An arbitration panel for the Financial Industry Regulatory Authority (“FINRA”) has made findings against Morgan Stanley Smith Barney, LLC and entered an award against the firm of over $500,000 in favor of a couple who filed claims against the firm alleging that Morgan Stanley sold them unsuitable investments.

The couple alleged that their Morgan Stanley and its advisor, Timothy J. Prouty, made unsuitable investments, engaged in deceptive trade practices, breached their fiduciary duties, made negligent misrepresentations, breached their contracts with the claimants, and that Morgan Stanley failed to adequately supervise the broker.

The claims were based on losses across eight accounts which suffered losses in junk bonds, ETFs that invested in derivatives and futures contracts, and option contracts.

A panel of FINRA arbitrators found in favor of the couple and against Morgan Stanley, awarding $519,089 to compensate the couple for their losses, plus 8.75% in post-judgment interest.

If you or someone you know lost money as a client of Timothy Prouty or Morgan Stanley due to unsuitable, misrepresented, or unauthorized transactions, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.