FINRA Claim: Morgan Stanley & Broker Jacob Shapira

Morgan Stanley Broker Jacob “Cobby” Shapira allegedly Shorted Amazon Stock

According to Financial Advisor IQ this week, a Financial Industry Regulatory Authority arbitration panel has ordered Morgan Stanley and financial advisor Jacob Shapira to pay close to $800,000 over alleged over-concentration and churning in short positions.

Mikedmat Dena Inc. alleged unsuitability, over-concentration/failure to diversify, churning and unauthorized transactions, among other violations, in connection to the shorting of Amazon stock and other securities, according to a FINRA lawsuit filed in July 2020. 

According to the FINRA , the claim was seeking more than $3.1 million in compensatory damages and close to $12.5 million in punitive damages.

Morgan Stanley and Shapira reportedly requested that the claim and the relief be denied, as well as the expungement of all references to the arbitration from Shapira’s record in the Central Registration Depository, according to the FINRA award.

The FINRA panel reportedly denied the expungement request, but ordered Morgan Stanley and Shapira to pay only $782,278.90 in compensatory damages, according to the FINRA document.

Shapira has reportedly been affiliated with Morgan Stanley in New York, NY for eleven years, according to his BrokerCheck record. He has five customer disputes filed against him dating back to 1993, according to his broker record. Allegations include unsuitable investments, among others.

Potential Lawsuits to Recover Financial Losses

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