Zamansky LLC Investigates Former Morgan Stanley Financial Advisor Shawn E. Good for An Alleged Ponzi Scheme
Investment fraud attorney Jake Zamansky and his team are investigating potential legal claims on behalf of investors who were customers of former Morgan Stanley financial advisor, Shawn E. Good, in Wilmington, North Carolina. On April 14, 2022, the Financial Industry Regulatory Authority (FINRA) permanently barred Mr. Good from any association with a securities broker-dealer for his failure to appear at an on-the-record interview during an investigation of his activities. Previously, Mr. Good was terminated from Morgan Stanley for his failure to cooperate with the firm’s investigation of his activities.
Why We’re Investigating
The U.S. Securities and Exchange Commission sued Mr. Good alleging that he ran a decade-long Ponzi scheme that defrauded his Morgan Stanley clients out of nearly $4.8 million. Mr. Good allegedly told clients that they were investing in real-estate development projects and tax-free government bonds when in reality, he was using their funds to pay off other investors and his own personal expenses.
Mr. Good allegedly told clients that his investments were ‘”low-risk” and would pay returns of between 6% and 10% over three-month or six-month terms. Instead, Mr. Good allegedly used client funds to pay off $800,000 in credit card debt, make payments towards his Tesla and made several Venmo transfers with memo lines such as “because you’re sexy,” “tattoo,” “hotel for Destiny,” “nailz” and “shopping.”
Zamansky LLC is investigating potential claims by Mr. Good’s victims against Morgan Stanley for failure to supervise and respondeat superior.
Let a Skilled Investment Fraud Attorney Help
FINRA Rule 3110 requires broker-dealers like Morgan Stanley to have reasonably supervisory systems and procedures to prevent this type of fraud by its financial advisors. Anyone who was a victim of Mr. Good’s alleged Ponzi scheme at Morgan Stanley may have a legal claim to recover their losses through FINRA arbitration.
Please call an investment fraud attorney at (212) 742-1414 or firstname.lastname@example.org for a free evaluation of your potential legal rights.