Were you the victim of stock fraud with Morgan Stanley & Co. LLC broker Pawan Passi (CRD# 5527731)? He was registered with Morgan Stanley & Co. LLC in New York, New York, from 2010 to 2022, when he was terminated regarding, “Allegations regarding the representative’s communications about impending block trades and client activity.” He was formerly the head of Morgan Stanley & Co. LLC’s Equity Syndicate Desk in the Americas, which involved large blocks of stock that the investment banking firm purchased from investors in such securities.
In January 2024, the Securities and Exchange Commission (SEC) barred the broker and sanctioned him to pay $250,000 for his participation in the offering of a penny stock. They brought public administrative and cease-and-desist proceedings against Pawan Passi related to fraudulent conduct. From at least June 2018 through August 2021, he “disclosed to certain buy-side investors non-public, potentially market-moving information, concerning impending “block trades” that the firm had been invited to bid on or was in the process of negotiating with the selling shareholders.” The SEC reported that “Those buy-side investors used such information to “pre-position”-or take a short position in-the stock that was the subject of the upcoming block trade.” It continued, “Such disclosures by Passi violated the selling shareholders’ expectations of-and, in certain instances, express requests for-confidentiality conveyed to the Syndicate Desk, representations of confidentiality made by the Syndicate Desk, and/or Morgan Stanley’s policies regarding the treatment of confidential information.” He was charged with securities fraud.
Pawan Passi Customer Complaints
He has been the subject of one customer complaint, according to his CRD report:
April 2022. “Claimants allege, inter alia, misrepresentation with respect to block trading 2021.” The case is currently pending. The complaint was regarding common and preferred stocks. The case was settled for $4,224,374.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley & Co. LLC may be liable for investment or other losses suffered by Pawan Passi’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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