Eric Nichols, Former Morgan Stanley Broker Fined

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Eric Nichols CRD#: 2710703, former broker with Morgan Stanley of Rolling Hills, California, was fined $5,000 by the Financial Industry Regulatory Authority (FINRA) for allegedly attempting to settle one of his client’s complaints on his own.  Nichols also agreed to serve a 15 day suspension from the industry. Nichols allegedly wrote $28,000 of checks to the client without telling Morgan Stanley.  Morgan Stanley discharged Eric Nichols according to FINRA’s BrokerCheck on February 13, 2019, following allegations that, “the representative may have executed some transactions for non-discretionary client accounts without confirming the transactions directly beforehand in all cases and that the representative reimbursed one client directly for an account-related issue.” Nichols is currently not registered as a broker.
According to FINRA’s findings, allegedly, Nichols recommended that the client make investments in the preferred stock of one issuer. The client also made additional unsolicited investments. The issuer had suspended its dividend payments, and the client had incurred significant unrealized losses in the security. According to FINRA, the client complained to Nichols, both verbally and in writing, about the unrealized losses that he had incurred and the fact that the dividend payments had been suspended.
According to the document, Morgan Stanley knew about the client’s complaints, but not about Eric Nichols’ “settlement.”
According to FINRA’s BrokerCheck, which is available on FINRA’s website, Eric Nichols has 5 Disclosures, 3 are Customer Disputes. One Customer Dispute alleges unauthorized trading 2009 – 2016, no action taken, a second alleges unsuitability and settled for $95,000. The third was filed this year and alleges unsuitable recommendations and is pending.
Nichols has been in the 22 years in the securities industry and was listed with 3 firms, the most recent firms listed below:
06/01/2009 - 03/13/2019  MORGAN STANLEY - ROLLING HILLS, CA
03/05/2001 - 06/01/2009  CITIGROUP GLOBAL MARKETS INC - ROLLING HILLS, CA
If you’ve had financial losses due to the actions or recommendations of the former Morgan Stanley of Rolling Hills, California, broker Eric Nichols, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis.