Tag Archives: Morgan Stanley investigation

Timothy T. Gibbons-Former Morgan Stanley Broker-Ordered to Pay Former Customers $749K-New Orleans,LA

NOVEMBER 2017 UPDATE-FOLLOW THIS LINK.

May 2017-New Orleans, LA

According to FINRA records, Timothy T. Gibbons a former Morgan Stanley broker, without admitting or denying the findings, entered into an agreement with FINRA to resolve allegations that he made unsuitable investment recommendations to five elderly customers ranging in age from 72 to 90.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

According to FINRA Letter of Acceptance Waiver and Consent No. 2015047910601, Gibbons over concentrated the accounts of these elderly clients in a single energy sector security. The concentration level in the customer’s accounts ranged from 65% to 79%.

The recommendation to invest in such a manner was unsuitable based on the customer’s age, risk tolerance, investment objectives and financial circumstances. FINRA Rule 2111(a) requires stockbrokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer taking those and other factors such as tax status, investment experience time horizon and liquidity needs, into account.

Gibbons, who was employed by Morgan Stanley from 2009-2015,  was suspended from association with any FINRA member for 18 months, fined $20,000 and ordered to pay partial restitution to the customers of $716,750.

 

If you have questions about an account handled  by Timothy Gibbons or if you believe your broker over concentrated your portfolio in energy stocks or made other unsuitable recommendations, call for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Patrick D. Combs-Former Morgan Stanley Broker-Discloses Customer Dispute and Suspension by FINRA-Southlake, TX

May 2017-Southlake, TX

The FINRA records of  Patrick D. Combs  ,  a  stockbroker who is currently suspended by FINRA and who was last registered with IMS Securities disclose a pending customer dispute, a final regulatory event and a termination from employment.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Combs discloses case 048-283087-16 pending in Tarrant County District Court alleging unspecified damages related to a 2012 non-broker affiliated investment.

IN 3/2017 Combs was suspended by FINRA for 7 months and fined $7,500 to resolve allegations that he participated in a private securities transaction without providing written notice to Morgan Stanley. The customer invested $500,000 in a promissory note in a privately held sports drink company. FINRA findings state that Combs submitted false answers concerning the private securities transaction in annual compliance questionnaires.

Combs  was employed by Morgan Stanley  from 6/2009-3/2016He was terminated by Morgan Stanley who made the following allegation on his FINRA record: “Allegations regarding employee’s conduct regarding the use of personal email to facilitate a private securities investment for a firm client.”

Combs was then employed briefly 3/2016-4/2016 by Houston-based IMS Securities.

If you have questions about an account  handled by Patrick D. Combs , contact us to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Andrew Todd Yocum Victims File Arbitration Against Morgan Stanley-The Villages, Florida

The Villages Florida

UPDATE MAY 2017FINRA records disclose that Andrew “Todd” Yocum has a currently pending regulatory matter. There are 17 currently pending customer disputes and 15 prior customer disputes that are final.

In many of the customer disputes, both prior and those that have been settled, the customers allege an overconcentration of oil and gas related securities. Some of the prior cases that have been settled include:

  • In 2/2017 a customer of Morgan Stanley was paid $67,500 to resolve allegations that Yocum made unsuitable recommendations in the energy sector 2014-1015.
  • IN 8/2016 a customer of Morgan Stanley was paid $35,975 to resolve allegations that from March 2012-September 2015 Yocum made unsuitable recommendations.

IN 3/2017 the Florida Office of Financial Regulation filed an Administrative Complaint alleging violations of standards of commercial honor and principles of trade; suitability; and placing trades in client accounts without authorization.

ORIGINAL POST-July 2016

Rex Securities Law recently filed a FINRA arbitration claim against Morgan Stanley alleging that they failed to properly supervise their former broker Andrew Todd Yocum, permitting him to mismanage  the brokerage account of a retired couple from Central Florida. The couple is alleging losses of between $100,000 and $499,000.

Andrew Yocum was employed by Morgan Stanley and worked in their office located at 832 Lake Sumter Landing, The Villages, Florida, until he was discharged for “Allegations concerning acting on verbal discretion” according to FINRA records.

