Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Allen Hershberg (Hershberg) has been accused by his former employer of engaging in business investment activities including undisclosed outside business activities (OBAs) and private securities transactions. According to records kept by The Financial Industry Regulatory Authority (FINRA), Hershberg was employed by Morgan Stanley Smith Barney, LLC (Morgan Stanley) at the time of the activity. If you have been a victim of Hershberg’s alleged misconduct our firm may be able to assist you in recovering funds.
Hershberg has been subject to regulatory action by FINRA and termination by Morgan Stanley. In July 2022, Morgan Stanley alleged that it had “Concerns Investigation regarding the representative’s unapproved outside real estate investments, as well as concerns regarding the representative’s recommendation of those same outside real estate investments to Firm clients and others, including through limited liability companies the representative created.”
With respect to the FINRA action, the regulator found that Hershberg consented to sanctions and findings that that he failed to provide documents and information requested by FINRA in connection with its investigation into allegations made in a Form U5 filed by his member firm. FINRA found that Morgan Stanley permitted Hershberg to resign due to concerns regarding his unapproved outside real estate investments, as well as concerns regarding his recommendation of those same outside real estate investments to firm clients and others, including through limited liability companies he created.
A review of Hershberg’s disclosed OBAs includes Ian Media Networks Advisor, CPV, LLC, Oak Park, Worthfield 1 LLC, and Dorchester 1 LLC. In addition, Hershberg discloses that he engages in rental property ownership and it appears that some of these entities are related to that business.