A Financial Industry Regulatory Authority (FINRA) arbitration panel recently ordered Morgan Stanley to pay $2.4 million to a group of physicians and their family members. The physicians had accused former Morgan Stanley broker Steven Mark Wyatt of unauthorized and excessive stock-market trading.
According to the lawyer for the physicians who brought the case, Wyatt purchased thinly-traded stocks for his clients that he also owned, and made speculative bets on exchange-traded funds and other securities. Four similar cases against Wyatt have also been settled, and he has been found liable in two additional cases, with two others still pending.
The physicians’ lawyer alleges that Morgan Stanley failed to recognize warning signs, including unauthorized trading. Morgan Stanley discharged Wyatt in 2012. A branch manager and adviser also named in the case still work there.
The Financial Industry Regulatory Authority is the largest independent regulator for all securities firms doing business in the United States, and aims to protect investors by making sure the United States securities industry operates fairly and honestly. FINRA operates the largest arbitration forum in the United States.
Evans Law Firm, Inc. handles securities fraud and investment fraud cases, including SEC and IRS fraud and FINRA arbitration. If you have a securities or investment fraud claim, please contact Evans Law Firm, Inc. at 415-441-8669 or via email at email@example.com.