Advisor Craig Thistlethwaite Suspended after Allegations of Unauthorized Trades
FINRA, the securities regulator, reportedly suspended Former Morgan Stanley financial advisor Craig Thistlethwaite (CRD#2507050) for allegedly executing unauthorized trades and using unapproved communication methods with clients as of August 5th, 2024.
Between January 2014 and April 2021, Thistlethwaite allegedly conducted 546 unauthorized trades in two clients’ non-discretionary accounts, primarily involving Nvidia shares, leading to alleged losses exceeding $54 million.
Additionally, from November 2020 through April 2021, Thistlethwaite allegedly communicated with a client via personal text messages, violating Morgan Stanley’s policies and industry record keeping rules. He reportedly agreed to a 60-day suspension and a $10,000 fine without admitting or denying the allegations.
Morgan Stanley reportedly terminated his employment in January 2023 due to concerns over unauthorized transactions, unapproved communications, and purchasing a timeshare from a client without firm approval.
FINRA Arbitration Awards – Customer Complaints
One client was awarded over $11.5 million in a FINRA arbitration, and a related claim by the client’s spouse was settled for $4.2 million.
Craig Thistlethwaite Surrenders Ohio Investment Adviser License
December 11th, 2024: Ohio Division of Securities reportedly filed an administrative order against Thistethwaite with notice of intent to Suspend/Revoke/Issue Cease and Desist Order for allegations of of unauthorized trading and unapproved communications with clients. Thistethwaite reportedly consented to a voluntary surrender of his Ohio Investment Adviser Representative (IAR) license. Thistethwaite is not currently registered as a broker, or adviser according to FINRA and the SEC.
FINRA BrokerCheck: Craig Thistlethwaite
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 FINRA BrokerCheck report, Craig Thistlethwaite was reportedly registered with the following firms, among others:
06/01/2009 – 02/16/2023 MORGAN STANLEY (CRD#:149777) Perrysburg, OH
12/01/2006 – 06/01/2009 CITIGROUP GLOBAL MARKETS INC. (CRD#:7059) TOLEDO, OH
His report indicates that he has two customer complaints filed against him; one employment separation; and two regulatory actions.
The customer complaint allegations include negligence; breach of fiduciary duty; failure to supervise; breach of FINRA rules; breach of contract; fraud; unauthorized trading, among others.
Failure to Supervise
All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct. 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.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
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 action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
FINRA Lawsuits
If you have suffered investment losses with Craig Thistlethwaite 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 Ohio.
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: May 2, 2025
