Ex-Morgan Stanley Broker Ronald Diaz Allegedly Defrauded Elderly Client
Ronald Diaz, (FINRA CRD#: 5283407) a 41-year-old former financial advisor from Tucson, was reportedly sentenced to 22 months in prison for wire fraud, according to a press release from the US Attorneys Office on February 28th, 2025.
Ronald Diaz: Allegations of Broker Fraud
Between 2020 and 2022, while reportedly affiliated with Morgan Stanley, Diaz allegedly defrauded an elderly client of $970,000 by falsely promising a 10% return on a fake annuity investment.
Diaz purportedly funneled the money through family members and allegedly spent it on gambling, a Range Rover down payment, credit card debt, home renovations, and other personal expenses. He allegedly made some “interest” payments to keep the victim invested, but none of the funds went toward a legitimate investment. The victim passed away during the investigation.
In addition to the prison sentence, Diaz must repay $867,510.37 to the victim’s next of kin. The FBI investigated the case, and the U.S. Attorney’s Office in Arizona prosecuted it.
Ronald Diaz – FINRA Broker Check
According to his FINRA broker report, the securities regulator barred Ronald Diaz in February 2023 after he failed to provide information in its investigation.
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
According to his broker report, Ronald Diaz was reportedly registered with the following firms during his career in the securities industry. He is not currently registered as a broker.
06/20/2019 – 01/03/2023 MORGAN STANLEY (CRD#:149777) Tucson, AZ
10/01/2012 – 07/03/2019 J.P. MORGAN SECURITIES LLC (CRD#:79) TUCSON, AZ
08/21/2009 – 10/01/2012 CHASE INVESTMENT SERVICES CORP. (CRD#:25574) TUCSON, AZ
Broker Misconduct and Failure to Supervise
Broker misconduct occurs when financial advisors engage in unethical or fraudulent practices, such as misrepresenting investments, unauthorized trading, or misusing client funds. FINRA-registered broker-dealers have a duty to supervise their brokers to prevent such misconduct.
If the firm fails to supervise its brokers properly, it can be held liable through FINRA arbitration. Investors who suffer losses due to a broker’s misconduct can file a claim against both the broker and the firm, alleging failure to supervise. If a firm neglects this duty, it may be ordered to compensate the affected investor through an arbitration award.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation with The White Law Group
If you have suffered investment losses with Ronald Diaz and Morgan Stanley the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including Arizona.
National Securities Attorneys
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
Last modified: March 14, 2025
