Former Morgan Stanley Client Wins FINRA Arbitration for $275,000 for Russian Stock Losses

Posted on Monday, November 5th, 2018 at 9:39 pm    

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In October 2018, a former client of Morgan Stanley won an award in a FINRA arbitration for compensatory damages for $275,000 for losses sustained from unsuitable investment recommendations in stock in Russian companies. The investors were clients of financial advisors Joseph Pastore (CRD# 1867225), Nikesh Kadakia (CRD# 3241399) and Kirk Snyder (CRD# 1290596).

The causes of action included violations of state and federal securities laws and FINRA/SEC rules; breach of fiduciary duty; unsuitable recommendations and investment strategy; failure to supervise and control; breach of written contract; constructive fraud, common law fraud and fraud by material misrepresentations/omissions; unjust enrichment; elder financial abuse; and respondeat superior. In the Amended Statement of Claim, Meryl Lee on behalf of the Calle Mayor Trust was added as a Claimant. The causes of action relate to Claimants’ investment in stock in Russian companies, including Gazprom, Sberbank, Market Vectors and Kopernik. The FINRA arbitration hearing was conducted in Los Angeles, California.

Pastore has been registered with Morgan Stanley in El Segundo, California since 2013. Pastore has also been the subject of one additional customer complaint, according to his CRD report:

September 2015. “Clients’ attorney alleges, inter alia, that the Russian securities purchased in the clients’ accounts were unsuitable. Damages unspecified. 2013-2015.” The case is currently pending.

Kadakia has been registered with Morgan Stanley in El Segundo, California since 2013. Kadakia has also been the subject of one additional customer complaint, according to his CRD report:

September 2015. “Clients’ attorney alleges, inter alia, that the Russian securities purchased in the clients’ accounts were unsuitable. Damages unspecified. 2013-2015.” The case is currently pending.

Snyder has been registered with Morgan Stanley in El Segundo, California since 2013. Snyder has also been the subject of one additional customer complaint, according to his CRD report:

September 2015. “Clients’ attorney alleges, inter alia, that the Russian securities purchased in the clients’ accounts were unsuitable. Damages unspecified. 2013-2015.” 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 Pastore, Kadakia and Snyder’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.