Customer complained that the Financial Advisor was negligent in his fiduciary duties by not preventing the systemic depletion of the account by a joint owner without the authorization of the customer. (4/27/2018-9/18/2020)

Massachusetts

Riley has an outstanding tax lien with the Internal Revenue Service ("IRS"). Riley currently has a payment plan with the IRS to resolve the tax lien.

Consent

Undertaking

For a period of the later of two (2) years from the date of entry of the Consent Order or until such time as the tax lien no longer remains outstanding or unsatisfied, Riley will be subject to heightened supervision.

$81,450.75

Tax

I have a payment plan with the IRS

CUSTOMERS CLAIM THAT FROM 1997 TO 2001 FINANCIAL ADVISOR RECOMMENDED AN ALLEGEDLY UNSUITABLE MIX OF STOCKS, RESULTING IN LOSSES IN THEIR ACCOUNTS. CUSTOMERS FURTHER CLAIM FINANCIAL ADVISOR ALLEGEDLY PERMITTED MARGIN BORROWING IN ERISA ACCOUNT, WHICH WAS ALLEGEDLY AGAINST ERISA & IRS REGULATIONS. CUSTOMERS ASSERT AN ALLEGED ACCOUNTING IRREGULARITY RELATING TO BACK-UP WITHHOLDINGS DEDUCTED FROM THEIR JOINT ACCOUNT FROM JUNE THROUGH DECEMBER 2000. FINALLY, CUSTOMERS ALLEGE MORGAN STANLEY BREACHED ITS FIDUCIARY DUTY, ALLEGEDLY FAILED TO SUPERVISE THE FINANCIAL ASVISOR AND THAT SOMEONE AT MORGAN STANLEY ALLEGEDLY SIGNED [OTHER CUSTOMER NAME] NAME ON A FORM W9. ALLEGED DAMAGES IS UNSPECIFIED, BUT BELIEVED TO APPROXIMATELY $91,000.

$91,000.00

$75,000.00