Lawyer: NASD Fines Morgan Stanley $452,034 For Breach
11/18/2004
A National Association of Securities Dealers arbitration panel ordered Morgan Stanley (MWD) to pay investor Joacy Silva $452,034 for alleged breach of fiduciary duty and allegedly failing to supervise one of its employees. In a press release Thursday, Aidikoff & Uhl, a law firm representing Silva said the self-regulating brokers’ guild charged Morgan Stanley for the amount of Silva’s money lost by Rick Schoen, an employee in Morgan Stanley’s Beverly Hills, Calif. office, plus attorney’s fees.
The law firm said Schoen made trades without contacting Silva while she was out of the country for 29 months. The firm also said Morgan Stanley concentrated her portfolio in “unsuitable” and “speculative” technology and telecommunications stocks on margin.
The finding represents a finding of 100% responsibility on the part of Morgan Stanley.
Neither Morgan Stanley nor the NASD were immediately available for comment.