Morgan Stanley Hammered with Punitive Damages

ccording to a Financial Industry Regulatory Authority (FINRA) Award, Morgan Stanley was accused of breach of fiduciary duty, wrongful conduct, constructive fraud, fraud by misrepresentation and omission, breach of written contract, failure to supervise and violation of state and federal securities laws. It was alleged that a Morgan Stanley agent ran a ponzi scheme, took personal loans and recommended unsuitable investments, including the Jackson National Life annuity. For this, Morgan Stanley was ordered to pay compensatory damages in the amount of $150,000 and $510,000, punitive damages in the amount of $37,500 and $127,500, and interest of $187,000 at the rate of 5% per annum accruing from May 20, 2014 through the date of payment on the award of $187,500.

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