Investors Take Aim At MICHAEL PAESANO

Morgan Stanley's Michael Paesano Allegedly Gave Bad Advice To Clients

Soreide Law Group is investigating potential investor claims of sales practice violations by broker Michael Paesano [CRD#: 1557229, New York, New York]. Notably, Financial Industry Regulatory Authority (“FINRA”) BrokerCheck reports that approximately 21 clients disputed the securities broker, who worked with Morgan Stanley from May 2, 2011 to January 20, 2017. Apparently, clients of Morgan Stanley suggest that Paesano made unsuitable recommendations and caused their losses. The following contains a summary of some alarming disclosures concerning Paesano:

Michael Paesano Allegedly Gives Bad Advice To Morgan Stanley Clients

Evidently, on November 29, 2019, Morgan Stanley clients brought a formal dispute in reference to Michael Paesano. Namely, the clients contended that Paesano urged them to borrow from their Morgan Stanley Liquidity Access Line to make outside investments. It appears that these investments consisted of stocks and other securities which generated losses. For this reason, the client asked for $3,600,000 in compensation from Morgan Stanley or Paesano. It appears that this complaint is pending a resolution.

Paesano Supposedly Makes Excessive Trades In Morgan Stanley Client’s Account

Apparently, on March 16, 2018, a Morgan Stanley Smith Barney client filed FINRA Arbitration #: 18-01011 about Michael Paesano. Apparently, the client asserted that Paesano sold away from the securities firm without its knowledge or consent from 2013 to 2016. Allegedly, the securities broker also made excessive trades. It appears that the client experienced losses by purchasing government bonds and private securities transactions because of Paesano. As a result, on April 29, 2019, Morgan Stanley Smith Barney resolved this issue through making a $145,000 payment to the client.

Morgan Stanley Client Indicates That Michael Paesano Mismanaged Account

Evidently, a client of Morgan Stanley Smith Barney took issue with Paesano through a complaint dated March 13, 2018. Mainly, the client stressed that Paesano failed to manage the client’s account according to an investment agreement. Not only that, but the broker was allegedly deceptive by failing to tell the client about changes to the strategy. Finally, the client alleged that Paesano’s excessive trading caused losses. Because of this, on June 27, 2018, Morgan Stanley paid the client $89,774.79 to put this investment dispute to rest.

Morgan Stanley Wealth Management Disaffiliates With Paesano

Apparently, Morgan Stanley Wealth Management disaffiliated with Paesano on December 21, 2016. Allegedly, Paesano made discretionary trades in a client's account without written permission from the client or Morgan Stanley. Also, the securities broker allegedly used a potentially inappropriate investment strategy involving corporate debt trading in client accounts.

Did Morgan Stanley Securities Broker Michael Paesano Sell You Bad Investments?

Have you experienced losses by investing with Michael Paesano? 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 firms and brokers like Paesano.