Two Former Brokers Ordered To Pay Morgan Stanley $4.5 Million

Friday, June 17, 2011 01:29
Two Former Brokers Ordered To Pay Morgan Stanley $4.5 Million

Tags: breakaway brokers

In what should serve as a warning to other brokers looking to go independent, two former Morgan Stanley Smith Barney brokers were ordered by a Financial Industry Regulatory Authority arbitration panel to repay $4.3 million in bonuses they received from their former employer.

This Website Is For Financial Professionals Only

They must also pay $200,000 for violating the Protocol for Broker Recruiting and $75,000 in legal fees, along with more than $200 per day each in interest until they repay their bonuses.

Sean Anthony Lehmann and Kurt J. Halverstadt left Morgan Stanley Smith Barney in September 2009 to form Capital Investment Management Group Inc., a California-based registered investment advisory firm.
Other advisors looking to go independent would be wise to avoid the same mistakes and see the replay of the Advisors4Advisors May 2011 webinar with Scott Matasar “Don’t Get Sued When Going Independent.”

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.