Business Trial Group Investigates Morgan Stanley Investment Advisor

The Business Trial Group at Morgan & Morgan is investigating alleged theft of client funds by former registered representative and investment adviser Michael B. Carter of Morgan Stanley.

The Securities and Exchange Commission recently charged Carter with fraud based on allegations that he stole from brokerage and advisory customers.  Carter worked for Morgan Stanley as a financial advisor in the firm’s McLean, Virginia office when the thefts allegedly occurred.

The SEC alleges that Carter falsified internal documents to make millions of dollars of unauthorized wire transfers from client brokerage accounts to his personal bank account.  The SEC further alleges that Carter sold client securities without authorization to generate some of the funds that he transferred.

According to the SEC, Carter diverted client account statements to addresses he controlled in order to conceal the transfers.  The SEC alleges that Carter used the misappropriated funds to pay for his lavish lifestyle.

Marc P. Berger, Director of the SEC’s New York Regional Office, stated: “As a financial advisor, Carter was entrusted with millions of dollars belonging to his brokerage customers, his advisory clients, and their families.  As alleged in our complaint, Carter instead took advantage of that trust for his personal gain.”

The SEC has charged Carter with violations of the antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940.  In addition, the U.S. Attorney’s Office for the District of Maryland has announced criminal charges against Carter. Carter has pled guilty to those charges.

If you held accounts with Morgan Stanley or Michael Carter, you may have legal claims to recover any misappropriated funds.  Please contact one of our Business Trial Group attorneys at 800-816-1031 to further discuss your claims.

The Business Trial Group at Morgan & Morgan will never charge hourly fees or expensive retainers.  We are only paid if we successfully recover money for you.

Morgan & Morgan’s Business Trial Group is part of the largest contingency law firm in the nation, with more than 700 lawyers and offices across the country.  We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.