Shawn Good Investigation
June 2023-Wilmington, NC
According to publicly available records Shawn Good a former broker who last worked for Morgan Stanley discloses a final regulatory matter resulting in a permanent bar from the industry, a pending civil case and 2 pending customer suits.
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.
In 4/2022, The United States Securities and Commission filed Case 7:22-cv-00060 for its Complaint against Shawn Good (“Good”), alleges that this matter concerns a multi-year Ponzi scheme perpetrated by Good involving his clients at Morgan Stanley Smith Barney, LLC (“Morgan Stanley”). Good defrauded his clients – novice investors who trusted him, including retirees and a single mother of young children – of at least $4.8 million, resulting in more than $2 million of investor losses. Beginning in or about December 2012, and continuing through at least February 2022, Good solicited five Morgan Stanley clients to make supposed investments by transferring funds from firm accounts, often drawing on Morgan Stanley credit lines offered to those clients, to his personal bank account. Good solicited the clients to transfer the funds to his personal account, ostensibly, to make low-risk investments in real-estate development projects and supposedly tax-free government bonds. Good, in fact, used those funds to repay his earlier victims and also to pay his personal expenses, such as payments towards his Tesla, over $800,000 in credit-card bills, and Venmo transfers. At least three investors are currently owed money as a result of investing in Good’s scheme. During testimony, Good invoked his Fifth Amendment right against self-incrimination to virtually every question—including when asked about his future plans to raise funds and/or to conceal assets. For his conduct alleged in the Complaint, Good, directly and indirectly, has violated Sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and has violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. This civil case is still pending.
The Securities and Exchange Commission and FINRA have permanently barred Good.
In 4/2022, a Morgan Stanley customer filed FINRA case#22-00944 alleging that Good misappropriated funds by soliciting an outside real estate investment opportunity . That case was settled for $175,000 in 6/2023.
In FINRA case 22-00783, a Morgan Stanley customer alleges that Good misappropriated funds from their Liquidity Access Line Accounts and is seeking damages of $2,275,000. This case is currently pending.
Good was with Morgan Stanley from 12/2012 until 3/2022.
If you have suffered losses in an account handled by Shawn Good, contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.
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.
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