ustomers Sue Morgan Stanley Citing Misrepresentation
Soreide Law is investigating possible claims of misrepresentation and unsuitability on behalf of customers of Morgan Stanley brokers including David J. Israel, John G. Scott Jr., Neil Ivan Canell, and Susan Fry Mamis.
Morgan Stanley (CRD#: 149777, Purchase, New York) is an investment adviser firm regulated by the Securities and Exchange Commission (“SEC”) and brokerage firm regulated by Financial Industry Regulatory Authority (“FINRA”). Notably, FINRA BrokerCheck shows that Morgan Stanley has made 130 disclosures which consist of allegations and findings against the firm of regulatory infractions and sales practice violations. Additionally, the firm disclosed myriad customer-initiated, investment-related disputes relating to allegations against its own brokers of sales practice violations. Significantly, some of the disputes, including those described below, allege that Morgan Stanley or the brokers were responsible for selling customers unsuitable investments, excessively trading and misrepresenting and omitting investment information.
March 24, 2017 Arbitration Involving Morgan Stanley’s David J. Israel
David J. Israel (CRD#: 1467034, Melville, New York) is a Morgan Stanley financial advisor. He has been employed as a licensed stockbroker with the firm since June 1, 2009. According to David J. Israel ’s FINRA BrokerCheck Report, a customer has contested his sales practices upon filing FINRA Arbitration #17-00695 on March 24, 2017. Apparently, the Morgan Stanley customer’s personal representative alleged that David J. Israel made an unauthorized withdrawal from the customer’s mutual fund account. Because of this, the customer reportedly sustained $200,000.00 in damages. Therefore, the personal representative is seeking payment from Morgan Stanley for the harm David J. Israel allegedly caused. This matter is awaiting a resolution. Previously, David J. Israel worked at Citigroup Global Markets (Jericho, NY), Lehman Brothers Inc. (New York, New York) and E.F. Hutton & Company Inc.
October 11, 2017 Complaint Regarding Morgan Stanley’s John G. Scott Jr.
John G. Scott Jr. (CRD#: 2907088, Greensboro, North Carolina) worked as a securities representative for Morgan Stanley between June 1, 2009 and January 30, 2017. Apparently, Scott Jr. disclosed on his FINRA BrokerCheck Profile that a Morgan Stanley Smith Barney Customer accused him of misrepresentation. In short, the customer filed a written complaint with Morgan Stanley on October 11, 2017. In the complaint, the customer alleged that John G. Scott Jr. misrepresented managed account fees which the customer had to pay. Moreover, John G. Scott Jr. allegedly provided false information about advisory fees from October 2003 through May 2017.
As a result, Morgan Stanley paid the customer $48,000.00 to resolve the matter. However, Morgan Stanley did not admit to being liable for the misrepresentation. Subsequently, Morgan Stanley permitted John G. Scott Jr. to resign after he was alleged to have violated industry standards of conduct, investment-related rules, regulations or statutes. Subsequently, John G. Scott Jr. became a securities representative for Stifel, Nicolaus & Company, Incorporated (Greensboro, North Carolina).
Customer’s September 14, 2018 Complaint About Morgan Stanley Broker Neil Ivan Canell
Neil Ivan Canell (CRD#: 2327790, New York, New York) is a prior registered representative of Morgan Stanley. He is another of Morgan Stanley’s stockbrokers to be accused of misrepresentation with respect to Morgan Stanley’s managed (wrap) accounts. Specifically, on September 14, 2018, a Morgan Stanley Smith Barney Customer filed FINRA Arbitration #18-03245. Notably, that customer stated that from January 2017 to April 2017, Neil Ivan Canell made misrepresentations about investments. Because of this, the customer requested damages of $250,000.00 to remedy the issue. However, Morgan Stanley has not yet resolved the matter. Ultimately, Morgan Stanley terminated Neil Ivan Canell’s employment on April 28, 2017. At this point, Neil Ivan Canell is a J.P. Morgan Securities LLC registered representative in New York, New York.
January 11, 2018 Arbitration Concerning Morgan Stanley’s Susan Fry Mamis
Susan Fry Mamis (CRD#: 718937, Morristown, New Jersey) is a securities representative of Morgan Stanley. She has been working for Morgan Stanley since June 1, 2009. According to her FINRA BrokerCheck Report, a Morgan Stanley customer alleged Susan Fry Mamis excessively traded in the customer’s account. Apparently, the customer brought FINRA Arbitration Claim #17-03474 on January 11, 2018. Susan Fry Mamis was accused of making excessive municipal debt trades in the customer’s account between February 2014 and April 2016. As a consequence, the customer claimed to have suffered harm and since requested an unspecified amount of damages. This arbitration is pending a resolution.
Suffered Losses From Morgan Stanley Because Of David J. Israel, John G. Scott Jr., Neil Ivan Canell, Susan Fry Mamis?
As described by FINRA, misrepresentations consist of untrue representations or omissions which relate to investments. Often times, these misrepresentations or omissions can be significant enough to harm investors. If you have experienced losses from David J. Israel, John G. Scott Jr., Neil Ivan Canell, Susan Fry Mamis or another registered representative of Morgan Stanley who made false or misleading statements about securities that you purchased, 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.