December 11, 2018

FINRA Bars Justin Amaral From The Securities Industry

AFIN American Finance Trust

Securities Regulator Finds Justin Amaral Churned Investor Accounts

Justin Amaral (CRD#: 4440980, Boston, Massachusetts) is a prior Morgan Stanley securities broker (June 1, 2009 to May 7, 2014) that was referenced in a State of New Hampshire Department of State Bureau of Securities Regulation Consent Order #149777 in which Morgan Stanley agreed to pay three of its customers a total of $483,284.96 and the Bureau a fine of $450,000.00 to settle allegations that Amaral churned the customers’ investment accounts and made unsuitable investment trades.
The findings show that Amaral was initially employed by Citigroup Global Markets Inc., later becoming a Morgan Stanley registered representative through Citigroup’s joint venture with Morgan Stanley. Apparently, while at Citigroup and Morgan Stanley, Amaral was the representative for three New Hampshire investors’ accounts. The first two investors, #1 and #2, a married couple, maintained accounts with Amaral between March 2007 and May 1, 2014. Investors #1 and #2 filed a complaint with the Bureau in 2015 regarding Amaral’s sales practice violations. Because of this, the Bureau began investigating Amaral's activities and Morgan Stanley's purported failure to supervise Amaral.

Regulator Finds Morgan Stanley’s Justin Amaral Made Excessive Trades

The Bureau apparently discovered that Amaral made excessive trades or churned the accounts owned by investors #1 and #2. In addition, the Bureau stated that Amaral made switches of annuities that were not suitable for investors #1 and #2. Because of this, the Bureau stated that Amaral committed violations of several of the state’s securities laws. Not only that, but the Bureau found that Morgan Stanley (or Citigroup) did not supervise Amaral in a reasonable manner.
The Order reported that the Bureau investigated Morgan Stanley’s and Citigroup’s compliance systems that were in effect during the time Amaral made transactions in the account of investors #1 and #2. The Order indicated that the firms’ supervisors deficiently supervised Amaral. Although the firms claimed that their compliance systems functioned properly, the Bureau determined otherwise. That is, Amaral supposedly excessively traded in the investors’ accounts during the time that the firms claimed to be properly supervising Amaral for excessive trading.
The Bureau stated that Amaral’s illegal activities, coupled with the supervisory failures of Morgan Stanley and Citigroup, caused investors #1 and #2 to incur $187,702.91 in losses and fees. In addition, Amaral caused a third investor to incur annuity surrender charges and losses totaling $295,582.05.

FINRA Bars Justin Amaral From The Securities Industry

The Financial Industry Regulatory Authority (“FINRA”) barred Amaral from the securities industry on June 19, 2015, pursuant to a Letter of Acceptance Waiver, Waiver and Consent #: 2014041397201. Amaral accepted FINRA Department of Enforcement’s findings that Amaral chose not to testify in FINRA’s investigation into his possible FINRA Rule violations.
Particularly, the AWC reported that FINRA investigated Amaral in 2015. FINRA Department of Enforcement supposedly requested that Amaral testify about his conduct in the securities industry. However, Amaral declined to cooperate with FINRA’s Rule 8210 request. As a result of failing to appear for testimony, FINRA stated that Amaral committed violations of FINRA Rules 8210 and 2010.

Customers Lodge Complaints About Justin Amaral

Several customers have brought investment-related claims alleging that Amaral committed sales practice violations including misrepresentation and fraud:

June 3, 2014 Complaint

 
On June 3, 2014, a Morgan Stanley Smith Barney customer filed a complaint about Amaral. The customer alleged that there was lack of proper management of the customer’s account, and mutual fund investments had been misrepresented. All things considered, Morgan Stanley settled the customer’s complaint on April 4, 2016 by agreeing to pay the customer $313,500.00.

December 12, 2014 Arbitration

 
A Morgan Stanley customer named Amaral as a respondent in Arbitration #14-03705 dated December 12, 2014. The customers’ causes of action included: failure to supervise; undue influence; unsuitability; violation of federal securities laws; violations of New York General Business Laws; violation of Massachusetts General Laws; violation of the Massachusetts Securities Act; breach of contract; negligence; fraud; and breach of fiduciary duty. After considering the allegations, on December 8, 2015, the Arbitration Panel found Amaral liable for harming the customer. As a result, the Panel ordered Amaral to pay $256,000.00 in compensatory damages and $512,000.00 in punitive damages.

February 24, 2016 Complaint

A customer of Morgan Stanley lodged a complaint with the firm on February 24, 2016 regarding Amaral. Notably, the customer contended that Amaral breached a fiduciary duty to the customer. This sales practice violation was reportedly in reference to the customer’s investments in closed end funds, exchange traded funds and mutual fund investments. After review, Morgan Stanley opted to pay the customer $257,000.00 on February 18, 2018 to settle the matter.

July 25, 2017 Complaint

A Morgan Stanley customer filed a complaint on July 25, 2017. The complaint alleged that Amaral made excessive trades in the customer’s account. Secondly, the customer contended that Amaral put the customer in unsuitable exchange traded funds. Morgan Stanley and the customer agreed on September 18, 2018 for the customer to be paid $100,000.00 to settle the matter.

Lars Soreide Highest Ethical Standard Award 2018
Lars Soreide Highest Ethical Standard Award 2018

If you experienced losses from Justin Amaral or another registered representative of Morgan Stanley, contact Soreide Law Group at (888) 760-6552 and speak with our qualified counsel about a possible recovery of your losses. Soreide Law Group represents clients nationwide and only charges a fee upon recovery of losses.

Recent Posts

March 28, 2024
Al Lovelace In Investor Disputes Over Annuity Misrepresentation

Soreide Law Group is investigating potential investor claims of sales practice violations possibly committed by securities broker Al Stephen Lovelace [CRD: 2393766, Rutherfordton, North Carolina], given the disclosures on FINRA BrokerCheck. Evidently, Lovelace has worked for Equitable Advisors LLC since December 27, 2016, and worked previously at AXA Advisors LLC from October 2, 2008, to […]

March 28, 2024
KAREN CHUNG of WESTERN INTERNATIONAL

Soreide Law Group is conducting an investigation into WESTERN INTERNATIONAL SECURITIES, INC. of Pasadena, California, financial advisor, KAREN TRAN CHUNG (KAREN CHUNG). According to FINRA’s  BrokerCheck, KAREN CHUNG, has been in the securities industry for 20 years and has been listed with 4 firms.  She is currently listed with, WESTERN INTERNATIONAL SECURITIES, INC., 70 S. […]

March 26, 2024
Stifel Fined $400K by FINRA

According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2022 Soreide Law Group, PLLC  |  All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram