Morgan Stanley offices in Baltimore, MD. Photo: Diego M. Radzinschi/ALM
Morgan Stanley has agreed to pay the Securities and Exchange Commission (SEC) a $15 million penalty, with failing to reasonably supervise four investment adviser and registered representatives in its Smith Barney unit who stole millions of dollars of advisory clients’ and brokerage customers’ funds and for failing to adopt policies and procedures reasonably designed to prevent and detect such theft.
The four advisors, located in Texas and California – Michael Carter, Chingyuan “Gary” Chang, Douglas McKelvey and Jesus Rodriguez – "collectively, misappropriated millions of dollars from customer and client accounts primarily through two forms of third-party disbursements: unauthorized ACH payments and unauthorized wire transfers," the order states.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
