September 15, 2014, Washington, DC
Morgan Stanley Smith Barney was fined $280,000 and ordered to disgorge commissions in connection with a $35 million Ponzi Scheme being operated in a purported British Virgin Island hedgefund, SureInvestment.
Under Morgan Stanley’s compliance procedures, the British Virgin Islands is deemed a “high risk jurisdiction”. According to the release from the U.S. Commodity Trading Futures Commission (CFTC) , in Morgan Stanley Enhanced Due Diligence and Customer Identification Program procedures they are required to “know its customer” and to be alert for any “red flags” regarding suspicious activity.
Earlier this year, the owner of SureInvestment, Benjamin Wilson, was sentenced to seven years by the U.K. Financial Conduct Authority.
Rex Securities Law provides nationwide representation to investors 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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