A panel of arbitrators of the Financial Industry Regulatory Authority (“FINRA”) has entered a unanimous decision against Morgan Stanley and its broker, Michael Lee Canney, of Des Moines, Iowa.

The complaint was filed by a law firm’s defined benefit employee plan, alleging that Morgan Stanley and Canney breached their fiduciary duties, were neglectful, breached their contract, made negligent misrepresentations, constructive fraud, and supervisory failures.

The allegations were that the respondents mismanaged the plan’s portfolio by failing to implement a suitable investment strategy and by overconcentrating the portfolio in a single sector of the S&P. The plan alleged that its losses exceeded $667,000. The panel unanimously awarded the claimant $415,888 in compensatory damages, plus $36,500 in expert witness fees, $2,000 in costs, and $425 for the non-refundable portion of the claimant’s filing fee.

At the Frankowski Firm, we have experience handling claims on behalf of investors who have lost money as a result of unsuitable and manipulative investment practices. If you or someone you know has lost money or was a victim of Morgan Stanley, Michael Lee Canney, or otherwise sold an investment which was misrepresented to you or unsuitable for you, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.