A Finra arbitration panel has ordered Morgan Stanley to pay at least $2.4 million in the latest round of claims by clients of a former Mississippi broker who has repeatedly been accused of mishandling investments, .
A group of physicians and their family members were the latest clients to be awarded a monetary judgment after accusing former Morgan Stanley broker Steven Mark Wyatt of unauthorized and excessive stock-market trading they say cost them money during and after the 2008 financial crisis.
Mr. Wyatt purchased thinly-traded stocks for his clients that he himself owned, while also loading up his clients' portfolios with speculative bets on exchange-traded funds and other securities, according to a lawyer for the clients who brought the case, Joseph C. Peiffer at Peiffer Rosca Wolf Abdullah Carr and Kane.
The panel decision — dated July 24 and released by the Financial Industry Regulatory Authority Inc. — is the latest in a series of claims against Mr. Wyatt and his firm and managers at his Ridgeland, Miss., branch.
Four previous cases involving Mr. Wyatt have been settled or resolved in a similar fashion without an admission of guilt. He's been found liable in two additional cases. Two more cases are pending, according to regulatory filings.....
The physicians' claim had asked for $4.43 million plus interest, fees and other costs. Morgan Stanley will pay fees and interest in addition to the $2.4 million judgement.... Rest of article.