{"id":3826,"date":"2016-10-03T18:09:58","date_gmt":"2016-10-03T23:09:58","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/?p=3826"},"modified":"2022-03-25T13:16:50","modified_gmt":"2022-03-25T18:16:50","slug":"morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/","title":{"rendered":"\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests"},"content":{"rendered":"<p>&nbsp;<\/p>\n<blockquote>\n<div class=\"WordSection1\">\n<div class=\"\"><span class=\"\">Massachusetts claims that Morgan Stanley Smith Barney (MS) ran a high-pressure sales contest to give its financial advisers incentive to get clients to borrow funds against their brokerage accounts.\u00a0<\/span><span class=\"\">Massachusetts Secretary of the Commonwealth William Galvin filed the complaint against the firm.\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">According to the state, from 1\/14 through 4\/15, Morgan Stanley conducted two contests in Rhode Island and Massachusetts that involved 30 advisers. The object of the\u00a0contests were\u00a0to convince customers to take out loans that were securities-based. It involved them borrowing against the value of securities found in their portfolio. The securities were to be collateral.<\/span><\/div>\n<div class=\"\"><span class=\"\">\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">Galvin\u2019s office said that the contests urged Morgan Stanley advisers to cross-sell loans that were backed by investment accounts in order to enhance lending business, as well as banking, and stay competitive with other firms. \u00a0Galvin claims that advisers were told to get clients to establish credit lines even if they had no plans of using them. The state\u2019s complaint said that clients would be targeted after they\u2019d mention certain key \u201ccatalysts\u201d including graduations, weddings, and tax liabilities.\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">\u00a0<\/span><span class=\"\">\u00a0<\/span><\/div>\n<div class=\"\"><\/div>\n<\/div>\n<\/blockquote>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/#more-3826\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Massachusetts claims that Morgan Stanley Smith Barney (MS) ran a high-pressure sales contest to give its financial advisers incentive to get clients to borrow funds against their brokerage accounts.\u00a0Massachusetts Secretary of the Commonwealth William Galvin filed the complaint against the firm.\u00a0 \u00a0 According to the state, from 1\/14 through 4\/15, Morgan Stanley conducted two [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3774,3811,3787,3741],"tags":[3664],"class_list":["post-3826","post","type-post","status-publish","format-standard","hentry","category-broker-fraud","category-broker-dealers","category-insider-trading","category-morgan-stanley","category-securities-fraud","tag-unethical-sales"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests &#8212; Investor Lawyers Blog &#8212; October 3, 2016<\/title>\n<meta name=\"description\" content=\"&nbsp; Massachusetts claims that Morgan Stanley Smith Barney (MS) ran a high-pressure sales contest to give its financial advisers incentive to get &#8212; October 3, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests &#8212; Investor Lawyers Blog &#8212; October 3, 2016\" \/>\n<meta name=\"twitter:description\" content=\"&nbsp; Massachusetts claims that Morgan Stanley Smith Barney (MS) ran a high-pressure sales contest to give its financial advisers incentive to get &#8212; October 3, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests &#8212; Investor Lawyers Blog &#8212; October 3, 2016","description":"&nbsp; Massachusetts claims that Morgan Stanley Smith Barney (MS) ran a high-pressure sales contest to give its financial advisers incentive to get &#8212; October 3, 2016","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/","twitter_card":"summary_large_image","twitter_title":"\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests &#8212; Investor Lawyers Blog &#8212; October 3, 2016","twitter_description":"&nbsp; Massachusetts claims that Morgan Stanley Smith Barney (MS) ran a high-pressure sales contest to give its financial advisers incentive to get &#8212; October 3, 2016","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests","datePublished":"2016-10-03T23:09:58+00:00","dateModified":"2022-03-25T18:16:50+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/"},"wordCount":589,"keywords":["Unethical sales"],"articleSection":["Broker Fraud","Broker-Dealers","Insider Trading","Morgan Stanley","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/","url":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-charged-massachusetts-running-allegedly-unethical-sales-contests\/","name":"\u00a0Morgan Stanley Charged by Massachusetts for Running Allegedly Unethical Sales Contests &#8212; 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