John Griner was registered with Morgan Stanley in Athens, Georgia from March 2011, until his employment was terminated in October 2019. Morgan Stanley allowed Mr. Griner to voluntarily resign after allegations arose concerning whether certain options trades were properly confirmed with the client before they were placed.

If you have suffered financial losses investing with John Griner or suspect that Ms. Griner did not have your best interest in mind when recommending investments, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Morgan Stanley.

FINRA Letter of Acceptance, Waiver, and Consent No. 2019064538201

John Griner and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on January 7, 2021, over allegations related to Mr. Griner’s conduct between May 2017 and September 2019. FINRA alleged that Mr. Griner exercised discretion without written authorization in four customer accounts, in violation of NASD Rule 2510(b) and FINRA Rules 3260(b) and 2010. Specifically, FINRA alleged that Mr. Griner effected multiple trades in four customers’ accounts without first speaking with the customers on the days he effected these trades.

Under FINRA rules, to exercise discretionary power, a broker must have prior written authorization from a customer before executing a trade. FINRA rules require that a customer sign a discretionary disclosure, which allows the customer to place limits on the discretion being granted to the broker. Additionally, the firm must approve the account to be discretionary. A broker can then use his discretion and place trades without obtaining the customer’s authorization first. A discretionary account is often referred to as a “managed” account. However, without such written authorization by the customer and firm approval, a broker who receives verbal authorization from a client to execute a trade and makes the transaction violates FINRA rules. Oral permission to execute a trade is not sufficient.

In non-discretionary accounts, customers retain discretion, and brokers must always obtain their customer’s permission before placing a trade. You can read more about unauthorized trading in the context of both discretionary and non-discretionary accounts here: Unauthorized Trading.

Morgan Stanley – A Duty to Supervise

Financial institutions, like Morgan Stanley, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as the improper use of discretion, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

If you have lost money with financial advisor John Griner or Morgan Stanley, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.

Stephen Sloane was a financial advisor and registered representative at the following firms:

• Westpark Capital, Inc., New York, NY (March 2016 – August 2020); and
• Morgan Stanley Smith Barney, New York, NY (June 2009 – March 2016).

FINRA’s complaint includes the following specific allegations while he was employed by Morgan Stanley and Westpark Capital, Inc.:

• Sloane recommended that 14 of his customers engage in an investment strategy of actively buying and selling long-term U.S. Treasury Notes and U.S. Treasury Bonds (“U.S. Treasuries”).
• Sloane executed 546 buy and sell transactions of U.S. Treasuries.
• More than 40 percent of the customers’ sales of 10- and 30-year U.S. Treasuries occurred within three months of the purchase; more than 75 percent of the sales occurred within nine months.
• Sloane’s investment strategy was profitable for him, Morgan Stanley, and Westpark Capital, Inc., but not for his customers.
• Sloane received approximately $220,000 in compensation from implementing his strategy, while Morgan Stanley and Westpark Capital, Inc. were compensated $290,029.
• In contrast, the customers suffered a combined trading loss of $329,811.
• Sloane executed his active trading strategy for his benefit and without regard to his customers’ best interests.
• Sloane charged excessive markups to at least five customers on transactions involving U.S. Treasuries.

Financial advisors must make suitable investment recommendations. This obligation includes that the financial advisor has a reasonable basis for the recommended investment strategy.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.

Unsuitable recommendations and excessive trading are unethical and illegal.

Brokerage firms like Morgan Stanley and Westpark Capital, Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as excessive trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise their financial advisors or the investment account activity, they may be liable for investment losses sustained by customers.

Iorio Altamirano LLP is investigating potential securities arbitration claims involving financial advisor Stephen Sloane. Iorio Altamirano is also investigating the liability that Morgan Stanley and Westpark Capital, Inc. may have for their failure to supervise Mr. Sloane properly.

If you have lost money with financial advisor Stephen Sloane, Morgan Stanley, or Westpark Capital, Inc., contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.