The Securities and Exchange Commission has accused a former Morgan Stanley financial advisor of running a decade-long, multimillion-dollar Ponzi scheme. Shawn E. Good (CRD#: 2022168), allegedly misappropriated at least $4.8 million from his clients at Morgan Stanley resulting in investors losing over $2 million according to and SEC press release on April 19, 2022.
According to the SEC complaint, Good defrauded at least five of his clients including a single mother and several retirees. He was supposedly making low-risk investments in tax-free bonds and local land-development projects. However, he was repaying other investor victims and covering various personal expenses.
The SEC alleges that Good instead used client funds to pay for a Tesla, international travel, approximately $800,000 in credit-card bills, and $110,000 in Venmo payments.
On February 14, 2022, Morgan Stanley terminated Good after he failed to comply with an internal review following client accusations. Between 2017 and 2022, the former financial advisor was able to solicit at least 30 fraudulent investments from Morgan Stanley clients.
The complaint charges Good with violating several SEC antifraud provisions. The SEC seeks preliminary and permanent injunctive relief, an asset freeze, an accounting, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties.
Potential Investment Loss Claims
Rikard and Protopapas, LLC represents investors in securities arbitrations and litigation at a local and national level. We have recovered tens of millions of dollars for clients harmed by investment fraud and rogue Financial Advisors.
Many investors may not be aware of their legal right to recover their losses where they are victims of financial advisor misconduct. These brokers and advisors are licensed professionals, so they must follow the law and strict rules and guidelines when handling investments for clients.
It is important to act quickly if you think you have a claim. It is also crucial to have an attorney that understands the process, the litigation, and seriousness of these devastating losses. Rikard & Protopapas has years of experience successfully recovering millions for victims of investment loss cases. If you have lost money due to fraud or misconduct by a financial advisor or broker, call our legal team today to have your case evaluated at 803-978-6111 or learn more about how we can help here.