Amended U-5

Discussion in 'Prop Firms' started by spyglass, Dec 19, 2005.

  1. I worked for Morgan Stanley for just over 2 years. I quit working for them in April 1999 and started trading for a prop firm. This pass weekend I received an amened U-5 from Morgan Stanley.

    It turns out they say a client of mine complained " that all agreements with Morgan Stanley are null and void. Customer further claimed that investments made were unsuitable. Alleged damages unspecified, but believed to be approx $20,000."
    The complaint was received by Morgan Stanley 09/29/2005. Morgan Stanley settled the complaint on 12/02/2005 in the amount of $15,000.

    It has been 5 1/2 years since I left and they just now get a complaint. What about the broker that took the account after I left, shouldn't they have dealt with the client? How can I be responsible for this guy losing $20K, I left so long ago.

    My first problem is now I have to answer yes when I answer questions for my U-4 and it will delay my registration. Morgan Stanley never contacted me about this, or asked me for a statement. They have not presented me with any evidence as to my guilt. I have no recollection of this client so I can not recall the investments or anything about him.

    What is my recourse in this situation if anything. Can I get any information from Morgan Stanley about this, or is there any way to clear my name? Would it be worth it to hire a lawyer to deal with this for me, or should I just let it go and forget about it?

    Any thoughts?
  2. nlslax


    The securities license truly is a license to be sued.
    It would be nice if investors took more responsibility for their actions. Obviously the settlement was not worth MS making a fight over it.
  3. Spyglass,

    Go to under broker forums, then legal issues and post the same question--I'm sure you'll get a response soon.
    (you'll have to sign-up first. Easy as et.)
  4. alanm


    Presumably, the activity in question was before you left MS, or they have made a mistake in thinking you were the client's broker. Why not ask MS for the details?

    Anyone know what the statute of limitations is for issues with brokerages? 6 years seems like a long time.
  5. Thanks for the link. I'll check it out.
  6. I have contaced MS, They really do not care to give out anyinformation to me. I guess I am trying to figure if it is worth it to fight it, or just accept it, and believe it will not affect me in the future.
  7. Ebo


    Hire a lawyer and MS will talk real fast.
    Threaten them with slander or something good, and have them pay your legal fees and clean off the U-5.
  8. You have two courses of action.....1) Sue MS for damages to your reputation......they will fight of course, but then agree to drop your case and settle with them and have written into the settlement agreement " Joint stipulation ofr Expungement"

    The you can have it removed from your record

    2) Contact the NASDR and have a full blown investigation can complain on line. Demand to see the complaint plus all records...most likely the guy who took over the account f*cked up the account but is a good producer.....its easier to ding your license and keep him clean....any settlement by an nasd member over $5k has to be reported.
  9. Thanks TM good advice,
  10. jem


    Hey you might have a gold mine on your hands if this really was not your account or your doing. Fraud, libel, slander, interference with economic advantage, punis and I am just getting started.

    And I am speaking as an Attorney and the holder of a 7.

    I could whip a jury into a frenzy over this one because it got me pissed off just putting myself in your shoes (assuming you are not to blame.)

    Definitely collect the facts if you really did not do anything wrong.

    By the way the fraud thing and the torts would probably take you out of any agreements you had to arbitrate. Assuming you are liability free, a jury would be their worst nightmare.

    By the way I would consider naming the customer to the suit as well, and then take his depo, boy would that son of bitch sing if there was any hanky panky going on.
    #10     Dec 20, 2005