Investors Accuse Morgan Stanley Stockbroker Of Unauthorized Trading

Arbitration Law Firm

Robert N. Newman of Los Angeles California a stockbroker currently registered with Morgan Stanley is the subject of a customer initiated investment related written complaint on May 20, 2019 where the customer sought $89,400.00 in damages founded on accusations that exchange traded funds and stocks had been traded by the stockbroker between 2005 and July of 2016 without the customer’s knowledge or consent.

Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Newman is referenced in two more customer initiated investment related disputes pertaining to allegations of his violative conduct while employed with Morgan Stanley. In particular, on December 24, 2015, a customer filed an investment related complaint involving Newman’s activities in which the customer requested $10,000.00 in damages based upon accusations that the customer had been placed into closed end fund products which failed to be appropriate for the customer given the customer’s objectives for investing, tolerance for risk or other investment circumstances.

Also, Newman is referenced in a customer initiated investment related written complaint on February 22, 2016 where the customer sought unspecified damages supported by allegations that false or misleading statements had been made by the stockbroker with respect to a variable annuity that Newman sold to the customer.

FINRA Public Disclosure additionally confirms that Newman has been terminated from at least one securities broker dealer for misconduct. In fact, Newman was terminated by UBS Financial Services founded on accusations of Newman posing as a customer to get information about the customer’s investments; and for Newman neglecting to cooperate with the firm during the time that he was under investigation.

Also, Newman has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity supported by findings that Newman engaged in unauthorized trading. Letter of Acceptance Waiver and Consent No. 2017056742401 (May 10, 2018). According to the AWC, trades were executed by Newman on a discretionary basis in the account of a Morgan Stanley customer who did not provide Newman with written authorization. Newman’s trading was also disallowed as the securities broker dealer did not classify the account as discretionary. FINRA found Newman’s conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).

Newman has been employed by Morgan Stanley since June 1, 2009.