The Financial Industry Regulatory Authority (FINRA) has fined former Morgan Stanley rep Timothy Thomas Gibbons $20,000 and suspended him for 18 months from the industry for unsuitable recommendations to elderly clients. The now-retired rep is also required to pay $717,000 in restitution to five of those clients.
Gibbons Unsuitable Advice Recommended High-Risk Stocks
FINRA alleges that Gibbons made unsuitable recommendations to five customers between 72 and 90 years of age, recommending that they invest 65% to 79% of their account values in a single high-risk energy stock. Based on their age, risk tolerance, investment objectives and financial circumstances, FINRA states that some of Gibbons’ recommendations were unsuitable for each customer. The five Morgan Stanley customers at issue suffered total realized and unrealized losses of more than $960,000. Gibbons has neither admitted nor denied FINRA’s claims, but did accept the findings and agree to financial penalties.
Did You Lose Money as a Result of Unsuitable Broker Recommendations?
If Timothy Gibbons was your Morgan Stanley broker and you lost money or if you believe you have lost money as a result of stockbroker misconduct, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.