The Frankowski Firm is investigating potential claims against former Morgan Stanley Smith Barney broker Timothy Thomas Gibbons of New Orleans, based on allegations that in 2014 he made unsuitable recommendations to elderly investors, advising them to place high percentages of their accounts (in one instance 79% of a customer’s portfolio) in a single high-risk energy stock.
The Financial Industry Regulatory Authority (“FINRA”) submitted a letter of Acceptance, Waiver and Consent making findings that Mr. Gibbons’ recommendations were unsuitable for his elderly customers based on their age, risk tolerance, investment objectives, and financial circumstances. Gibbons’ recommendations resulted in a collective loss of over $960,000 in the five accounts forming the basis of FINRA’s allegations.
As a result of its findings, FINRA imposed an eighteen-month suspension of Mr. Gibbons’ FINRA association, fined Mr. Gibbons $20,000 and ordered that he pay partial restitution to his clients in the amount of $716,749.78. Mr. Gibbons accepted and consented to FINRA’s findings without admitting or denying them.
Morgan Stanley Smith Barney terminated Mr. Gibbons’ association with the firm and his registrations with FINRA on April 22, 2015. On November 19, 2G015, Morgan Stanley amended its termination notice to disclose a customer lawsuit against Mr. Gibbons.
If you or someone you know lost money in a Morgan Stanley account as the result of unsuitable or misrepresented investments recommended by Timothy Thomas Gibbons, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.