You need to read it a few times before the enormity of what's being alleged, what may be involved, and what would need to be proved hits you. In 2019, a FINRA Panel of Arbitrators issues a decision addressing claims filed in 2014 seeking over $2 million in damages from Morgan Stanley for, in part, financial elder abuse, that allegedly arose from trading as far back as 1993. Prime among the points in contention was whether the customers' claims were barred by a six-year eligibility rule or applicable statues of limitations. In a workmanlike and impressive manner, a FINRA Arbitration Panel tackles the thorny issues and produces an informative decision.
Case In Point
In a FINRA Arbitration Statement of Claim filed in June 2014 and as amended, public customer Claimants asserted violation of
Financial Elder Abuse Act; breach of fiduciary duty; negligent supervision; unsuitability;
fraud; reckless action; violation of industry standards; fraudulent
concealment; fraud -- churning and omission of material facts; failure to supervise; and
conversion. The causes of action arose in connection with the alleged use of margin-like loans and the purchase
and trading of concentrated positions in stocks, mutual funds and options in such positions as Bank of America, Sears, Washington Mutual,
IndyMac, Lehman Brothers, Six Flags, Sprint, Baidu, First Solar, Petroleo Brasileiro,
and Invesco bond fund. Ultimately, Claimants sought at least $1,811,435 in excessive commissions; at least $700,000 in consequential damages; well-managed portfolio damages; treble damages for financial elder abuse;
punitive damages; fees. and costs. In the Matter of the Arbitration Between Mario Frank Voce, Julia Voce, and Adam DeVone, as co-trustees of the Restated Voce Marital Trust, the Voce Residuary Trust, and the Voce Family Trust dated August 17, 1970, Claimants, v. Morgan Stanley & Co., LLC, Respondent (FINRA Arbitration Decision 14-01954, January 29, 2019)
Respondent Morgan Stanley generally denied the allegations, asserted various affirmative defenses, and requested the expungement of the matter from a non-party's Central Registration Depository record ("CRD").
Respondent Morgan Stanley's Motion to Dismiss
In October 2018, Respondent Morgan Stanley filed a Motion to Dismiss Pursuant to FINRA Rule 12206 and Motion to Dismiss Claimant Adam DeVone as a Party Pursuant to FINRA Rule 12200.