Securities Lawyers Blog
The securities lawyers at Gana Weinstein LLP are investigating a customer complaint against Morgan Stanley broker Theodore Crowley (Crowley).
According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), Theordore Crowley (Crowley) has been subject to a customer complaint.
In June 2012, a customer alleged that from 2008 through 2011, he was charged excessive markups and markdown on the purchase and sale of municipal bonds by Crowley. This dispute settled for $465,000.
In April 2017, the Internal Revenue Service (IRS) filed a tax lien against Crowley for $611,984.42.
The term “securities fraud” covers a range of illegal activities involving the deception of investors or the manipulation of the financial markets. Fraud includes false representations, unauthorized trading, value manipulation, and Ponzi schemes. Investors are protected against fraudulent securities activities by several different civil laws.
First, the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.) and Rule 10b-5 protect investors against deceptive and manipulative acts in the purchase or sale of securities. This sweeping legislation is the cornerstone of federal securities laws. Rule 10b-5 makes it unlawful to employ a device or scheme to defraud, to make any untrue statement of material fact or omit to state a material fact not misleading, or to engage in any practice that would operate as a fraud.
Second, the vast majority of states have passed “blue sky” laws that regulate the securities industry in each state and protect investors. Even if a state has not enacted specific securities laws, an investor can still pursue a claim under theories of common law fraud.
Third, investors can pursue claims against a broker or a brokerage firm under the rules of the Financial Industry Regulatory Authority (FINRA), including its anti-fraud provisions. The FINRA rules have several provisions pertaining to fraud including IM-2310-2 (covering churning, false accounts, unauthorized trading, and misuse of customer funds) and Rule 2210 (covering communications with the public).
Crowley has 10 years of securities experience and has been registered with Morgan Stanley since 2009. Previous registrations include Morgan Stanley & Co., Morgan Stanley DW Inc., SunAmerica Securities, Franklin-Lord Incorporated, Kemper Securities Group, Boettcher & Company, Shearson Lehman Hutton Inc., EF Hutton & Company Inc., and Hutchison Financial Corporation.
The dedicated attorneys at Gana Weinstein LLP represent investors who have suffered losses due to securities fraud. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.