Friday, March 25, 2016

Whistleblower Suit Filed Against Morgan Stanley

English: By Richard Wheeler (Zephyris) 2007.
A former risk officer at Morgan Stanley Smith Barney LLC has filed suit claiming he was fired for reporting a variety of infractions by the firm's registered representatives, including the churning of preferred securities by a star broker the firm recruited last year from rival Bank of America Merrill Lynch.

Chief among the claims was that late last year, he discovered that one of the firm's newest wealth managers “was flipping preferred securities in a manner that was generating tens of thousands of dollars in commissions but causing losses or minimal gains for his clients and exposing (them) to unnecessary risks,” according to the complaint, which was filed in U.S. District Court in the Southern District of New York.

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