Morgan Stanley, Ex-FA Ordered to Pay $330K Over Elder Abuse Allegations
According to a FINRA Award posted this week, a Financial Industry Regulatory Authority arbitration panel has ordered Morgan Stanley and former financial advisor, Francisco Valenzuela, to pay $330,000 over allegations of elder abuse and other violations.
The claim was reportedly filed against Morgan Stanley and Francisco Javier Valenzuela in October 2020 alleging elder abuse, fraud, conversion and failure to supervise, among other violations, according to the award document. The claim also named Merrill Lynch, Valenzuela’s previous employer as a defendant.
Morgan Stanley denied the allegations and asked for their dismissal, as well as the award of arbitration costs and lawyers’ fees, according to the document. Merrill also reportedly denied the allegations.
According to his BrokerReport, Valenzuela was affiliated with Merrill Lynch in Tucson, Arizona from 2010 until 2015 when he made the moved to Morgan Stanley in Tucson. He has not been registered as a broker or investment advisor since January 2018 when FINRA reportedly barred him from the securities industry.
According to FINRA, in March 2020, the claimant filed a notice of voluntary dismissal of his claims against Merrill with prejudice.
Valenzuela is required to pay the claimant $160,000 in compensatory damages for misrepresentation, manipulation and fraud, according to FINRA. Morgan Stanley was also ordered to pay $160,000 for negligence and failure to supervise.
Valenzuela and Morgan Stanley will also be required to pay $10,000 in lawyers’ fees, according to the FINRA award.
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Tags: Francisco Valenzuela claim, Francisco Valenzuela complaints, Francisco Valenzuela investigation, Francisco Valenzuela lawsuit, Francisco Valenzuela Morgan Stanley Last modified: December 8, 2022