Soreide Law Group is investigating potential investor claims against securities broker Barry Connell (CRD#: 3070984, Ridgewood, New Jersey). Notably, the Financial Industry Regulatory Authority (“FINRA”), who barred the broker, reports through BrokerCheck that a slew of clients filed disputes about him. Mainly, these clients allege Connell’s misdeeds with respect to their Morgan Stanley accounts. Here’s more:
Barry Connell Allegedly Misappropriates Funds From Morgan Stanley Smith Barney Client
First of all, a client of Morgan Stanley Smith Barney contested Barry Connell’s actions by bringing FINRA Arbitration #: 17-03198 on December 22, 2017. Allegedly, Connell misappropriated the client’s assets, causing the client to sustain losses. Consequently, Morgan Stanley Smith Barney settled the client’s allegations on May 6, 2019 through compensating the client in the amount of $1,350,000.
Morgan Stanley Client Indicates Connell Breached Fiduciary Duty, Sold Unsuitable Investments
Secondly, on March 17, 2017, a Morgan Stanley client brought a formal dispute in reference to Barry Connell. Mainly, the client contended that the financial advisor possibly forged the client’s signature on checks and account documents. It appears that the client incurred losses on options and cash management accounts. For this reason, on March 16, 2018, Morgan Stanley opted to resolve this client’s dispute by paying the client $725,000.
Thirdly, Morgan Stanley clients filed disputes in June 2017. Apparently, these clients suggest that Barry Connell breached a fiduciary duty and failed to manage their accounts in their best interest. Moreover, a client suggested that between 2008 and 2017, Connell made unsuitable transactions.
FINRA Bars Barry Connell
Further, on April 21, 2017, FINRA barred Barry Connell for failure to respond to a Request for Information. It appears that FINRA suspended him in January 2017. Evidently, it barred him from maintaining an association with a FINRA member when he did not proactively resolve that suspension.
SEC Charges Connell With Misappropriation
Finally, on February 3, 2017, Securities and Exchange Commission (“SEC”) brought Civil Suit #: 1:17-cv-00831 against Barry Connell alleging that he violated Investment Advisors Act by misappropriating $5,000,000 from investment advisory clients from 2015 to 2016. Allegedly, Connell made 100 unauthorized transactions by creating false documents that purportedly showed client authorizations for wire transfers and checks to third parties for his benefit including a private jet service. The matter is ongoing; however, SEC did issue Order #: 3-18566 fining Morgan Stanley $3,600,000 for failing to supervise Connell.
Did Morgan Stanley’s Barry Connell Sell You Bad Investments?
Have you experienced losses by investing with Barry Connell? If you have, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a potential recovery of your investment losses. Soreide Law Group provides representation to clients on a contingency fee basis and advances costs. The law firm has recovered millions of dollars for clients who have experienced losses due to misconduct of securities brokers and brokerage firms.