Former Morgan Stanley Financial Advisor James Mewhinney III Unsuitable CEF Losses
Posted on Friday, March 1st, 2019 at 11:27 am
Erez Law is currently investigating former Morgan Stanley financial advisor James Mewhinney III (CRD# 857321) regarding excessive and unsuitable closed end fund (CEF) transactions. Mewhinney was registered with Morgan Stanley in Dallas, Texas from 2009 to 2018.
Mewhinney has been the subject of two customer complaints between 2008 and 2018, according to his CRD report:
November 2018. “Attorney for trustee alleges FA made excessive and unsuitable closed end fund transactions. 2017.” The customer is seeking $550,000 in damages and the case is currently pending.
July 2008. “The complaint arose out of the sale of an auction rate security (ARS) that was made prior to the widespread illiquidity in the ARS market that occurred in February 2008.” The case was settled for $2.2 million.
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 Mewhinney’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.