Greedy Trial Lawyer
Morgan Stanley "Repositions" Client Into Huge Losses
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Was it repositioning or plundering?
Morgan Stanley has been ordered to pay $850,000 to an elderly South Florida customer who lost more than $370,000 through unauthorized trades and the brokerage firm's failure to supervise a broker in its Plantation office."I wanted investments just to be able to be retired and have a nice income to live on," said Jordan Weinerman, a retired builder from Philadelphia. "I'm not a kid; I'm 81 years old and I can't go back to work, you know?"
A National Association of Securities Dealers' arbitration panel on Friday found that Morgan Stanley had breached its fiduciary duty and was liable for negligent supervision. It awarded Weinerman $600,000 in compensatory damages and $250,000 in punitive damages.
Weinerman was a long-term Morgan Stanley customer who shifted his accounts to Morgan Stanley's Plantation office when he moved to Aventura in the 1990s, said his attorney, Jeffrey Erez, of Sonn & Erez in Fort Lauderdale.
"They repositioned the entire account very quickly," into Morgan Stanley's own products, Erez said. "We proved the broker made more than $100,000 in commissions while doing this."
Repositioning - is that the same as breaking into the safe?
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