Recovery Options for Victims of Former North Carolina Morgan Stanley Advisor Shawn Good

(MENAFN- EIN Presswire)

Marc Fitapelli, Esq.

Attorney Marc Fitapelli is interested in speaking with investors who lost money with Shawn Good.

Morgan Stanley may be responsible for paying significant money damages to Shawn Good's former clients.” — Marc Fitapelli, Esq. NEW YORK, UNITED STATES, April 19, 2022 /EINPresswire.com / -- MDF Law announces recovery options for victims of former North Carolina based Morgan Stanley financial advisor Shawn Good. On April 19, 2022, Good was named as a defendant by the United States Securities and Exchange Commission (SEC) in a case that was filed in the United States District Court for the District of North Carolina (Index No. 7:22cv60). If you or someone you know was a victim of Shawn Good, please contact attorneys Marc Fitapelli or Jeffrey Saxon at 800-767-8040 to evaluate your options against Morgan Stanley.

Shawn Good worked for Morgan Stanely in North Carolina from December 2012 to February 2022. During that time period, he convinced multiple Morgan Stanley clients to make“investments” by transferring funds from their Morgan Stanley accounts to Good's personal bank account at Corning Credit Union and Bank of America. Often transfers were made using securities backed lines of credit.

Good told his clients that their money would be used to invest in real estate projects as well as tax-free North Carolina municipal bonds. He also told the clients that the fraudulent investments were“low risk” and would pay returns of between 6% and 10%. Investors were never provided with a prospectus or any other written documentation to confirm these representations. When the term of an investment ended, Good would simply tell his investors that he would roll their maturing investments into new ones with similar terms.

Good raised approximately $5 million since 2017. He did not use investor funds to purchase any securities. Instead, according to the Securities and Exchange Commission, Good was misappropriating investors money while running a ponzi scheme. He also used over $900,000 of investor funds to pay his credit card bill and various personal expenses. Good misappropriated client money to pay for vacations around the world, plastic surgery and over $100,000 in Venmo payments to women with subject lines such as“because youre sexy.”

In or about March 10, 2022, Morgan Stanley terminated Good. Following this termination, the Financial Industry Regulatory Authority, or FINRA, launched an investigation into Shawn Good's misuse of client funds. Good failed to respond to that investigation and was formally barred by FINRA on April 5, 2022. He can no longer register as a securities salesperson.
Morgan Stanley's Liability to Shawn Good's Victims

Under the rules of the SEC and FINRA, Morgan Stanley has an obligation to reasonably supervise its registered representatives. MDF Law believes that Morgan Stanley may have been negligent in its supervision of Shawn Good based on the following facts contained in the SEC's complaint:

1.Wire Transfers: Good apparently effectuated wire transfers from accounts that were custodied at Morgan Stanley to his personal accounts at Bank of America and Corning Credit Union. Broker-dealers, such as Morgan Stanley, are legally required to monitor outgoing wire transfers from customer accounts. Good's ability to effectuate numerous transfers from client accounts to his personal account over a five-year period may be evidence of serious supervisory negligence.

2.Emails to : Under the rules of the Financial Industry Regulatory Authority, Morgan Stanley is required to monitor written communications between its customers and advisors. In this case, Good directed his victims to email him at a yahoo account. Morgan Stanley either knew of or should have known of this account. This also may be evidence of serious supervisory failures.

3.Affiliation with Morgan Stanley: Good was not shy about touting his affiliation with Morgan Stanley. This affiliation is likely the only reason many of his clients decided to invest with him. Morgan Stanley provided Good with credibility and trust. Investors likely would have never met or invested with Good, except for his affiliation with Morgan Stanley.

Victims of Shawn Good may be able to file arbitration cases against Morgan Stanley to seek their investment losses. These disputes are not filed in court and are filed before an arbitration forum called FINRA. FINRA stands for the“Financial Industry Regulatory Authority.” Most FINRA arbitrations are resolved in approximately 1-1.5 years. Victims of Shawn Good can probably sue for their lost principal, interest and attorney's fees, but must discuss their specific case with an attorney.

MDF Law is a New York based law firm that exclusively represents victims of financial fraud nationwide. Marc Fitapelli is a partner and owner of MDF Law. Over his career, Mr. Fitapelli has recovered over $100 million for investors, and has handled hundreds of individual FINRA arbitrations. He has handled cases against all the major broker-dealers, including Morgan Stanley.

Mr. Fitapelli and his firm, MDF Law, have extensive experience working with victims of other high profile ponzi schemes. For example, MDF Law currently represents investors in Georgia, California, Virginia and Indiana who were victims of a ponzi scheme perpetrated by a financial advisor at Oppenheimer & Co. This scam was known as the Horizon Private Equity ponzi scheme.

If you or someone you know lost money investing with Shawn Good, please contact attorneys Marc Fitapelli or Jeffrey Saxon for a free and confidential consultation at 800-767-8040.

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The information contained in this release is based on allegations contained in charges made by the United States government in Securities and Exchange Commission v. Shawn E. Good, filed in the United States District Court for the District of North Carolina (Index No. 7:22cv60).

Marc Fitapelli, Esq.
MDF Law
+1 212-203-9300
email us here

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