TIMOTHY PROUTY Cause You Investment Losses?

Soreide Law Group is evaluating possible claims of suitability, misrepresentation and other sales practice violations against Morgan Stanley Smith Barney securities broker, Timothy Prouty (CRD#: 4928098, Albuquerque, New Mexico). The Financial Industry Regulatory Authority (“FINRA”) shows on Prouty’s FINRA BrokerCheck Report that an investor successfully sued Morgan Stanley over his actions. Here is a summary of the Arbitration:

Timothy Prouty Enrolls Customers In Bad Investment Advisory Program Causing Investors Losses

Two investors came together in filing FINRA Arbitration #16-03473 on November 29, 2016 regarding Timothy Prouty’s activities. Supposedly, Prouty was responsible for placing the customer in Morgan Stanley’s Investment Advisory Program. Notably, this Investment Advisory Program, which affected eight of the customers’ accounts, was problematic and caused the customers to suffer losses. Not only that, but the customers claimed that losses were attributable to bad investments including junk bonds, ETFs and options.
According to the customers, Morgan Stanley was responsible for making unsuitable investments and using deceptive trading practices. Evidently, Morgan Stanley also owed a fiduciary duty to the customers which it violated. Additionally, the customers indicated that Morgan Stanley deficiently and negligently supervised Timothy Prouty’s actions, which caused the customer’s losses.
Eventually, the FINRA Arbitration Panel found Morgan Stanley Smith Barney legally responsible for harming the customers. Because of this, the Panel compelled Morgan Stanley to pay the customers more than $519,000 in compensatory damages. Notably, the Panel refused to expunge reference to the FINRA Arbitration Award on Timothy Prouty’s FINRA BrokerCheck Report.

Have You Suffered Losses By Investing With Morgan Stanley Broker Timothy Prouty?

Experienced losses by investing with Morgan Stanley securities broker Timothy John Prouty, who is also known as Tim Prouty? If you have, 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 firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.