Morgan Stanley Forced to Pay Ex-Broker $2.4 Million For Defamation

Stoltmann Law Offices continues to investigate Dale Cebert, whose former firm, Morgan Stanley Smith Barney was handed down an award by a Financial Industry Regulatory Authority (FINRA) arbitration panel. Morgan Stanley accused Cebert of breach of contract for failure to repay promissory notes. Cebert accused the firm of defaming him on inaccurate regulatory reports and through discussions his former colleagues held with customers. The arbitration panel awarded Cebert $2.4 million and required Morgan Stanley to alter his U-5 Form it filed with regulators saying he was “terminated without cause” and to delete its assertion that he was fired for conducting outside business. The panel assessed $500,000 of punitive damages against Morgan Stanley for a “flawed internal investigation” that it acted upon with “reckless disregard for its accuracy” and for communicating with Cebert’s customers “in at least a grossly negligent manner (if not with a self-serving, malicious motive.)”

FOX Business
The Wall Street Journal
FOX News Channel
USA Today
abc NEWS
Contact Information