An NASD arbitration panel ruled against Morgan Stanley Dean Witter, awarding $234,000 in restitution to a couple who argued a broker at the firm put them into investments that were too risky, lawyers said Tuesday.
According to the California law firm, Robert and Sueellen Perry, were advised to invest in a portfolio that “was concentrated in technology securities that were unsuitable based on their financial needs and station in life.”
Calls to Morgan Stanley were not immediately returned.
The lawyers said the award resulted from Morgan Stanley’s (MWD: news, chart, profile) breach of fiduciary duty and its failure to supervise a broker named Mark Dupreez, based in Palm Desert, California.
“The brokerage firm defended the case by claiming that the downturn in the markets caused the losses,” the law firm said in a press release. “The NASD panel rejected this argument. The award represents a return of all money lost plus interest at 10 percent.”
The Financial Industry Regulatory Authority (FINRA) is a non-governmental organization overseeing brokerage firms and their registered representatives in the United States. Established in 2007 through the merger of the NASD and the regulatory functions of the New York Stock Exchange, FINRA operates under the authority of the Securities and Exchange Commission (SEC). Its primary role is to ensure that the securities industry operates fairly and transparently, protecting investors and maintaining market integrity.