Douglas McKelvey, a former Morgan Stanley broker recently pled guilty to money laundering charges in a Texas Federal Court. These charges arose from his allegedly defrauding Morgan Stanley investors. The Morgan Stanley investors were allegedly McKelvey’s relatives, and he allegedly engaged in unauthorized transactions, transfers, and misappropriation of funds.
When brokers are allowed to perpetrate these schemes, often, the employing firm, may be liable for failure to supervise. It is important for investors, particularly elderly investors, to carefully review their brokerage statements for inappropriate or unauthorized transactions. Unless a broker has discretion, all transactions must be cleared with the client before execution.
“I cannot stress enough that if you have an elderly parent, it is important for you to periodically review their monthly brokerage statements,” said Securities Fraud Attorney Mark Tepper. Mr. Tepper is the former Chief Trial Counsel at the New York Attorney General’s Bureau of Investor Protection and Securities.
Morgan Stanley has also been in the news, recently, for allegedly making unsuitable recommendations to its customers to buy high-risk options programs. In the past, some brokers and advisors have recommended high risk strategies that were unsuitable for investors. If your broker recommended options and you have losses, you may have a claim for damages against your broker.
How to Contact an Attorney Who Will Fight for the Recovery of Your Losses?
The Mark Tepper law firm has a long record of success in cases of recovery for investors, including cases involving brokerage firms that failed to supervise their brokers.
If you have an account with Morgan Stanley or any other brokerage firm and have questions about unsuitable trading and/or losses in your account, you can get a FREE evaluation of your claim by emailing attorney Mark A. Tepper at askmark@marktepper.com, or telephone him at 954-704-2310.