Investors Sue Morgan Stanley For Excessive Trading

Michael Frank Paesano of New York New York a stockbroker formerly employed by Morgan Stanley has been identified in a customer initiated investment related arbitration claim where the customer sought unspecified damages founded on accusations that trades were executed in the customer’s account in excessive amounts between July of 2014 and December of 2016 while Paesano was employed by Morgan Stanley Smith Barney. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01700 (June 3, 2020).

FINRA Public Disclosure indicates that Paesano has been identified in twenty-one additional customer initiated investment related disputes pertaining to allegations of his misconduct while employed by securities broker dealers including Morgan Stanley and UBS Financial Services. Paesano has been referenced in a customer initiated investment related arbitration claim which was settled for $1,200,000.00 in damages supported by accusations of excessive trading by Paesano in the Morgan Stanley customer’s account. FINRA Arbitration No. 17-02736 (Nov. 20, 2018).

On May 9, 2018, another customer initiated investment related arbitration claim involving Paesano’s conduct was settled for $58,000.00 in damages based upon allegations that the customer had been defrauded via purchasing private investments through Paesano during the time that the stockbroker was associated with UBS Financial Services. FINRA Arbitration No. 17-01417. Paesano is also the subject of a customer initiated investment related written complaint that was resolved for $89,774.79 on June 27, 2018 based upon accusations that the customer’s account was subject to bad management and an inappropriate trading strategy which resulted in the customer’s losses between January and December of 2016. The claim alleges that excessive government debt trades were made in the customer’s account by the stockbroker.

On April 29, 2019, another customer initiated investment related arbitration claim in reference to Paesano’s conduct was resolved for $145,000.00 in damages based upon accusations of losses caused by private securities transactions effected by Paesano during the time that he was associated with Morgan Stanley. FINRA Arbitration No. 18-01011. The claim also alleges inappropriate trading of government debt investments by the stockbroker.

Paesano has been identified in another customer initiated investment related written complaint on November 29, 2019 where the customer sought $3,600,000.00 in damages founded on accusations that the customer’s liquidity access lines had been used to obtain funds for the purchase of investments away from Morgan Stanley at Paesano’s direction.

Paesano’s employment with Morgan Stanley was terminated on January 20, 2017.