Michael Barry Carter Reportedly Pled Guilty to stealing at least $6.15 million
Michael Barry Carter, former Morgan Stanley financial advisor, was sentenced to five years in prison this week after pleading guilty to stealing at least $6.15 million from brokerage customers, according to the U.S. Attorney’s Office for the District of Maryland.
The SEC filed parallel charges in July 2020, charging him with stealing approximately $6 million from brokerage customers and an elderly investment advisory client.
According to the charges, “Mike” Carter allegedly falsified internal forms to make 60 unauthorized transfers from customer accounts between October 2007 and May 2019. Carter was reportedly affiliated with Morgan Stanley from 2009 until 2011 and then had a brief stint at Ameriprise. He was registered again with Morgan Stanley in Mclean, VA from 2011 until July 2019 when he was discharged for “allegations of misappropriation of client funds,” according to his FINRA Broker Profile.
As part of his plea agreement, Carter also reportedly admitted to embezzling more than $50,000 from a non-profit sports organization, according to the Attorney’s office.
Carter allegedly spent the stolen funds on his mortgage, credit card bills and country club membership fees, according to the press release.
Carter will also be required to serve three years of supervised release and pay a money judgment of at least $4.36 million, the equivalent of the net proceeds he reportedly obtained from the scheme. According to the documents, Carter had returned $1.79 million to his victims before the fraud was detected and, after learning that his fraud had been discovered, repaid the non-profit, according to the press release.
Filing a Complaint against your Brokerage Firm
The White Law Group is investigating potential securities fraud claims involving Michael Barry Carter and the liability his former employers may have for failure to properly supervise him.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as making fraudulent claims, 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.
If you suffered losses investing with Michael Barry Carter and Morgan Stanley, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
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.
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