Arbitration panel rules that brokerage firm incorrectly touted its capabilities
Generally, promissory notes are treated as binding contracts by the Financial Industry Regulatory Authority (Finra) – however, it has made an exception in one case.
That’s because the authority’s arbitration panel has decided that an advisor, who previously worked at Morgan Stanley, will not have pay the $215,000 he has owed on a promissory note: all because the brokerage firm had “falsely touted” its abilities.
Originally working at JPMorgan, Brandon Neal made the switch across to Morgan Stanley back in 2012. It is alleged that he did so because he believed it would be possible to bring clients that were invested across a complex investment strategy.
According to a report in The Wall Street Journal, Neal was assured by recruiters at Morgan Stanley that his new company was engaged on a regular basis with this strategy which includes borrowing against replacement property bonds which are picked up from stock sales and placing them into a stock ownership program.
It is also alleged that Neal was told that the company would open an office close to his home.
With none of the claims coming true, Neal lost several significant customers and ultimately left the company just two years after his arrival, in 2014.
Moving to Investment Professionals Inc. he then chose to file a counter-claim after Morgan Stanley filed arbitration in regards to the note.
Now, Neal has been told by the panel that he is able to retain the $215,000 and he has also been awarded $300,000 in damages, plus interest.
That’s because the authority’s arbitration panel has decided that an advisor, who previously worked at Morgan Stanley, will not have pay the $215,000 he has owed on a promissory note: all because the brokerage firm had “falsely touted” its abilities.
Originally working at JPMorgan, Brandon Neal made the switch across to Morgan Stanley back in 2012. It is alleged that he did so because he believed it would be possible to bring clients that were invested across a complex investment strategy.
According to a report in The Wall Street Journal, Neal was assured by recruiters at Morgan Stanley that his new company was engaged on a regular basis with this strategy which includes borrowing against replacement property bonds which are picked up from stock sales and placing them into a stock ownership program.
It is also alleged that Neal was told that the company would open an office close to his home.
With none of the claims coming true, Neal lost several significant customers and ultimately left the company just two years after his arrival, in 2014.
Moving to Investment Professionals Inc. he then chose to file a counter-claim after Morgan Stanley filed arbitration in regards to the note.
Now, Neal has been told by the panel that he is able to retain the $215,000 and he has also been awarded $300,000 in damages, plus interest.
