Our Stockbroker Fraud Lawyers Are Investigating Claims Of Losses By His Former Customers Involving Options Trading, Unauthorized Trading, and More

The law firm Shepherd Smith Edwards and Kantas broker misconduct lawyer group is investigating investor loss claims against former Morgan Stanley broker Theodore Byrer, who was suspended by FINRA for unauthorized trading and unsuitably recommending risky options trading strategies to unsophisticated clients. Affected investors who suffered financial losses due to Byrer’s alleged misconduct are encouraged to seek a free consultation to explore potential recovery options through legal action against his former brokerage firm.

Shepherd Smith Edwards and Kantas broker misconduct lawyer team (investorlawyers.com) are speaking to investors who suffered losses while working with now suspended former financial advisor Theodore William Byrer. Morgan Stanley fired him in 2023 following allegations of unauthorized trading in customer accounts. Byrer went on to become an International Assets Advisory broker until 2024.

The Financial Industry Regulatory Authority (FINRA) suspension against the ex-Morgan Stanley broker, announced in July 2026, accused him of unsuitably recommending an options trading strategy to retail customers that involved buying out-of-the-money puts where the underlying assets were equity index funds. The self-regulatory organization (SRO) contends that this strategy was used in the accounts of unsophisticated investors who should not have been involved with this type of risky approach.

• One couple lost nearly $400,000 while paying more than $62,000 in commissions. Another couple lost $360,000 while paying over $218,000 in commissions.
• The cost-to-equity ratio in their accounts was at almost 69%, which is beyond what is considered excessive trading.
• Other allegations by FINRA include Regulation Best Interest violations, unauthorized trading of at least 699 options trades, omissions, and the use of unapproved channels for more than 700 communications with customers.
• Byrer consented to the 14 months of suspension without admitting to or denying the SRO’s findings.

According to Theodore Byrer’s BrokerCheck CRD, the Indiana registered representative is still an American Independent Securities Group investment adviser.

Theodore Byrer filed for bankruptcy protection in 2022. However, if you are an investor who suffered losses because of broker misconduct or negligence on his part, you may be able to file a claim for financial recovery against his former brokerage firm. Already, three investor lawsuits involving Byrer’s former customers have resulted in settlements, including one unsuitable investment claim that was resolved for $215,000.

What Does It Mean When Your Broker Violates Your Best Interests?

• This means that your financial advisor prioritized their best interests, including financial incentives, over what was in your best interests as their customer.
• This is a violation of US Securities and Exchange Commission (SEC) Regulation Best Interest, which requires more than just making sure that any kind of investment recommendation is suitable for you. It has to meet the Best Interest standard as well.
• Misrepresentations and omissions, excessive concentration, broker fraud, unauthorized trading, excessive trading, misappropriation, and negligence are other kinds of broker misconduct that can lead to an investor also suing their financial advisor for Reg BI violations.

What Should I Do If I Suffered Losses While Working With Broker Theodore Byrer?

Reach out to us at Shepherd Smith Ewards and Kantas today to schedule your free consultation. We are seasoned securities lawyers that have experience going after the largest Wall Street firms for broker misconduct or negligence that caused financial harm to investors. If you have grounds for an investment loss recovery claim, we can let you know how to proceed.

Our securities law firm represents investors in FINRA arbitration, mediation, and litigation. More than 90% of our clients have secured financial recovery through our dedicated efforts.

Call (800) 259-9010 today or contact us online to schedule your free case consultation.