Former Morgan Stanley Broker Eugene Gordon Investment Loss Options
Posted on Wednesday, March 18th, 2020 at 2:06 pm
There are options for customers who suffered investment losses due to recommendations by former Morgan Stanley broker Eugene Gordon (CRD# 4744448). Gordon has been registered with Fortune Financial Services, Inc. in Palo Alto, California since 2018. Previously, Gordon was registered with Morgan Stanley Smith Barney in Palo Alto, California from 2009 to 2018, when he was terminated regarding, “Allegations involving a husband/customer’s claims that the representative allowed the husband’s wife, who was also a customer, to make withdrawals from the husband’s retirement account, without the husband’s written authorization for the withdrawals or the related transactions.”
In November 2019, FINRA sanctioned Gordon to a $5,000 civil and administrative penalty and fine and suspended him for 90 days after he, “consented to the sanctions and to the entry of findings that, while associated with a member firm, he effected transactions in his customer’s IRA based upon instructions given to him by the customer’s wife, who was not authorized to direct transactions in the customer’s account. The findings stated that the firm’s written policies prohibited representatives from executing trade orders without the prior express authorization of the client. A representative was not permitted to execute a trade order received from a third party in a client’s account unless the third party had been authorized by the client (or a court order) to trade in that account. However, based upon the instructions received from the customer’s wife, Gordon made mutual fund trades in the customer’s IRA and facilitated distributions from the IRA to the couple’s joint bank account totaling $317,704.88. Gordon also entered inaccurate notes in the firm’s system in connection with certain distributions because he indicated in the notes that he had spoken with the customer when he actually had spoken with the customer’s wife.”
Gordon has been the subject of one customer complaint in 2017, according to his CRD report:
October 2017. “Client’s attorney alleges, inter alia, that there were unauthorized trading and withdrawal from the client’s account by the client’s wife and the FA. 2010 – 2017.” The customer is seeking $1,938,188 in damages and the case is currently pending. The complaint is regarding insurance and took place while Gordon was registered with Morgan Stanley.
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 Gordon’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.