Morgan Stanley Settles Customer Arbitrations Over Unsuitability
Scott J. Donato (CRD: 2336331) is a prior registered representative of Morgan Stanley from the Miami, Florida area who was terminated on March 21, 2017. He disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that his activities have resulted in a customer-initiated investment-related arbitration dated October 27, 2017. The arbitration alleges that Donato engaged in unsuitable trading. (FINRA Arbitration Case #17-02886).
According to the Morgan Stanley customer, unsuitable investments were held in the customer’s account from 2010 to 2017. Those investments included options and over-the-counter equities. Apparently, the customer has alleged $2,000,000.00 in damages as a result of being placed in the inappropriate investments. The arbitration is pending a resolution.
Donato’s FINRA BrokerCheck profile indicates that he is currently, or has been previously, the subject of at least eight other customer-initiated, investment-related disputes (comprised of complaints or arbitrations) in which customers have collectively alleged unsuitability, misrepresentation and mismanagement:
March 16, 2017 Arbitration #17-00650: A customer brought an arbitration against Morgan Stanley alleging that exchange traded funds and options held in the customer’s account were inappropriate and resulted in losses. The customer’s arbitration was settled for $995,000.00 in damages on January 25, 2018.
June 3, 2014 Arbitration #14-01430: A customer alleged that the customer’s options were not suitable for the customer. On July 31, 2015, the customer and Morgan Stanley agreed for the customer to be paid $350,000.00 to resolve the allegations of unsuitability.
May 20, 2014 FINRA Arbitration Case #14-01433: Another Morgan Stanley Smith Barney customer filed an arbitration claim alleging misrepresentation. The customer specifically stated that her options investments had been misrepresented, and requested $1,500,000.00 in damages to remedy the issue.
September 6, 2005 Complaint: A Morgan Stanley customer brought a complaint alleging that when Donato was her financial advisor, he mismanaged the customer’s account. The customer contended that Donato mishandled the customer’s equity investments for five years. The customer demanded $37,500.00 in damages as a result. Morgan Stanley DW Inc. denied the customer’s complaint on November 29, 2005.
January 8, 2002 Complaint: A customer of Morgan Stanley filed a complaint alleging that Donato made unauthorized trades in the customer’s account. The customer alleged damages totaling $387,175.00 as a result of the unapproved equities trades.
September 4, 2001 Arbitration #01-04196: A customer filed an arbitration alleging false and fraudulent representations. On January 26, 2004, the Arbitrator found Donato liable for fraudulent inducement and the violation of Florida Statutes Section 517.301. Morgan Stanley was found liable for failing to supervise Donato’s activities in customers’ accounts. Donato was ordered by the Arbitrator to pay $409,149.00 in compensatory damages to customer PM and $287,553.00 in compensatory damages to customer MG.
Donato was employed by Morgan Stanley from April 1993 to March 2017.
Gregory Tendrich, P.A. is experienced at representing investors who have suffered losses due to their financial advisor or broker unauthorized trading and unsuitable and misrepresented investments. If you have incurred losses by investing with Scott J. Donato or another broker, call Gregory Tendrich, P.A. at (561) 417-8777 for a consultation regarding your legal rights and remedies.