Massachusetts Fines Morgan Stanley for Lack of Broker Oversight Case

Date : 10/30/2019 @ 4:02PM
Source : Dow Jones News
Stock : Morgan Stanley (MS)
Quote : 52.42  -1.33 (-2.47%) @ 12:59AM
Morgan Stanley share price Chart
After Hours
Last Trade
Last $ 52.35 ▼ -0.07 (-0.13%)

Massachusetts Fines Morgan Stanley for Lack of Broker Oversight Case

Morgan Stanley (NYSE:MS)
Historical Stock Chart

6 Months : From Aug 2019 to Feb 2020

Click Here for more Morgan Stanley Charts.

By Dave Sebastian


The Massachusetts' state secretary ordered Morgan Stanley (MS) to pay $382,500 for allegedly not supervising one of its broker-dealer agents who hiked commission fees on investor accounts through excessive trading in a practice known as churning.

Massachusetts Secretary William Galvin claimed four Massachusetts investors lost money through their trades executed by Justin Amaral, a former Morgan Stanley agent. The state fined Morgan Stanley $200,000 and is also ordering the bank to pay $182,500 to the four investors.

Mr. Galvin's office alleged Morgan Stanley failed to supervise Mr. Amaral's trading activity, and didn't investigate his activities after a customer's accountant filed a complaint in April 2014.

According to the order, Morgan Stanley allegedly started investigating Mr. Amaral's trading activities after a customer's accountant found that Mr. Amaral was designated as the executor of an estate and as a beneficiary of the customer's will. Mr. Amaral allegedly hadn't disclosed such a relationship to Morgan Stanley, according to Mr. Galvin's office.

"We are pleased to resolve this matter which arose out of conduct from a financial advisor whose employment ended in May 2014," Morgan Stanley said in a statement.

The Financial Industry Regulatory Authority Inc. has barred Mr. Amaral from acting as a broker. Attempts to reach Mr. Amaral weren't immediately successful.


Write to Dave Sebastian at


(END) Dow Jones Newswires

October 30, 2019 11:47 ET (15:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Latest MS Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:us D:20200224 00:06:55