Former Morgan Stanley Broker Rick Davidson Accused of Unsuitable and Unauthorized Trades
Posted on Friday, June 23rd, 2017 at 2:37 pm
Erez Law is currently investigating former Morgan Stanley broker Rick Davidson (CRD# 1315998) regarding unauthorized and unsuitable trading in customer accounts. Davidson has been registered with National Securities Corporation in New York, New York since June 2017 and Jefferies LLC in New York, New York since May 2016.
Previously, Davidson was registered with Morgan Stanley in New York, New York from June 2009 to June 2016, before he voluntarily resigned following “Allegations relating to registered representative’s exercise of discretion in clients’ accounts as well as receipt of a loan from a Morgan Stanley employee.”
Davidson has been the subject of six customer complaints between 2011 and 2019, one of which was denied, according to his CRD report:
November 2019. “Suitability.” The case is currently pending. The complaint was regarding corporate debt and took place while Davidson was registered with National Securities Corp.
May 2017. “Client verbally alleged, inter alia, unauthorized trading with respect to corporate bond investments – January 2015 to May 2016.” The case was settled for $21,000. The complaint was regarding corporate debt and took place while Davidson was registered with Morgan Stanley.
July 2016. “Claimant alleged unsuitability, inter alia, with respect to investments in account – January 2013 to March 2016.” The customer is seeking $1,000,000 in damages and the case was settled for $175,000. The complaint was regarding corporate debt and took place while Davidson was registered with Morgan Stanley.
March 2012. “It is alleged that financial advisor engaged in unauthorized transactions beginning in March 2010.” The case was settled for $101,787.94.
January 2012. “Client claims March 15, 2011 purchase of bond position was unauthorized and was not a suitable investment.” The client sought $80,000 in damages and the case was settled for $8,185.90.
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 Davidson’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.