Articles Tagged with Morgan Stanley Co

If you or someone you know invested money with Richard Shotz, a former broker with Morgan Stanley, you may be able to recover your investment losses on a contingency fee basis in the Financial Industry Regulatory Authority (FINRA). According to a Letter of Acceptance, Waiver and Consent (AWC) with FINRA, Mr. Shotz was accused of engaging in an unsuitable pattern of short-term trading of unit investment trusts (UITs) in 486 customer accounts. Shotz allegedly repeatedly recommended that the customers purchase UITs and then sell these products well before their maturity dates. The majority of them had maturity dates of at least 24 months and carried sales charges. Shotz continually recommended that his customers sell their UIT positions less than a year after purchase. The average holding period for these was 143 days. On 1,200 occasions, Shotz recommended that his customers use the proceeds from the short-term sale of a UIT to purchase another UIT with identical investment objectives. For this, he was suspended from the industry for four months and fined $7,500.

A broker must take into account a customer’s age, net worth, investment objectives and investment risk tolerance before recommending or selling an investment and must do his due diligence on the product. If he does not, his brokerage firm may be liable for losses on a contingency fee basis. UITs are not suitable for every customer because they can be illiquid and risky investments. You may be able to bring a claim against Morgan Stanley for not reasonably supervising its brokers.

Richard Shotz was previously registered with Raymond James in St. Petersburg, Florida from July 1987 until February 1994, Citigroup Global Markets in Ormond Beach, Florida from February 1994 until September 2008, Morgan Stanley & Co. Inc. in Ormond Beach from August 2008 until June 2009 and Morgan Stanley in Ormond Beach from June 2009 until October 2015. He is currently registered with Wells Fargo in Daytona Beach, Florida and has been since October 2015. He has five customer disputes against him, alleging misrepresentations, unsuitable investments, and other things, all against securities laws and internal firm rules. This is according to his public, online BrokerCheck report with FINRA.

AdobeStock_90383187-1-300x194If you were an investor with Michael Fitz-Gerald and Morgan Stanley, you may be able to recover your investment losses by suing Morgan Stanley in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis, which means we only make money if you recover yours. We are Chicago-based securities attorneys who bring claims against firms like Morgan Stanley who fail to properly supervise their brokers. The call to us is free with no obligation at 312-332-4200. Please call today for a consultation with one of our attorneys. There is a statute of limitations on most cases.
Fitz-Gerald was accused of making investments in energy stocks since 2014 that were unsuitable and did not specify damages. Another claim alleged that he failed to diversify a portfolio. These are against securities laws. A broker must only recommend those investments that are suitable for the investor by taking into account his age, net worth, investment objectives and investment sophistication. If he does not, his firm may be liable for those losses. Energy stocks are not typically suitable for all investors, as they tend to be highly illiquid and risky.
According to his online FINRA BrokerCheck report, Fitz-Gerald was previously registered with Birr, Wilson & Co., BWS, Birr Wilson, Inc., UBS and Morgan Stanley & Co. Inc. in San Francisco, California from November 2008 until June 2009. He is currently registered with Morgan Stanley in San Francisco and has been since June 2009. He has five customer disputes against him, one of which is currently pending.

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