Claimant alleges, inter alia, FA solicited an outside real estate investment opportunity that was not authorized by the Firm. Claimant also alleges that investment in an equity recommendation by the FA was unsuitable from January 2017 through February 2022.

$497,566.33

Claimants allege, inter alia, fraud with respect to funds from Portfolio Loan Account invested in outside real estate investment from March 2018 to September 2022.

$150,000.00

$150,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Shawn E. Good ("Respondent"). On the basis of this Order and Respondent's Offer, the Commission finds that on July 15, 2022, an order of permanent injunction was entered by consent against Good, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act and Rule 10b-5 and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Shawn E. Good, Civil Action Number 7:22-cv-0060, in the United States District Court for the Eastern District of North Carolina. The Commission's complaint alleged that between December 2012 and February 2022 Good perpetrated a multi-year Ponzi scheme which involved his clients at Morgan Stanley, and that in doing so, he defrauded his clients of at least $4.8 million, resulting in more that $2 million of investor losses.

Order

Bar (Permanent)

Association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent or NRSRO

Indefinite

2/27/2023

Participating in any offering of a penny stock

Indefinite

2/27/2023

Penny Stock Bar

Claimant alleges, inter alia, FA misappropriated funds by soliciting an outside real estate investment opportunity to client - 2015 to 2018.

$175,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission (the "Commission"), for its Complaint against Shawn Good ("Good"), alleges that this matter concerns a multi-year Ponzi scheme perpetrated by Good involving his clients at Morgan Stanley Smith Barney, LLC ("Morgan Stanley"). Good defrauded his clients - novice investors who trusted him, including retirees and a single mother of young children - of at least $4.8 million, resulting in more than $2 million of investor losses. Beginning in or about December 2012, and continuing through at least February 2022, Good solicited five Morgan Stanley clients to make supposed investments by transferring funds from firm accounts, often drawing on Morgan Stanley credit lines offered to those clients, to his personal bank account. Good solicited the clients to transfer the funds to his personal account, ostensibly, to make low-risk investments in real-estate development projects and supposedly tax-free government bonds. Good, in fact, used those funds to repay his earlier victims and also to pay his personal expenses, such as payments towards his Tesla, over $800,000 in credit-card bills, and Venmo transfers. At least three investors are currently owed money as a result of investing in Good's scheme. During testimony, Good invoked his Fifth Amendment right against self-incrimination to virtually every question-including when asked about his future plans to raise funds and/or to conceal assets. For his conduct alleged in the Complaint, Good, directly and indirectly, has violated Sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and has violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

Pending final judgment

FINRA

Without admitting or denying the findings, Good consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation concerning a Form U5 filed by his member firm. The findings stated that the firm filed the Form U5 disclosing that it had terminated Good’s registration because he declined to cooperate with an internal firm review following client accusations.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

4/14/2022

Claimants alleges, inter alia, that the FA misappropriated funds from claimants' liquidity access line accounts from August 2019 to February 2022.

$2,275,000.00

$2,762,000.00

CLIENT IS ALLEGING MISREPRESENTATION OF AN OHIO NATIONAL ANNUITY SOLD IN HIS ACCOUNT. ACTIVITY DATES ARE 3/31/11 - 9/9/11.