Morgan Stanley—Churning Accounts of an Elderly Customer
Morgan Stanley Made to Pay More than $1 Million Fine by FINRA Arbitration Panel in after Allegedly Churning Account of Elderly Woman
Morgan Stanley and the broker Justin Amaral have been found jointly liable after Morgan Stanley and Justin Amaral allegedly churned the account of a case involving a 92-year-old widow, Genevieve Lenehan, according to findings from a FINRA arbitration panel.
Amaral, who managed money for Lenehan and her late husband, allegedly systematically bought and sold closed-end funds and IPOs after Lenehan’s husband passed, FINRA reports.
The arbitrators recently found in favor of Genevieve Lenehan, 92, giving her punitive and compensatory damages, attorneys’ fees, and other costs that amounted to $1.06 million, FINRA notes.
Justin Amaral Allegedly Shifted Thousands of General Electric Shares from Genevieve Lenehan, Shares She Acquired Working as a secretary at the manufacturing firm, beginning during World War II
Justin Amaral allegedly began a systematic investment strategy, following the death of Mr. Lenehan, in which he bought and sold closed-end funds and initial public offerings to generate fees, according to Ms. Lenehan’s attorney, Robert Jutras.
Justin Amaral then allegedly moved thousands of shares of General Electric (GE) stock that Ms. Lenehan had accrued while working as a secretary at the manufacturing firm since World War II. FINRA documents notes.
Finally, Justin Amaral then allegedly took the shares from a box in Amaral’s basement and put them into a fee-generating structure, exchanging annuities by forging Lenehan’s signature, according to a statement from Robert Jutras, Lenehan’s attorney.
The Peiffer Wolf Carr & Kane Securities Lawyers Often Assist Investors
The Peiffer Wolf Carr & Kane securities lawyers assist investors who lose money as a result of the churning of customer accounts. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of brokers churning customer accounts are encouraged to contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.