Yocum was barred from the securities industry by FINRA in May 2016. There are numerous customer disputes currently pending by former clients of Andrew Yocum. See this for more on Yocum. 

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. Customers of broker dealers who have a dispute, such as a claim for account losses , are entitled to file an arbitration proceeding against the firm and/or the broker to recover damages.

We are currently evaluating potential cases for former clients of Todd Yocum. Call to discuss your options for recovery.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Andrew Todd Yocum Investigation-Former Morgan Stanley Broker-The Villages, FLA

July 8, 2016 —The Villages / Lady Lake-Florida

We are investigating Andrew Todd Yocum, a broker who worked for Morgan Stanley from 10/2007-10/2015, on behalf of a elderly retired couple who alleges significant losses to their portfolio on energy sector investments.

Yocum was discharged from Morgan Stanley in October 2015. At the time of his discharge, Morgan Stanley stated that there had been allegations concerning acting on verbal discretion. Following his termination from Morgan Stanley, Yocum worked for a short period of time for Summit Brokerage Services (12/2015-3/2016) ,prior to being barred from the securities industry, see below.

Generally a broker is required to obtain permission from clients prior to making any purchase or sale in the account. Discretionary trading generally requires written authorization from the client.

In May 2016, Yocum was permanently barred from the securities industry by FINRA. Yocum consented to the sanction and to the entry of findings that he refused to appear for on the record testimony in connection with FINRA’s investigation into whether he made unauthorized transactions, exercised discretion without written authority, and recommended unsuitable concentrated purchases of energy sector securities to senior investors. FINRA Investigation 2015048065701. 

Yocum’s FINRA record discloses 12 currently pending customer disputes, many of which involve unsuitable investments and over concentrations of energy sector investments. See this link for more details. 

We are interested in hearing from former clients of Andrew Todd Yocum who may have information relevant to our investigation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Ari M. Baum-Former Morgan Stanley Broker-Discloses Discharge & Pending Customer Dispute

New York

According to FINRA records,  Ari M. Baum  a stockbroker  who currently works  for Prospera Financial Services , discloses  a termination from employment and a currently pending customer dispute

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Baum discloses  that in 9/2014 he was discharged from Morgan Stanley Wealth Management. The company made the following allegation on Baum’s FINRA record: “Financial advisor altered the contents of an email sent internally related to a delayed banking transaction”.

In currently pending FINRA Case #16-0938, a customer of Morgan Stanley Smith Barney alleges damages of $1,285,000 for unsuitable transactions made in the account from 2013-2014.

Baum has been employed by  Prospera Financial Services since 10/2014. He was employed by Morgan Stanley from 11/2009-10/2014.

If you have questions about an account handled  by Ari M. Baum, call for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Andrew “Todd” Yocum -Morgan Stanley Stockbroker- Barred From Securities Industry

UPDATE July 8, 2016-See this link for current update on Andrew Todd Yocum. 

June 1, 2016-The Villages, FL- Lake Mary, FL

Andrew Yocum of Lady Lake/The Villages, Florida is currently named in 11 pending  customer disputes by customers seeking recovery of damages. In several of the cases , the customers allege that their accounts were over concentrated in oil and gas investments. He also discloses 3 prior customer disputes that have been resolved.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Yocum was discharged by Morgan Stanley in October 2015 when a customer alleged that Yocum had traded his account without proper authority, according to FINRA records.

On May 24, 2016, Yocum was permanently barred from the securities industry by FINRA to resolve allegations that he refused to cooperate with a FINRA investigation regarding allegations that he traded customer accounts without permission and recommended unsuitable purchases of energy sector investments to senior citizens.

Andrew Yocum was registered with Morgan Stanley from 6/2009-10/2015. He was most recently registered with Summit Brokerage Services.

Brokers have a duty to make suitable recommendations to customers. Over concentrating an account by recommending that a large percentage of an individual’s liquid net worth be invested in a single stock, or in this case, a single sector is generally not suitable, especially for retirees.

If you have losses in an account handled by Andrew Yocum and you believe you were misled regarding the potential risks of the investment strategy recommended to you, contact us to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870