Eric Kleiner Morgan Stanley Complaints | FINRA Bar & Investment Losses
FINRA reportedly barred former Morgan Stanley broker Eric Kleiner on October 31, 2025, after he refused to cooperate with a regulatory investigation into his termination from the firm, according to his FINRA BrokerCheck report. Investors who worked with Kleiner and are concerned about potential investment losses may want to review their accounts.
The White Law Group is looking into Eric Kleiner Morgan Stanley complaints, which include at least eight customer disputes alleging Kleiner recommended unapproved outside investments, including cannabis company TerrAscend, that Morgan Stanley purportedly had restricted its brokers from selling.
Who Is Eric Kleiner?
Eric Brian Kleiner (CRD #4135180) was reportedly registered with Morgan Stanley in New York from September 2016 until March 2025, when the firm allgedly terminated him. Earlier in his roughly 25-year career, he was registered with Wells Fargo Advisors and Prudential Securities. He is not currently registered with a FINRA-member firm.
Eric Kleiner Morgan Stanley Complaints: What Investors Allege
According to BrokerCheck, Morgan Stanley discharged Kleiner on March 18, 2025, citing allegations that he recommended non-firm-approved and firm-restricted investments to customers, including investments in which he was purportedly invested personally, failed to fully disclose an outside investment, and used a personal device to disclose confidential firm information without authorization.
Since his purported termination, at least eight customer disputes have reportedly been filed against Kleiner, several of which reportedly remain pending. Disclosed allegations include:
- A dispute filed May 8, 2025, alleging Kleiner recommended an unauthorized outside investment between September 2020 and March 2025, seeking $400,000 in damages.
- A dispute filed July 2, 2025, alleging an unauthorized outside investment recommended between May 2018 and March 2025.
- A dispute filed October 27, 2025, alleging unsuitable and unauthorized outside securities recommendations between 2018 and 2025.
- Three additional disputes filed in April 2025 alleging unauthorized investment strategies or unsuitable account management.
Several of these matters reportedly involve TerrAscend, a cannabis company that Morgan Stanley had restricted its advisors from recommending. An earlier customer complaint, filed in July 2023, alleged that Kleiner’s cannabis-securities recommendations were unsuitable and sought $300,000 in damages; that claim was denied.
These figures are drawn from Kleiner’s FINRA BrokerCheck disclosures as reported by other securities law firms tracking his case. The White Law Group has not independently verified every amount and encourages investors with firsthand knowledge of these accounts to contact us directly.
The FINRA Bar: What It Covers, and What It Doesn’t
Per a Letter of Acceptance, Waiver, and Consent (AWC No. 2024084330501) finalized October 31, 2025, FINRA barred Kleiner for violating Rule 8210 by refusing to produce documents and information requested during its investigation into his termination, and Rule 2010 for failing to observe high standards of commercial honor. Kleiner consented to the sanction without admitting or denying FINRA’s findings, as is standard in FINRA settlements of this kind.
Morgan Stanley’s Duty to Supervise
Brokerage firms are required under FINRA rules to maintain a reasonably designed supervisory system to detect and prevent selling away, undisclosed outside investments, and other sales practice violations. Investors who suffered losses tied to Kleiner’s alleged conduct may have a claim against Morgan Stanley for failure to supervise, separate from any claim against Kleiner individually, particularly given the number of complaints reportedly filed against him over several years.
Frequently Asked Questions
How do I file a claim to recover money I invested through Eric Kleiner?
Most brokerage account agreements typically include a pre-dispute arbitration clause, so claims like this are generally filed and resolved through FINRA arbitration rather than in court. Arbitration can still result in a monetary recovery. Contact The White Law Group to discuss whether you have a claim.
Can Morgan Stanley be held responsible even though it didn’t approve Kleiner’s outside investments?
Possibly. Brokerage firms have a duty to reasonably supervise their brokers. If Morgan Stanley missed red flags tied to Kleiner’s alleged conduct, investors may have a failure-to-supervise claim against the firm in addition to any claim against Kleiner individually.
What should I do if I invested through Eric Kleiner at Morgan Stanley?
If you invested in TerrAscend or another outside investment recommended by Kleiner, or have concerns about any account you held while he was your broker, contact The White Law Group for a free, confidential consultation to review your options.
Contact The White Law Group
The White Law Group, national securities fraud attorneys with offices in Chicago and Seattle, represents investors nationwide in FINRA arbitration claims against brokers and brokerage firms. If you have concerns about investments made through Eric Kleiner or Morgan Stanley, call (888) 637-5510 or visit our contact page for a free case evaluation.
