Written by The White Law Group• July 21, 2020• 7:39 pm• Blog, Current Investigations

Broker Michael Barry Carter, Morgan Stanley Advisor, Charged with Fraud

Michael Barry Carter (Mike Carter)Reportedly Charged with Stealing $6 million from Brokerage Customers

Update on Investigation: Michael Barry Carter (Mike Carter) of Mclean, VA

According to a press announcement, the Securities and Exchange Commission (SEC) on Monday charged Michael Barry Carter (Mike Carter) of McLean, Virginia with stealing approximately $6 million from brokerage customers and an elderly investment advisory client.

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According to the complaint, former Morgan Stanley advisor, “Mike” Carter, allegedly falsified internal forms to make 60 unauthorized transfers from customer accounts between October 2007 and May 2019.

Carter reportedly pled guilty to parallel criminal charges filed on Monday by the U.S. Attorney’s Office for the District of Maryland.

As we reported in September, Carter was discharged in July 2019 after allegations that he misappropriated client funds. According to his FINRA BrokerCheck report, the regulator barred Carter in September 2019. His broker profile indicates that five customer complaints have reportedly been filed against him.

The SEC alleged that Carter concealed his fraud from his clients by giving them false account statements while diverting authentic ones to post office boxes and fake email addresses he allegedly controlled. The SEC is seeking disgorgement of Carter’s alleged ill-gotten gains and imposing a civil monetary penalty.

Filing a Complaint against your Brokerage Firm

The White Law Group is investigating potential securities claims involving former financial advisor Michael Barry Carter and the liability that his employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unsuitable investment recommendations or unauthorized trades, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.