Erez Law is currently investigating Morgan Stanley broker Richard George (CRD# 1890200) regarding unsuitable investment recommendations. George has been registered with Morgan Stanley in Chicago, Illinois since 2012.
According to public records, a former client of George suffered significant investment losses during a bullish market between 2018 to 2019. It is alleged that George recommended his client invest in Active Bear ETF, PIMCO Stock Plus SH, and Leuthold Grizzly Short Fund. It is alleged that George believed the stock market would collapse in 2018 or 2019, and he believed he would time the market and take advantage of the decline. According to public records, George recommended his client invest in short mutual funds, which invested in complex options strategies that move in the opposite direction of the index they mirror.
Instead, George placed unsuitable bets on the direction of the market, which was a strategy intended for sophisticated investors. These unsuitable bets on the market were unsuitable for the client and caused her to suffer losses during a period when she should have seen investment gains.
George has been the subject of one customer complaint, according to his CRD report:
December 2019. “Claimant alleges, inter alia, unsuitability with respect to investments – 2018 – 2019.” The customer is seeking $150,000 in damages and the case is currently pending. The complaint is regarding managed and wrap accounts.
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 may be liable for investment or other losses suffered by George’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.