ustomers Allege Against Morgan Stanley Sold Unsuitable Investments
Morgan Stanley (CRD#: 149777, Purchase, New York) is a Financial Industry Regulatory Authority (“FINRA”) member brokerage firm and Securities and Exchange Commission (“SEC”) registered investment adviser firm. Evidently, Morgan Stanley has been party to forty-three regulatory events regarding its apparent violations of investment-related regulations or rules. At least eighty-three FINRA arbitration awards have been entered against Morgan Stanley for causing investors harm. In addition, Morgan Stanley registered representatives, including Michael Jeffrey Korsten, Theodore Grimes Hart and William Ashley Bridgers Jr., have disclosed customer-initiated investment-related disputes. Those customers’ disputes, summarized below, contain allegations of sales practice violations including unsuitable recommendations and account mismanagement.
September 2, 2015 Arbitration Concerning Morgan Stanley, Michael Jeffrey Korsten
Michael Jeffrey Korsten (CRD#: 2112540, Coral Springs, Florida) is a past Morgan Stanley registered representative. Apparently, he was employed at the firm between June 1, 2009 and May 15, 2017. According to Korsten’s FINRA BrokerCheck Report, his alleged misconduct is referenced in a FINRA Arbitration #15-02199, filed on September 2, 2015. Notably, the customer alleged that Korsten made unsuitable investment recommendations. As stated in the complaint, Korsten gave bad advice regarding the liquidation of the customer’s individual retirement account and establishment of a margin loan. Supposedly, the unreasonable recommendations pertained to the customer’s investments in mutual funds, stock and over-the-counter equities. All things considered, Morgan Stanley paid the customer $65,000.00 to resolve the claim of unsuitability. Korsten became an Ameriprise Financial Services, Inc. registered representative on May 12, 2017.
January 17, 2018 Complaint Involving Morgan Stanley, Theodore Grimes Hart
Theodore Grimes Hart (CRD#: 1766759, Washington, DC) is employed as a general securities representative of Morgan Stanley. Hart disclosed on his FINRA BrokerCheck Report that a Morgan Stanley customer contested his sales practices in a complaint filed with the firm on January 17, 2018. In summary, Hart reportedly failed to appropriately manage the customer’s investment account. Additionally, the customer alleged that Hart over-concentrated the customer’s assets in oil & gas investments. Transactions apparently took place between June 2015 and April 2016. Because of this, the customer’s investments in exchange traded funds and corporate debt products were seemingly inappropriate. Although the customer’s allegations may be true, the matter has not been resolved.
June 25, 2018 Complaint Concerning William Ashley Bridgers Jr.
William Ashley Bridgers Jr. (CRD#: 30367, Charleston, South Carolina) is currently employed at Morgan Stanley as a general securities representative. His employment with the firm commenced on June 1, 2009. As has been noted in Bridgers’ FINRA BrokerCheck Report, a customer lodged a dispute on June 25, 2018 regarding Bridgers’ sales practices. Apparently, the Morgan Stanley customer claimed that it was not suitable for the customer to be placed in energy stocks between June 2012 and September 2014. Accordingly, on June 25, 2018 Morgan Stanley agreed to pay the customer $147,453.00 to settle the matter. It is important to note that the customer indicated that Bridgers or the firm was responsible for other misconduct; however, Bridgers failed to disclose that information on his FINRA BrokerCheck profile.
Investors who have incurred losses from Morgan Stanley brokers including Michael Jeffrey Korsten, Theodore Grimes Hart and William Ashley Bridgers Jr. are encouraged to contact Soreide Law Group at (888) 760-6552 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses. We represent clients on a contingency fee basis and advance all costs.