Mississippi

During his transition to a new BD firm, Zimmerman altered client contact records. Zimmerman also failed to act in the best interest of some clients.

Consent

Bar (Permanent)

All capacities requiring registration in Mississippi

Permanent

1/31/2017

CLAIMANTS ALLEGE, INTER ALIA, THAT FROM DECEMBER 2007 TO JUNE 2012 THE FA WAS COMPLICIT IN THE UNAUTHORIZED TRADING AND UNSUITABLE SECURITIES PURCHASED IN THE CLIENT'S ACCOUNTS AND THE MISREPRESENTATION OF INVESTMENT STRATEGIES.

$1,000,000.00

$1,295,815.42

breach of fiduciary duty; excessive turnover; omission of facts; misrepresentation; fraud; negligence; unsuitability; violation of SEC rules and firm internal guidelines; and manipulation of trading errors.

$1,774,666.00

IN ORDER TO AVOID THE COSTS AND UNCERTAINTIES OF LITIGATION, MORGAN STANLEY SMITH BARNEY AGREED TO PAY CLAIMANTS $440,000.00 IN FULL AND FINAL SETTLEMENT OF ANY AND ALL CLAIMS ASSERTED BY CLAIMANTS IN THIS PROCEEDING.

VIOLATION OF INDUSTRY RULES AND STANDARDS OF CARE; BREACH OF FIDUCIARY DUTY; EXCESSIVE TURNOVER; FRAUD AND/OR NEGLIGENT MISREPRESENTATION; VIOLATION OF SEC RULES AND RESPONDENT MORGAN STANLEY'S INTERNAL GUIDELINES; RISKY AND SPECULATIVE TRADING; MANIPULATION OF TRADING ERRORS; FAILURE TO DISCLOSE INFORMATION; FAILURE TO DETECT AND STOP CONFLICTS OF INTEREST; AND FAILURE TO DETECT AND STOP OUTSIDE BUSINESS ACTIVITIES.

$2,305,673.00

IN ORDER TO AVOID THE COSTS AND UNCERTAINTIES OF LITIGATION, MORGAN STANLEY SMITH BARNEY AGREED TO PAY CLAIMANTS $385,000.00 IN FULL AND FINAL SETTLEMENT OF ANY AND ALL CLAIMS ASSERTED BY CLAIMANTS IN THIS PROCEEDING.

VIOLATIONS OF FINRA RULES, SEC RULES AND STATE AND FEDERAL STATUTES; BREACH OF CONTRACT; BREACH OF DUTIES OF GOOD FAITH AND FAIR DEALING; BREACH OF FIDUCIARY DUTY; NEGLIGENCE; AND GROSS NEGLIGENCE.

$1,279,340.00

IN ORDER TO AVOID THE COSTS AND UNCERTAINTIES OF LITIGATION, MORGAN STANLEY SMITH BARNEY AGREED TO PAY CLAIMANTS $371,396.00 IN FULL AND FINAL SETTLEMENT OF ANY AND ALL CLAIMS ASSERTED BY CLAIMANTS IN THIS PROCEEDING.

CLAIMANTS ALLEGE, INTER ALIA, THAT FROM OCTOBER 2007 TO AUGUST 2010 THE FA TRADED EXCESSIVELY IN UNSUITABLE TRANSACTIONS WITH THE CLIENT'S ACCOUNTS.

$2,697,566.00

$387,856.15

CLIENTS ALLEGED THAT THE MUTUAL FUNDS PURCHASED IN THEIR ACCOUNT WERE UNSUITABLE, MISREPRESENTED AND NOT IN ACCORDANCE WITH THEIR INVESTMENT OBJECTIVES. 1997-1999

$20,000.00

CLAIM DENIED.