Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Michael Carter (Carter) was discharged by his employer after being accused of misappropriating client funds. According to BrokerCheck records, Carter is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Morgan Stanley. In addition, Carter disclosed three customer complaints related to misappropriating funds. If you have been a victim of Carter’s alleged misconduct our firm may be able to assist you in recovering funds.
In July 2019 Morgan Stanley discharged Carter after alleging that he was terminated after allegations of misappropriation of funds occurred.
In September 2019 FINRA filed a regulatory action alleging that Carter consented to the sanction and findings that he failed to provide documents and information requested by FINRA during the course of an investigation after FINRA received a tip relating to allegations of misconduct made by Morgan Stanley.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.