fbpixel
888-840-1571

National Investment Fraud Lawyers

¿Perdió en bonos y fondos de Puerto Rico?

How to Bring a Claim Against Former Morgan Stanley Financial Advisor Brian Carey Sak

Posted on Friday, June 9th, 2017 at 10:39 am    

Erez Law is currently investigating former Morgan Stanley financial advisor Brian Carey Sak (CRD# 3259830) regarding an outside real estate investment. Sak was registered with Morgan Stanley in Deerfield, Illinois from 2009 to 2016. Morgan Stanley Smith Barney terminated Sak’s employment regarding, “Concerns related to outside real estate investment with a client that was not appropriately disclosed to the Firm.”

Sak was barred by FINRA in December 2016 after he “consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA during the course of its investigation into allegations that he, without his member firm’s approval, solicited a client to invest in an outside business,” according to the Acceptance, Waiver & Consent (AWC).

Morgan Stanley never had any knowledge of this arrangement, and thus Sak engaged in selling away. Selling away occurs when a financial advisor sells an investment to a client without his brokerage firm’s permission, the broker is selling investments away from the firm, or simply “selling away.” A broker might partake in this inappropriate practice to earn a commission he or she would otherwise have to pass up. These investment opportunities are not properly vetted by the associated brokerage firm and therefore exposes the client to risk. This practice violates FINRA Rule 3280 that requires all people associated with FINRA to report all transactions to their employer.

Sak has been the subject of five customer complaints between 2016 and 2017, according to his CRD report:

January 2017. “Claimants alleged, inter alia, that the FA recommended that the clients invest in an outside real estate investment opportunity of which the FA was a partner – 2012.” The customer is seeking $60,00 in damages and the case is currently pending.

October 2016. “Claimant alleged, inter alia, that the FA recommended that the client invest in an outside real estate investment opportunity of which the FA was a partner – 2011.” The customer is seeking $174,000 in damages and the case is currently pending.

October 2016. “Claimant alleges, inter alia, that from March 2011 to July 2014 the FA recommended a business investment that was not authorized by the firm.” The customer is seeking $370,000 in damages and the case is currently pending.

August 2016. “Claimant alleged, inter alia, that the FA recommended that the client invest in an outside real estate investment opportunity of which the FA was a partner – 2010-2015.” The customer is seeking $350,000 in damages and the case is currently pending.

May 2016. “Claimant alleged, inter alia, that the FA recommended that the client invest in an outside real estate investment opportunity of which the FA was a manager – 2011 to 2014.” The customer is seeking $250,000 in damages and the case is currently pending.

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 Sak’s customers.

Erez Law represents investors in the United States for claims against former Morgan Stanley financial advisor Brian Carey Sak, who is alleged to participate in an outside real estate investment. If you were a client of former Morgan Stanley financial advisor Brian Carey Sak or another firm, 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.