Erez Law is currently investigating former Morgan Stanley broker Michael Paesano (CRD# 1557229) regarding investment losses due to churning (excessive trading). Paesano was registered with Morgan Stanley in New York, New York from 2011 to 2017, when he was terminated regarding, “Concerns related to employee’s exercise of discretion and investment strategy.”
Paesano has been the subject of 21 customer complaints between 2008 and 2019, five of which were denied, according to his CRD report. Recent complaints are regarding:
- November 2019. “Clients’ attorney alleges, inter alia, that clients were encouraged to borrow funds from their liquidity access line in their Morgan Stanley account to invest in outside investments 2011-2016.” The customer is seeking $3,600,000 in damages and the case is currently pending. The complaint took place while Paesano was registered with Morgan Stanley and it was regarding common and preferred stocks, non-broker-dealer affiliate products, and managed wrap accounts.
- March 2018. “Claimants allege excessive trading and selling away, inter alia, With respect to investments. April 2013 – December 2016.” The case was settled for $145,000. The complaint took place while Paesano was registered with Morgan Stanley and it was regarding government debt, private securities and managed wrap accounts.
- March 2018. “Claimants allege excessive trading and selling away, inter alia, With respect to investments. April 2013 – December 2016.” The case was settled for $145,000. The complaint took place while Paesano was registered with Morgan Stanley and it was regarding government debt, private securities and managed wrap accounts.
- March 2018. “Client alleges excessive trading, mismanagement of account per terms of written agreement, and alleges failure to notify him of changes in the trading strategy was tantamount to fraud. 01/01/2016-12/31/2016.” The customer sought $332,304.76 in damages and the case was settled for $89,774.79. The complaint took place while Paesano was registered with Morgan Stanley and it was regarding government debt.
- October 2017. “Time frame: 2010 to 2013 Amended Allegations: Claimants allege being defrauded through outside business investments.” The customer sought $575,000 in damages and the case was settled for $58,000. The complaint took place while Paesano was registered with UBS Financial Services, Inc. and was regarding private placements.
- October 2017. “Claimants alleged, inter alia, excessive trading with respect to transactions in accounts – 2011 to 2016.” The case was settled for $1.2 million. The complaint took place while Paesano was registered with Morgan Stanley and it was regarding government debt.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Paesano’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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