Investors Sue Morgan Stanley For Unsuitable Corporate Bond Sales
Christopher James Butler of Woodland Hills California a stockbroker currently registered with Morgan Stanley is the subject of a customer initiated investment related arbitration claim where the customer sought $395,579.00 in damages supported by allegations that corporate bonds held in the customer’s account were unsuitable. Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-01267 (May 16, 2017).
FINRA Public Disclosure reveals that Butler has been identified in seven additional customer initiated investment related disputes containing accusations of his misconduct while employed with Prudential Securities Incorporated and Morgan Stanley. Specifically, Butler is the subject of a customer initiated investment related arbitration claim in which the customer was awarded $25,000.00 in compensatory damages based upon Butler being found liable on the customer’s claims including unauthorized trading, unsuitability, breach of fiduciary duty and fraud relating to the stockbroker’s use of margin in the customer’s Prudential Securities Inc. account.
Another customer initiated investment related arbitration claim involving Butler’s conduct was resolved for $23,000.00 in damages founded on allegations of false or misleading statements concerning over-the-counter equities and corporate bonds during the period in which the stockbroker was associated with Morgan Stanley. FINRA Arbitration No. 15-02349 (Sept. 27, 2016). Butler is also referenced in a customer initiated investment related arbitration claim which was settled for $80,000.00 in damages based upon accusations that he sold the customer bad energy bonds which caused the customer to experience unwarranted losses. FINRA Arbitration No. 16-02492 (Feb. 14, 2017).
Moreover, a customer initiated investment related arbitration claim concerning Butler’s activities was resolved for $90,000.00 in damages supported by allegations that between April of 2015 and June of 2016, transactions executed by the stockbroker failed to be suitable given the customer’s objectives for investing, tolerance for risk or overall circumstances. FINRA Arbitration No. 16-01880 (Oct. 31, 2017).
Butler has been employed by Morgan Stanley since January 15, 2010.