked for Morgan Stanley in Beverly Hills, California, as a securities broker from June 1, 2009, to July 27, 2022.

Damages Resulting From Morgan Stanley Securities Broker Allen Hershberg?

Have you experienced damages by investing with Allen Hershberg? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with an investment lawyer about a possible recovery of your losses. Soreide Law Group, who has effectively recovered money for hundreds of investors in all 50 states, represents clients on a contingency fee basis and advances all costs. Hershberg and brokerage firms Hershberg worked for deny any and all allegations of sales practice violations.