AMES S POLESE (CRD#: 2636427) and CORNELIUS PETERSON (CRD#: 5769919), both former Morgan Stanley financial advisors, pleaded guilty to fraud and conspiracy, according to the US Attorney in Boston. Polese also pleaded guilty to identity theft.
Prosecutors say the two allegedly used client money for their own personal use. According to court records, Polese and Peterson used one client’s account to make an unauthorized $100,000 investment in a wind farm project in 2014. They allegedly used $400,000 from another client’s account for supporting a letter of credit for the wind farm project in 2015. According to the court records, the pair is also accused of making an improper $350,000 investment in real estate in 2016 also using client money. Polese allegedly diverted funds to cover his children’s college fees and additional expenses.
Morgan Stanley says in a statement that they fired the pair after they had uncovered the two brokers’ scheme and reported them to regulators and law enforcement.
According to the plea agreements, the prosecutors will recommend a sentence of six years and three months in prison for Polese and that they wouldn’t appeal a sentence of less than two years and three months for Peterson.
FINRA has barred both JAMES S POLESE and CORNELIUS PETERSON from acting as a brokers or otherwise associating with a broker-dealer firm.
According to FINRA’s BrokerCheck, CORNELIUS PETERSON has been in the securities industry for 5 years and has been only with the following firm:
08/16/2011 – 07/26/2017 MORGAN STANLEY – BOSTON, MA
JAMES S POLESE has been in the securities industry for 21 years and has been with 4 firms, the 2 most recent listed below:
05/14/2010 – 07/26/2017 MORGAN STANLEY – BOSTON, MA
08/13/2004 – 05/20/2010 UBS FINANCIAL SERVICES – BOSTON, MA
If you were a client of either JAMES S POLESE or CORNELIUS PETERSON formerly with Morgan Stanley in Boston, and you experienced losses due to their actions or recommendations, call Soreide Law Group and speak to a securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA. We operate on a contingency fee basis, no fee if no recovery.