Barred Broker Mike Carter Involved In Investors’ Misappropriation Disputes

Soreide Law Group is reviewing possible investor claims against Michael “Mike” Barry Carter (CRD#: 3232017, McLean, Virginia). Evidently, Financial Industry Regulatory Authority (“FINRA”) BrokerCheck indicates that four investors brought disputes about the financial advisor, who worked for Morgan Stanley from 2011 to 2019. Notably, these disputes indicate that Carter misappropriated their funds which caused them losses. Also, FINRA barred Carter from acting as a broker for allegedly stonewalling an investigation. Here’s more:

FINRA Issues Pair Of Sanctions To Mike Carter

Apparently, on September 9, 2019, FINRA indefinitely barred Mike Carter from being a securities broker for violating FINRA Rules 8210 and 2010. Evidently, FINRA received an external tip in regard to Carter’s purported misappropriation of funds. In fact, Morgan Stanley disaffiliated with Carter because of those allegations. But when FINRA asked Carter for documents and information, he refused to comply. Significantly, FINRA asked Carter twice for documents and information in 2019. Carter’s lawyer relayed to FNIRA that Carter got the message but refused to respond.

Also, on February 28, 2020, FINRA issued a separate suspension to Mike Carter, this time because he did not pay a FINRA Arbitration Award. The financial industry watchdog reports that the suspension continues until the payment Is made or discharged.

Morgan Stanley Client Indicates That Carter Misappropriated Funds

Evidently, on November 15, 2019, a Morgan Stanley client filed an investment dispute about Mike Carter. Mainly, the client made allegations of Carter’s misappropriation from October 2012 to July 2019. On February 28, 2020, Morgan Stanley opted to settle this matter through making a $1,300,000 payment to the client.

Mike Carter Allegedly Makes Unauthorized Withdrawals From Client’s Account

A client of Morgan Stanley Smith Barney contested Mike Carter’s sales practices through a dispute dated October 18, 2019. Particularly, the client contended that he did not authorize Carter to withdrawal funds from the client’s account. It appears that Carter’s unauthorized withdrawals caused the client losses. For this reason, on October 18, 2019, Morgan Stanley settled this matter by compensating the client in the amount of $3,193,500.

Client Indicates Carter’s Liquidity Access Line Withdrawals Were Unauthorized

Also, on September 3, 2019, Morgan Stanley received a complaint about Mike Carter. Like the other clients, this client indicated that Carter made unauthorized transactions. Specifically, a POA indicated that the client never gave authorization for the creation of a Liquidity Access Line. Carter supposedly withdrew funds without the client’s knowledge or approval. It appears that the unauthorized transactions took place from December 2017 to May 2019. For this reason, on September 3, 2019, Morgan Stanley agreed to pay $1,357,841.68 to the client to settle.

Losses From Broker Mike Carter?

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Have you experienced losses by investing with broker Mike Carter? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers like Carter and his employing brokerage firms.