What You Must Know
- An arbitration panel ordered Morgan Stanley to pay $160,000 in damages to a consumer who alleged the agency was responsible of negligence and failing to oversee an ex-rep.
- The ex-rep was ordered to pay the identical quantity. Each he and Morgan Stanley had been additionally ordered to pay the consumer $10,000 in authorized charges.
- Merrill Lynch, for which the ex-rep beforehand labored, was additionally named within the grievance however was not discovered liable.
Morgan Stanley should pay $160,000 in compensatory damages to a consumer who alleged the agency was responsible of negligence and failing to oversee a former dealer over the buying and selling of unspecified securities within the consumer’s account, in accordance with an arbitration award posted on FINRA’s web site on Thursday.
A 3-person panel of public arbitrators in Phoenix, Arizona, agreed that the wirehouse was chargeable for these actions however not for different allegations made by the consumer.
The panel additionally ordered the previous Morgan Stanley dealer, Francisco Javier Valenzuela, to pay $160,000 to the consumer, Carlos Ramon Tapia Sanchez, saying he was chargeable for misrepresentation, manipulation and fraud. He served as a dealer for Morgan Stanley from 2015-2018, in accordance with FINRA’s BrokerCheck web site. He’s not presently registered as a dealer or advisor, in accordance with BrokerCheck.
Valenzuela and Morgan Stanley are additionally “collectively and severally chargeable for and shall pay” the consumer $10,000 in attorneys’ charges, pursuant to the FINRA Dispute Decision Companies Arbitrator’s Information.
The claimant had additionally named Merrill Lynch as a respondent. Valenzuela had served as a dealer for that firm from 2010-2015, in accordance with BrokerCheck. However the arb panel didn’t order Merrill to pay the consumer something.
Morgan Stanley and Merrill declined to touch upon Friday.