Former Morgan Stanley Client Wins FINRA Arbitration for $454,813 for Portfolio Mismanagement and Over-Concentration of Retirement Account
Posted on Wednesday, May 8th, 2019 at 1:09 pm
In April 2019, a former client of Morgan Stanley won an award in a FINRA arbitration for compensatory damages for $415,888, $36,500 in expert witness fees, $2,000 in costs, and $425 for the claim filing fee for a total award of $454,813. The award is related to investment losses due to mismanagement of an investor’s retirement account. The investor was a client of financial advisor Michael Canney (CRD# 818887).
The causes of action included breach of fiduciary duty, negligence, breach of contract, ERISA violations, negligent misrepresentation, constructive fraud, failure to supervise, and respondeat superior. The causes of action related to Claimant’s allegation that Respondents mismanaged Claimant’s portfolio by failing to fix an appropriate investment strategy, which caused the portfolio to underperform due to excessive cash and a concentration in a single sector of the S&P. The FINRA arbitration hearing was conducted in Des Moines, Iowa.
Canney has been registered with Morgan Stanley in Des Moines, Iowa since 2009. Canney has also been the subject of two additional customer complaints between 1990 and 2018, according to his CRD report:
December 1996. “Misrepresentation and unsuitability product equity listed (common & preferred stock) alleged damages unspecified.” The case was settled for $10,000.
November 1990. “Client alleged unsuitable investment. Alleged damages unspecified.” The case was settled for $14,839.39.
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 Canney’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.