Shawn Edward Good, who was a registered broker with Morgan Stanley it its Wilmington, North Carolina office, was recently barred by FINRA by consent agreement. Mr. Good also has a pending SEC Complaint against him alleging the following involvement in a ponzi scheme:
- From 2012 until 2022 Mr. Good solicited customers to transfer funds to his personal bank account, allegedly for investments in real estate and government bonds.
- In ponzi scheme fashion, the transferred monies were used to repay earlier customers who had also invested, in addition to payment of Mr. Good’s personal expenses.
- The alleged fraud included at least $4,800,000.00 paid from customers, and approximately $2,000,000.00 in losses for investors.
Mr. Good was also indefinitely barred from the securities industry by FINRA pursuant to an Acceptance, Waiver and Consent agreement. Mr. Good’s FINRA Brokercheck report also discloses two customer complaints of alleged misappropriation of funds.
The Brokercheck report does not report any settlement of the claims by Mr. Good or Morgan Stanley. Securities firms such as Morgan Stanley may be found liable for the wrongful and fraudulent actions of their brokers under a number of legal theories. First, employers can be liable for the fraudulent acts of their employees and agents under basic agency law. Second, most state securities laws including North Carolina’s hold control persons (firms and management of firms) legally responsible for the securities fraud of their brokers, and provide for returns of losses, interest, and reasonable attorneys fees.
If you were a victim of Mr. Good or another financial advisor who stole funds or conducted a ponzi scheme, and wish to discuss your potential case with an attorney, please contact the securities fraud lawyers at Greco & Greco. You can contact Scott Greco here for a free attorney consultation.