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Written by 5:10 pm Blog, Current Investigations, Securities Fraud

Ex-Morgan Stanley Advisor Shawn Good Allegedly Defrauded Investors out of $7 Million 

Ex-Morgan Stanley Advisor Shawn Good Allegedly Defrauded Investors out of $7 Million, featured by top securities fraud attorneys, the White Law Group

Advisor Shawn Good of Wilmington, NC Reportedly Pleads Guilty to Fraud Scheme, Faces 30 Years in Prison 

A former financial advisor in Wilmington, NC, Shawn Good, has reportedly entered a guilty plea on September 15, 2022, to defrauding his clients of more than $7 million, according to numerous reports. 

In April 2022, we reported that the SEC was investigating Good for running a multimillion Ponzi scheme. See: Financial Advisor Shawn Good, Morgan Stanley, Barred after Allegations of Running Ponzi Scheme 

Parallel federal charges were reportedly filed in August, 2022.  

After reportedly pleading guilty to wire fraud and money laundering in a case handled by the U.S. District Court for the Eastern District of North Carolina, Good is reportedly facing up to 30 years in prison, according to reports. 

According to the charges, Good, while working for Morgan Stanley in Wilmington, allegedly operated a decade-long Ponzi scheme. Good allegedly misled investors by soliciting investments in purported real estate projects and tax-free municipal bonds.  

Good allegedly convinced some clients to open a liquid asset line of credit secured by their Morgan Stanley investment or retirement accounts. He then purportedly convinced clients to transfer the funds to their personal bank accounts and then wire the funds directly to Good’s personal bank account. 

Some of Good’s alleged victims reportedly paid by check and wire transfers using funds derived from sources other than Morgan Stanley accounts. According to the charges, at least 12 victims invested a combined $7.24 million based on allegedly false statements and misrepresentations made by Good. 

According to reports, Good allegedly used the money for personal expenses, including a Wilmington home, Florida condominium, luxury vehicles such as a Mercedes Benz and Porsche Boxster, European vacations and other travel. 

Good allegedly also used some of the investor funds to make payments to earlier investors. 

According to his FINRA BrokerCheck report, Good has three customer complaint on his record. He was reportedly affiliated with the following firms, among others, during his career in the securities industry:    

12/06/2012 – 03/10/2022, MORGAN STANLEY (CRD#:149777), WILMINGTON, NC,   

11/09/2004 – 12/07/2012, WELLS FARGO ADVISORS, LLC (CRD#:19616), WILMINGTON, NC 

The Financial Industry Regulatory Authority (FINRA) reportedly barred Good from working in the securities industry earlier this year. 

FINRA Lawsuits to Recover Investment Losses   

The White Law Group is investigating potential securities claims involving former Shawn Good and the liability that Morgan Stanely may have for failure to properly supervise him.  

When brokers abuse client accounts or conduct transactions that violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. 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 brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.          

If you are concerned about investments with Shawn Good and Morgan Stanely, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.      

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.      

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.      

 

Tags: , , , , , , , , , Last modified: September 19, 2022