Corporate & Securities Law

Regulator Penalizes Morgan Stanley For Imprudent Retirement Advice Given To Eastman Kodak And Xerox Corporation Early Retirees

By James Eccleston

Recently, Morgan Stanley was fined $3 million and ordered to pay more than $4.2 million in restitution to 90 retirees, to resolve charges that its supervisory system failed to detect and prevent brokers from persuading Eastman Kodak Company and Xerox Corporation employees to take early retirement.  These pitches were based upon unrealistic promises of consistently high investment returns and by espousing unsuitable investment strategies.  In settling these matters, neither Morgan Stanley nor the individual brokers admitted or denied the findings, but consented to the entry of FINRA's findings.

Unrealistic promises of consistently high investment returns on the one hand, and unsuitable investment strategies on the other hand, present great risk for retirees.  SNSFE continues to investigate all types of cases involving retirees who retired too early based upon such misrepresentations.  Those with information should feel free to contact attorneys at SNSFE.

Full post as published by FinancialCounsel on March 31, 2009 (boomark / email).